Winalta Inc.

Winalta Inc.

March 24, 2005 13:20 ET

Winalta Inc.: Clarifying News Release Regarding Going Private Transaction


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WINALTA INC.

TSX VENTURE SYMBOL: WTA.A

MARCH 24, 2005 - 13:20 ET

Winalta Inc.: Clarifying News Release Regarding Going
Private Transaction

EDMONTON, ALBERTA--(CCNMatthews - March 24, 2005) - Winalta Inc. (TSX
VENTURE:WTA.A) (the "Corporation") announces that it wishes to clarify
the News Release disseminated March 23, 2005. The Corporation announced
that the board of directors of the Corporation struck an independent
special committee on February 1, 2005 to review the proposed going
private transaction.

In completing this review, the board noted various items which warranted
consideration, including: (1) bank margining concerns; (2) personal
guarantee requirements; (3) the Corporation's future direction; (4)
anticipated funding requirements; (5) the composition of the
Corporation's shareholders; (6) the substantial ownership of stock (or
lack thereof); and (8) an overall assessment that the board is of the
view that it is in the best interests of the Corporation to continue as
a non-listed private company and the cash consideration offered in the
proposed consolidation is fair to the minority shareholders.

The Corporation also wishes to clarify that a copy of the independent
informal assessment of management's valuation of the Corporation's Class
"A" Common Shares will be included in the Information Circular to be
mailed to all shareholders in connection with the annual and special
meeting on March 28, 2005.

THIS NEWS RELEASE WAS PREPARED BY MANAGEMENT OF THE CORPORATION AND THEY
ACCEPT FULL RESPONSIBILITY FOR ITS ACCURACY.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Winalta Inc.
    James A. Sapara
    Chairman and CEO
    (780) 960-6900
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the content of this news
    release.