AVVA Technologies updates business arrangement with Optican Technologies Inc.

CALGARY, Alberta--(BUSINESS WIRE)--Feb. 13, 1995--AVVA TECHNOLOGIES INC. (Alberta Stock Exchange: AVY) Further to the press release of December 12, 1994, where AVVA Technologies Inc., (AVVA), had concluded a licensing/royalty agreement with Optican Technologies Inc. (Optican), Optican, an Alberta company, has been granted an exclusive license to manufacture and distribute AVVA products throughout the United Arab Emirates (U.A.E.) and the whole Middle East region.

Optican has incorporated "Optican Lighting Systems Co. Ltd." as a United Arab Emirate (U.A.E.) Limited Liability Corporation. The Corporation is 49% owned by Optican and 51% owned by Mr. J. Al Hameli. Mr. Hameli is a U.A.E. National and Director of State Security for the Emirate of Abu Dhabi. Optican Technology Inc. will be the operating company. Optican has committed to establishing a manufacturing facility in Abu Dhabi, U.A.E., with a projected start-up date of May 1, 1995.

Optican has membership in the Abu Dhabi Chamber of Commerce and the principals have permanent resident status in the U.A.E., enabling them to sponsor other corporations into the region.

Under the license agreement, AVVA will receive a royalty of US $27.00 per unit sold by Optican until Optican's initial capital investment is recovered, at which time AVVA's royalty will increase to US $38.67 per unit. Optican has projected to sell 18,000 units in its first year of operation. The total projected first year royalty to AVVA could equal up to US $486,000. Optican is purchasing approximately $190,000 in inventory through AVVA and approximately $300,000 of equipment. It has been agreed that the initial start-up materials (inventory and equipment) will come from AVVA, so as to maintain quality control. AVVA is providing the technical knowledge, training and support to allow Optican to establish a successful operation.

Al Ain Advertising Est., a company owned and operated by Mr. Hameli, provides commercial advertising to the Middle East region and Europe. Al Ain is in the process of initiating a multi-media advertising campaign for the company and AVVA's edge-lit signs. Al Ain Advertising is interested in AVVA's products as a new advertising media for its clients, which include Pepsi-Cola.

Optican is presently undertaking a proposal to the Khalifa Committee, the approval board for all construction in Abu Dhabi, for the use of AVVA's energy efficient sign products in the Emirate of Abu Dhabi. Early indications are that the Khalifa Committee will legislate that all internal building signs in the future will have to utilize AVVA's edge-lit technology, in order to save power subsidies paid by the state.

Optican has been provided access to the recently established U.A.E. "offset fund" for future expansion. The fund provides 100% of funding for the establishment of project development in the U.A.E. Optican has the ability to establish branch or agency/distributor operations in other Middle East locations and has already received interest.

AVVA and Optican are discussing future development opportunities which would benefit both corporations.

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The Alberta Stock Exchange neither approves nor disapproves of the information contained herein.

CONTACT: AVVA Technologies Inc.

Mr. Mark Komonoski, 800/665-3749 or 403/252-6047

KEYWORDS: REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or