October 8, 2004 Securities

Montréal – The Autorité des marchés financiers (the “AMF”) is launching penal proceedings before the Court of Québec (Criminal and Penal Division) against Benoît Laliberté, Ali Reza Bassiri and Martin Gendron in the matter of Jitec Inc.

Benoît Laliberté faces 48 counts and is liable to fines totalling $1,760,180. He is accused of insider trading in the securities of Jitec Inc., while having privileged information about the company, thereby violating section 187 of the Securities Act (the “Act”), assisting Jitec Inc. in making a misrepresentation in press releases in violation of section 196 of the Act, and failing to file a report disclosing a change in his control over the securities of Jitec Inc., which is a reporting issuer, in violation of section 97 of the Act.

Ali Reza Bassiri faces 6 counts and is accused of giving an undertaking relating to the future value or price of the securities of Jitec Inc. in connection with a transaction relating to the securities of the company, thereby violating section 199(3) of the Act. The AMF is seeking fines in the amount of $30,000.

Martin Gendron faces 8 counts and is accused of giving an undertaking relating to the future value or price of the securities of Jitec Inc. in connection with a transaction relating to the securities of the company, thereby violating section 199(3) of the Act. The AMF is seeking fines in the amount of $40,000.

A class action lawsuit has already been launched by investors in this matter.

Established on February 1, 2004, the Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector. The AMF consists of the Commission des valeurs mobilières du Québec, the Bureau des services financiers, the Régie de l’assurance-dépôts du Québec, the Fonds d’indemnisation des services financiers and the Inspector General of Financial Institutions.

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