CALGARY, AB, MAY 23, 2003 - Cell-Loc Inc. (TSX: CLQ) today announced that a settlement has been reached which concludes the ongoing $46 million (US) litigation action before the Supreme Court of British Columbia initiated by Aimtronics Corporation ("Aimtronics") against Cell-Loc Inc. ("Cell-Loc") and Dr. Michel Fattouche, former CEO of Cell-Loc.
Under the settlement agreement, Ansen Corporation ("Ansen"), the assignee of the Aimtronics interest in the claim, releases Cell-Loc and Dr. Fattouche from that claim. As well, upon its payment under a promissory note for $2.5 million (US), which is due and payable in two years, Cell-Loc will take ownership of finished network inventory from Ansen worth approximately $2.5 million (US). The promissory note is secured by an option to convert the note to Cell-Loc common shares at a price per share of $0.50 (US) or a technology license agreement for a specific territory in the United States. About Cell-Loc - 30 - Note to Editors: Cell-Loc, Cellocate, Cellocate System, Cellocate Beacon and TimesThree are trademarks of Cell-Loc Inc.
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Cell-Loc contact:
Cell-Loc Inc. (www.cell-loc.com), a leader in the wireless location industry, is the developer of CellocateTM, a family of network-based wireless location products that enable location-based services. Located in Calgary, Alberta, Cell-Loc currently develops, markets and supports its patented wireless location technology in Asia as well as North and South America, with a view to expanding globally. Cell-Loc is listed on the Toronto Stock Exchange (TSX) under the trading symbol: "CLQ."
Tammy Yamkowy
Director, Corporate Communications & Investor Relations
Phone: 403.569.5748
tammy.yamkowy@cell-loc.com