Advantex in Advanced Negotiations for Possible Debt Financings to Support Growth Plans
11/27/2007 12:00:00 AM
  

NEWS RELEASE

Advantex in Advanced Negotiations for Possible Debt Financings to Support Growth Plans

• Debt financings would enable Advantex to meet backlog of merchants wishing to join its Advance Purchase Marketing Program

Toronto, November 27, 2007, - Advantex Marketing International Inc. (TSX: ADX), a leading specialist in merchant funding and loyalty marketing programs,  today announced that it is in advanced negotiations regarding credit and equity financing opportunities to support its strategic growth plans, including the growth of its Advance Purchase Marketing Program.

Under the Advance Purchase Marketing Program, which it operates with the Visa division of CIBC, Advantex purchases transaction credits from merchants on behalf of Advantex’s customers (premium CIBC Visa cardholders). This provides merchants with cash in advance for working capital based on future sales. As cardholders make purchases at participating merchants, Advantex collects the funds from the transactions and the merchant’s transaction credit balance declines. Advantex is the originator and leader of Advance Purchase Marketing in Canada.

“Our Advance Purchase Marketing Program has proven so very popular with a broad spectrum of merchants in Canada that we require additional capital to fund its growth,” said Kelly E. Ambrose, President and Chief Executive Officer. “As we indicated in our recent announcement of our fiscal 2008 first-quarter financial results, we have a backlog of merchants wishing to join the Advance Purchase Marketing Program. The financings that we are negotiating will enable us to add those who have applied to join the program and will enable us to more aggressively pursue additional merchants.”

One of the two potential debt financings consists of access to a funding line of up to $5 million that can be drawn on as required to support cash advances to merchants. The other potential debt financing would be in the form of debenture to be offered on a private placement basis to raise gross proceeds of up to $2.5 million. Additional terms of such financings will be announced at such time as Advantex has entered into a definitive agreement to proceed with either or both of them.

About Advantex Marketing International Inc.

Advantex is a specialist in the marketing services industry, managing white-labeled rewards accelerator programs for major affinity groups through which their members earn bonus frequent flyer miles and/or other rewards on purchases at participating merchants.  Under the umbrella of each program, Advantex provides merchants with marketing, customer incentives, and secured future sales through its Advance Purchase Marketing Program. Advantex partners include more than 700 restaurants, online retailers, golf courses, small inns and resorts, and major organizations, including CIBC, United Airlines, Delta Airlines, Alaska Airlines, and Lufthansa Airlines. Advantex is traded on the Toronto Stock Exchange under the symbol "ADX". For additional information on Advantex, please visit www.advantex.com.

This news release contains certain "forward-looking statements".  All statements, other than statements of historical fact, that address activities, events or developments that the Advantex believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding proposed financings, financial and business prospects and financial outlook) are forward-looking statements.  These forward-looking statements reflect the current expectations or beliefs of Advantex based on information currently available to Advantex.  Forward-looking statements are subject to a number of risks, uncertainties and assumptions that may cause the actual results of Advantex to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Advantex.  Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in general economic and market conditions, changes to regulations affecting the Advantex's activities, uncertainties relating to the availability and costs of financing needed in the future, and delays in finalizing retail contract.  Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Advantex disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.  Although Advantex believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.