Winalta Inc.

Winalta Inc.

August 24, 2006 09:00 ET

Winalta Announces a $7.5 Million Private Placement of Subscription Receipts

CALGARY, ALBERTA--(CCNMatthews - Aug. 24, 2006) - Winalta Inc. (TSX VENTURE:WTA.A) is pleased to announce that it has entered into an agreement with Acumen Capital Finance Partners Limited ("Acumen" or the "Agent") to complete a private placement, on a "best efforts" agency basis, of 5,000,000 subscription receipts of the Company (the "Subscription Receipts") at a price of $1.50 per Subscription Receipt for aggregate gross proceeds of $7,500,000. The closing of the Private Placement is expected to occur on or about September 20, 2006.

Net proceeds of the Private Placement will be used for debt reduction and working capital purposes.

The Subscription Receipts will be exchangeable, without additional payment, into common shares of the Company on a one-for-one basis upon completion of the successful acquisition of 85.5% or more of the outstanding common shares of Winalta by Kos Corp. Investments Ltd. (the "Successful Acquisition"). If the Successful Acquisition does not occur on or before October 18, 2006, then the Subscription Receipts shall be automatically redeemed by Winalta at a price of $1.50 per Subscription Receipt plus accrued interest.


Winalta Inc is a producer of manufactured CSA certified homes, modular homes, sitebuilt homes, industrial projects and recreational homes. In addition, through its subsidiary, Vanguard Inc., the Corporation designs, manufactures, and wholesales recreational vehicles and industrial oilfield units.

Winalta Inc. shares trade on the TSX Venture Exchange under the symbol "WTA.A".

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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