11th April 2005 - NewTech Brake Seeks Funding for Heavy Duty Brake Production in China

On March 29, 2005, the Board of Directors approved the issuance of a 5 years convertible debenture of US$22,000,000 divided into two blocks of US$10M and US$12M respectively and the issuance of 3,947,368 shares (restricted) of its common stock for the amount of US$3M; to this effect, the Company entered into a Commitment Letter with an Investor.

The final closing for the first block of Class A Debenture for an amount of US$10M and the Stock issue for US$3M is expected within six weeks.

Mr. Yvon Rancourt, Chairman & CEO stated: "This will bring to NewTech the capital needed to initiate the production of the NewTech heavy duty brake in our plant located in Suzhou, China and its market distribution."

Source: NewTech Brake Corporation