MARKATECH INDUSTRIES CORPORATION
(the "Company")
1265 West 7th Avenue
Vancouver, B.C. V6H 1B7
Tel: (604) 732-0302 Fax: (604) 732-0377
NEWS RELEASE
Markatech Industries Corporation
VSE TRADING SYMBOL: MKD
June 22, 1998
In previous releases in April and May 1998 Markatech Industries Corp. (the "Company") announced an agreement for the acquisition of 60% of the common voting shares of MCDI Manufacturing (MCDI), a recently incorporated British Columbia corporation that will be engaged in the business of manufacturing and replicating pre-recorded formats including CD-Audio, CD-ROM and CD-DVD. MCDI will utilize a state-of-the-art optical disc manufacturing equipment which will perform the desired digital formatting (stamper making), high speed replication, printing, packaging and quality control tasks. MCDI's management team have been and continue to be engaged in many aspects of this industry and insofar as the acquisition represents the purchase of a new entity, the operations will mature rapidly, given the prior experience and existing industry contacts of the principals. The Company has been granted the right of first refuse to acquire the remaining 40% of the common voting shares of MCDI.
On June 4, 1998 the President of the Company and the management of MCDI attended the Replitech North American Conference in San Francisco, CA where the CD manufacturing industry meets to show the latest products and services of the leading manufacturers. While attending the conference the management group discovered an alternative CD manufacturing equipment supplier with outstanding new CD replicating technology. Through meeting with the upper management a very unique equipment purchase payment plan was developed. The equipment payment plan would see the supplier receive payment based on the actual number of CDs manufactured for sales only. This means that MCDI would eliminate the largest single monthly fixed cost regardless of sales. Therefore that equipment cost would be only driven by sales. After having provided the USA CD equipment manufacturer, which is a division of a $700 million a year corporate conglomerate, the MCDI business plan, we are pleased to advise that we have received their written proposal confirming the principal elements of their pay-as-you-sell CDs, equipment purchase plan.
This unique CD manufacturing equipment purchase plan where the supplier joint ventures both the risk of the equipment performance and the risk of the British Columbia market is an industry first. MCDI anticipates receiving the formal equipment purchase agreement this week.
The Company also announces the setting of additional employee and directors share purchase options in aggregate of 450,000 shares at the price of $0.15 per share.
ON BEHALF OF THE BOARD OF DIRECTORS
R. Douglas McLean
Director
The Vancouver Stock Exchange has neither approved nor disapproved the information contained herein.
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