Mr. Marcello Leone reports

RYU APPAREL ANNOUNCES BRIDGE FINANCING

RYU Apparel Inc. has arranged a bridge financing of convertible notes for gross proceeds of $600,000 that will bear interest at a rate of 10 per cent per year, with a maturity of 90 days after the issuance of the note. The principal amount of the note may be convertible, at the option of the holders thereof, into common shares of the company at a conversion price of the greater of: (i) 40 cents per share; and (ii) a 20-per-cent discount to the closing price on the TSX Venture Exchange on the prior business day before delivery of the notice of conversion.

All securities issued pursuant to the financing will be subject to a statutory hold period expiring four months and one day after closing of the financing. Completion of the financing is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the TSX Venture Exchange. Any participation by insiders in the offering will be a related party transaction under Multilateral Instrument 61-101 (protection of minority security holders in special transactions), but will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 provided that neither the fair market value of the subject matter of the transaction nor the consideration paid will exceed 25 per cent of the company's market capitalization.

Proceeds of the financing are anticipated to be used for general working capital.

We seek Safe Harbor.