Mr. Brian Kalish reports

GEMOSCAN SECURES ACQUISITION FINANCING FACILITY TO SUPPORT GROWTH STRATEGY

Gemoscan Canada Inc. has signed an acquisition financing facilitation agreement with NorthStar Bancorp Ltd. for up to $10-million in aggregate debt financings to support Gemoscan's acquisition of complementary businesses in the retail health care sector.

The agreement provides individual financings of senior, subordinated, convertible debt and bridge loan financing on each acquisition transaction entered into by Gemoscan, subject to certain prescribed terms and conditions. While financial terms were not disclosed, Gemoscan advised that each completed debt financing is expected to become a direct obligation of the company and/or its controlled subsidiaries. Upon signing and further to the agreement, Gemoscan issued 1,269,841 Class A shares at 7.875 cents per share, representing 1 per cent of the total facility, or $100,000, to NorthStar as a facilitation fee. These shares will be legended and restricted from trading for a period of four months.

Gemoscan is intensifying its strategy within the expanding consumer-powered health care sector through a combination of organic growth and the calculated acquisition of retail health care providers. The company expects this will increase Gemoscan's market share of its core dietary management business, while helping to transform Gemoscan into the premier platform in the rapidly emerging retail wellness and health care market.

"In an effort to drive incremental sales and profitability while at the same time providing us with a captive market to which to sell our core programs, our goal is to drive shareholder value by becoming the pre-eminent consolidator of paramedical clinics in the quickly developing, yet highly fragmented, consumer-driven retail health care market," commented Brian Kalish, Gemoscan's president and chief executive officer. "This facility is designed to provide the company and its shareholders with the necessary resources and flexibility to capture the full value of the market's growth potential."

Phoenix Capital Partners Inc. acted as the exclusive adviser for Gemoscan in arranging the facility.

About Phoenix Capital Partners

Phoenix Capital Partners is an independently owned corporate financing boutique firm, which serves the advisory, transaction negotiation and multiple financing needs of small and medium-sized companies throughout Canada.

About NorthStar Bancorp

NorthStar Bancorp (NBL) is a merchant banking firm based in Toronto. NBL seeks investments in companies positioned for substantial financial growth. Its objective is to create increased shareholder value in its portfolio companies through its ability to financially participate and facilitate their growth needs.

We seek Safe Harbor.