IT SECTOR CONTINUES TO GROW WITH PANGAEA \"SOLUTIONCENTRE©\" IN REGINA

Released on July 15, 2003

Minister responsible for Information Technology Andrew Thomson today announced a $3 million investment in Pangaea Systems Inc. as part of an ongoing initiative to grow the province's IT sector. The company will establish a "SolutionCentre©" in Regina that will focus on near-shore business development.

Pangaea Systems Inc. is a privately held e-Business software developer and solutions provider with core strengths in software creation, project management, and security and private consulting. The Pangaea "SolutionCentre©" will create up to 35 jobs within the first 12 to 18 months of operation. The company will work to expand the province's IT sector by attracting near-shore business and creating new outsourcing and joint venture opportunities with local companies. As a result of Panagea's concentrated marketing efforts, Saskatchewan IT companies will see an overall benefit from an enhanced profile as a lower cost jurisdiction, as well as a provider and developer of IT services.

Thomson said the Pangaea investment upholds CIC's mandate to facilitate growth in key industry sectors, in this case the province's promising area of Information Technology. In keeping with the "Our Future Is Wide Open" campaign and RREDA economic development strategies, this investment demonstrates the government's ability to be relevant, responsive, and responsible in fostering the growth of emerging sectors.

"Today's announcement is a solid step forward for the province's IT community and an excellent demonstration of how 'The Saskatchewan Edge' continues to grow in this key economic sector," Thomson said.

"Regina is proud to welcome Pangaea Systems Inc. to our city," Regina Mayor Pat Fiacco said. "This will help expand and enhance our city's IT sector growth. Not only will Pangaea provide the opportunity for local graduates and trained technicians to work in this field, it will help enhance both the province's and Regina's reputation as a great place to live and work. I know that Pangaea will love Regina as much as we all "Love Regina."

"This investment supports Pangaea's strategic growth plans into new geographic markets with new offerings," Pangaea Chief Executive Officer Bill Arnett said. "Our new SolutionCentre© in Regina will support the expansion of our business into the United States and will allow us to use Saskatchewan technology and business expertise to build superior e-Business solutions for our Canadian and US clients. The investment from CIC is another indicator of market approval of Pangaea's business plan and growth strategy."

Several of Saskatchewan's IT stakeholders gathered at the event to offer their support of the deal.

"This is a very exciting announcement for Regina and Region. RREDA has identified this sector as having great potential for growth," Regina REDA CEO Larry Hiles said. "We are thrilled that Pangaea has recognized this as well, and will be taking advantage of our location for near-shore export opportunities to the US, our significant IT infrastructure, our highly skilled workforce and our low cost environment. Pangaea will assist our IT sector in growing the economic pie as we continue to develop a centre of excellence in the IT field."

"I am delighted to see the addition of an innovative firm with a focus on the exciting area of e-Business joining Regina's strong information technology sector," University of Regina Department of Computer Science, Faculty of Science member Brien Maguire said. "Pangaea's arrival in Regina provides another excellent option for our Computer Science graduates who are choosing to stay in Saskatchewan in increasing numbers for their careers."

"From our perspective, any initiative that brings IT jobs and export opportunities to our province is good news for our industry and our youth," Technology Management Corporation (TMC) President David Luterbach said. "With offices in both Regina and Calgary, we understand the benefits of doing near-shore work here in Saskatchewan. We look forward to working alongside companies like Pangaea to bring new and exciting IT consulting project work into Saskatchewan."

Pangaea is a respected member of the nation's IT scene and has been at the forefront of the development of business-to-business e-commerce models in Canada, leveraging the company's strengths in Internet service provision and software development to meet growing worldwide demand for leading edge e-services. The company web site is located at www.pangaeainc.com.

-30-

For More Information, Contact:

Lanis Anthony CIC Regina Phone: (306)787-7273

Jason McIntyre Pangaea Systems Inc. Calgary Phone: (403)541-2582