Canadian Warrants

The qualifying transaction, which was previously announced by Added in Stockwatch on Aug. 29, 2007, was completed by way of a three-cornered amalgamation among Added, Lakeside and a wholly owned subsidiary of Added.

In connection with the qualifying transaction, Lakeside completed a private placement of 23,809,524 units at a price of 42 cents per unit for gross proceeds of $10-million. Each unit consists of one common share in the capital of Lakeside and one-half of one common share purchase warrant. The units were sold on a private placement basis by a syndicate of agents led by Northern Securities Inc. Following the completion of the private placement and the qualifying transaction there are 63,809,524 issued and outstanding common shares in Added. Of the 63,809,524 issued and outstanding common shares in Added, 16,712,679 will be subject to escrow. Twenty-five per cent of the escrowed common shares will be released on the date the TSX Venture Exchange provides a final exchange bulletin, and another 25 per cent will be released after each subsequent six-month period until all of the escrowed common shares are released 18 months from the date of the final exchange bulletin.

It is anticipated that Added's shares and warrants will be listed for trading on the exchange on Friday, Dec. 7, 2007, under the stock symbol LS for the shares and LS.WT for the warrants, subject to Added satisfying all of the exchange's outstanding conditions.

Lakeside used $6,711,268 of the funds raised pursuant to the private placement to repay 50 per cent of the $13,422,535 in long-term debt that accrued interest at 22 per cent until March 31, 2007, and at 11 per cent since that date. Lakeside retired the remaining $6,711,267 of the long-term debt from its credit facility. As a result, Lakeside no longer has any long-term debt. The remaining net proceeds will be used for capital expenditures and working capital purposes.
Lakeside has renewed its credit facility with CIT Business Credit Canada Inc., which allows for up to a maximum of $35-million in available financing subject to certain conditions and provides for an increase in annual capital expenditures to $4.2-million in each of the fiscal years ending March 31, 2008, and March 31, 2009.
Vic Alboini, chairman and chief executive officer of Added, stated: "The completion of Lakeside's going public transaction has enabled Lakeside to raise sufficient equity to retire its legacy acquisition financing that carried a burdensome interest rate. Additionally, Lakeside is now poised to consider appropriate merger and acquisition opportunities."

The officers and directors of Lakeside and Added are as follows:
 
Mr. Alboini, chairman and chief executive officer of Added, chairman and co- chief executive officer of Lakeside;
Tim Clutterbuck, president and chief executive officer of Lakeside;
Ken Hunter, chief financial officer of Added and Lakeside;
Robert O'Brien, vice-president of human resources of Lakeside;
Frank Marotta, vice-president and controller of Lakeside;
William Grant, director of Added;
Tom Milne, director of Added;
Wesley Roitman, director of Added.