zed.i solutions inc.
TSX VENTURE : ZED

zed.i solutions inc.

January 26, 2006 18:07 ET

zed.i solutions inc. Completes Payment to Acquired Partner Roughneck.Ca Inc.

CALGARY, ALBERTA--(CCNMatthews - Jan. 26, 2006) -

Operations management and compliance capabilities of Roughneck.ca prove valuable additions to zed.i's production operations management systems and services

zed.i solutions inc. (TSX VENTURE:ZED) (the "Company" or "zed.i") today announces the final payment for the acquisition of Roughneck.ca Inc. ("Roughneck"). zed.i acquired Roughneck in April 2005 to strengthen its position as an emerging leader in decentralized production operations management and compliance for commodities industries. The terms of the acquisition set out that payment for Roughneck would be in two parts, an upfront payment and final payment based on Roughneck revenues to December 31, 2005. This final payment of approximately $2.75 million in cash and shares was transacted today.

Based on Roughneck.ca revenue to December 31, 2005, the final payment for the acquisition was $2,751,302.20. Combined with the upfront payment, the total purchase price of Roughneck.ca totalled $5,151,302.20. Based on the terms of the purchase and sale agreement, the earnout will be paid as 20 per cent cash and 80 per cent in zed.i common shares. The cash payment will be $550,260.44 and the balance will be paid in 1,467,361 common shares, based on a deemed price of $1.50.

Keith Smith, President and CEO of zed.i solutions stated, "Contributing more than $1,645,000 in revenues during the last eight months, Roughneck has proved to be a strong contributor to our customers' performance and our own. Roughneck's capabilities in managing assets, emissions, maintenance, health and safety are vital additions to our suite of automated systems and expert services for the surveillance, measurement, analysis and management of production operations intelligence."

Energy producers are beginning to recognize zed.i as an emerging leader in production 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.

zed.i solutions inc. (ZED on 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


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

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