Mr. George Fleming reports

VIDWRX INC. ARRANGES PRIVATE PLACEMENT OF SPECIAL WARRANTS

VidWRX Inc. has arranged a non-brokered private placement for gross proceeds of $300,000, through the issuance of 3.75 million special warrants at a price of eight cents per special warrant. The private placement is fully subscribed and will close upon receipt of TSX Venture Exchange approval.

Each special warrant entitles the holder thereof to acquire at any time after closing, for no additional consideration, one unit of VidWRX, with each unit comprising one common share of VidWRX and one common share purchase warrant of VidWRX. Each warrant will entitle the holder thereof to purchase one common share at an exercise price of 14.5 cents per common share for a period of 48 months following the closing date. If the company fails to qualify the common shares and warrants issuable on conversion of the special warrants, by the date that is 60 days from the closing date, certain holders of special warrants will be entitled to receive 1.25 common shares (instead of one common share) and one warrant, on the conversion of the special warrants.

In connection with the private placement, the company will pay a 6-per-cent cash commission and issue finder special warrants in amount equal to 6 per cent of the total number of special warrants subscribed for by person introduced to the company by a finder. Each finder special warrant entitles the holder thereof to acquire at any time after the closing date, for no additional consideration, a broker's warrant. Each broker's warrant entitles the holder to acquire one unit at an exercise price of eight cents per unit, each unit on the same terms as the private placement units.

The company plans to use the net proceeds from the private placement for working capital and general corporate purposes. All securities issued pursuant to the private placement are subject to a four-month-and-one-day hold period as required by Canadian securities laws.

We seek Safe Harbor.