Securities

Montréal – On February 14, 2005, Judges Brossard, Desormeau and Pauzé of the Court of Québec, district of Montréal, confirmed the legality of the decision rendered on December 9, 2003 by the Commission des valeurs mobilières du Québec, now part of the Autorité des marchés financiers (“AMF”), whereby a freeze order was placed on an amount totalling $69,500. Enviromondial disputed the legality of the order.

In a decision dated February 11, 2005, the Bureau de décision et de révision en valeurs mobilières (“BDRVM”) extended the freeze order until May 6, 2005. This was the fourth time the order had been extended. The funds are frozen in the trust account of Alain Houle, Enviromondial’s lawyer. He may not dispose of the funds without BDRVM’s consent. These conservatory measures are intended to ensure that investors are protected while the AMF pursues its investigation

To read the Court of Québec ruling (available in French only), please consult the appendix to the press release posted on the AMF website, under Media Centre/The Autorité’s Latest Press Releases. The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.

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