Mr. Hylton Karon reports

IFABRIC CORP ACQUIRES REMAINING 25% STAKE IN MARKHAM PROPERTY AND SIGNS NEW BANKING AGREEMENT

iFabric Corp. has executed an agreement to acquire of the remaining 25 per cent of the shares in its subsidiary company that owns its Markham, Ont., warehouse property.

The acquisition will be financed through a $3.7-million mortgage financing provided by BMO, which will be utilized for the share purchase as well as to repay an existing secured loan and outstanding minority shareholder loans.

In addition to the acquisition, the company is also pleased to announce that it has concurrently signed a new banking agreement with BMO, which increases its revolving operating credit facility from $6.75-million to $12-million. This expanded line of credit, which is secured by company assets, including a mortgage on the company's Markham property, will provide additional financial flexibility to support future growth and expansion initiatives. The credit facility is currently unutilized.

"This strategic investment provides us with full control of our valuable Markham warehouse property, recently valued at around $12-million, allows us to remove the borrowing restrictions imposed by the prior minority shareholders and utilize this asset to the full extent possible in order to fund our growth objectives," stated Hylton Karon, president and chief executive officer of iFabric.

About iFabric Corp.

Headquartered in Markham, Ont., iFabric is listed on the Toronto Stock Exchange and currently has 30.3 million shares issued and outstanding. Its two strategic divisions offer a variety of products and services through wholly owned subsidiaries, namely, Intelligent Fabric Technologies (North America) Inc. (IFTNA) and Coconut Grove Pads Inc.

IFTNA is focused on development and sale of high-performance sports apparel, medical protective apparel, consumer protective apparel and proprietary treatments that provide intelligent properties to fabrics, foams, plastics and numerous other surfaces, thereby improving the safety and well-being of the user. Such intelligent properties include anti-viral and anti-bacterial characteristics, water repellence, and UV (ultraviolet) protection, among others.

Coconut Grove, operating as Coconut Grove Intimates, is a designer, manufacturer, distributor, licensor and licensee of ladies intimate apparel products and accessories.

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