Mr. Wayne Wadley reports

CERF INCORPORATED ANNOUNCES STOCK OPTION GRANT

CERF Inc. has granted stock options to buy 1,053,000 shares to directors, officers and employees of CERF at an exercise price of $3.17.

The stock options have been granted pursuant to CERF's 10-per-cent rolling stock option plan and will expire five years from the date of grant. All of the stock options vest as to one-third thereof on each of the first, second and third anniversaries of the date of grant. Subsequent to this stock option grant, CERF will have a total of 1,937,996 stock options outstanding.