zed.i solutions inc.

zed.i solutions inc.

April 11, 2006 19:08 ET

zed.i solutions inc. Announces Acquisition of PetroNet Systems Inc.

CALGARY, ALBERTA--(CCNMatthews - April 11, 2006) - zed.i solutions inc. (TSX VENTURE:ZED) -

The union of these companies and their web-based applications enables producers to translate accurately measured oil and gas volumes into revenues with greater certainty.

zed.i solutions inc. (the "Company" or "zed.i") today announces that its wholly-owned subsidiary, zed.i solutions (Canada) inc., has completed the acquisition of all issued and outstanding shares of PetroNet Systems Inc. ("PetroNet"). PetroNet's core asset is an on-demand production accounting application for junior to intermediate Canadian oil and gas producers.

The acquisition of PetroNet aligns with zed.i's strategic direction to enable customers to realize the economic benefits associated with collecting accurate and timely field data. This moves zed.i's customers toward a more disciplined and precise production operations management business model. The PetroNet capabilities further strengthens zed.i's leadership in operations management, with solutions that increase run time, optimize production, improve decision-making, increase worker safety and reduce liabilities associated with regulatory reporting and compliance. zed.i continues to expand its capabilities to enable customers and their people to realize untapped production volumes and profits.

The acquisition is for a maximum purchase price of $2.5 million. The purchase price is comprised of an upfront payment and an earnout portion. The amount of the upfront payment at closing was approximately $1.2 million, which was paid 75% in zed.i common shares and 25% in cash. The portion of the payment in zed.i common shares is based on a share price of $1.25 per share. Based on the achievement of revenue performance targets over the next two years, the shareholders of PetroNet have an opportunity to earn an additional amount up to a maximum of approximately $1.3 million. The earnout is payable as to 25% in zed.i common shares and 75% in cash, with the portion paid in zed.i common shares valued at $1.25 per share. The maximum payout is calculated on the basis of a multiple of approximately 3.1 times 2007 earnings.

Rod Heard, VP Sales & Corporate Development, states, "The PetroNet acquisition significantly impacts zed.i's ability to increase the value we bring to our base of more than 200 customers. We are very pleased with the feedback we received from our customers during the due diligence phase of the acquisition. There was immediate recognition of the value in eliminating a number of error prone manual data entry processes and the reconciliation of duplicate data sources. We feel that with some development of the integration process, we will be able to automate much of the revenue reconciliation process within the production accounting function."

Rajesh Abbi, President and founder of PetroNet, states, "We will continue to offer our customers on-demand production accounting capabilities, and will leverage the combined strengths of zed.i to enable customers to manage their production operations with greater certainty and optimal performance. Many of our customers use both zed.i and PetroNet applications to manage real-time data from the wellhead and reconcile revenues in our production accounting system. We see this acquisition as an opportunity to unify, simplify and enhance our combined capabilities to have better access to information that can influence decisions to positively impact earnings."

zed.i solutions inc. (ZED on the TSX Venture Exchange) is a leading provider of innovative technologies for the management of production operations in the energy sector. Energy producers increase earnings through the use of digital information to improve the complex business processes that impact oil and gas production. Our intention is to continue to develop and commercialize technologies that improve cash flow from the reservoir to the point of sale for operations personnel from field and regional locations to head office. For more information please visit www.zedisolutions.com.

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