Winalta Inc.
TSX VENTURE : WTA.A

Winalta Inc.

August 22, 2006 11:52 ET

Winalta Inc. Confirms Mailing of the Kos Corp. Investments Ltd. Offer to Acquire 87% of the Common Shares of Winalta

EDMONTON, ALBERTA--(CCNMatthews - Aug. 22, 2006) - Winalta Inc. (TSX VENTURE:WTA.A) announces that on August 21, 2006 Kos Corp. Investments Ltd. ("Kos") mailed to Winalta shareholders its cash offer to acquire 87% of the common shares of Winalta. The price offered is either $1.50 per share or $1.425 per share at the election of each Winalta shareholder. In the event that more than 87% of the shares are tendered to the offer Kos will purchase on a pro rata basis 87% of the outstanding shares on a fully diluted basis.

The Winalta Directors' Circular accompanies the Kos Offering Circular. The directors of Winalta have determined the offer to be fair from a financial point of view and in the best interest of Winalta and have recommended that shareholders tender their shares to the offer.

Kos has also entered into an irrevocable Lock-Up Agreement with James Sapara, Alice Sapara and Winmor 7 Inc. whereby they have agreed to tender their 85.5% share ownership of Winalta to the offer, subject to pro ration. These shareholders have agreed to accept $1.425 for each Winalta share they hold.

The offer is open for acceptance for 35 days following the date of mailing. The offer is subject to certain customary conditions of completion, including receipt of all necessary regulatory approvals, approval of Winalta's bank, and the absence of any material adverse changes.

Kos Corp. Investments Ltd. is a private investment company owned by Artie T. Kos Family Trust and was established upon Mr. Kos selling his oilfield transportation company to an income fund earlier this year. The company makes strategic acquisitions and investments in various businesses.

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.

Contact Information