Anitech Enterprises Inc. and Amtag ID Inc. Announce Agreement to Complete a Reverse Take-Over and Concurrent Financing.

TORONTO -- Anitech Enterprises Inc. (TSX.V: ANI), ("Anitech") is pleased to announce that it has entered into a non-binding letter of intent dated July 19, 2004 (the "LOI") with Amtag ID Inc. ("Amtag") providing for the reverse take-over (the "RTO") by Amtag of Anitech. The completion of the RTO will be subject to entering into a definitive agreement and other conditions, including completion of satisfactory due diligence by both parties, regulatory and shareholder approval and completion of a proposed financing. In accordance with applicable rules of the TSX Venture Exchange (the "TSX-V") relating to all reverse take-overs, trading in Antitech's shares would be halted; however, Anitech's shares are already cease traded for failure to file financial statements. Anitech is currently in the process of preparing financial statements and Amtag has agreed to provide sufficient funds to ensure that the required financial information is filed.

Terms of the RTO

Under the RTO, Amtag will be acquired by or amalgamated with Anitech. Under the terms of the RTO, Anitech will consolidate its issued and outstanding common shares on a 1 for 13 basis leaving approximately 1,500,000 common shares outstanding in the hands of the current shareholders of Anitech. Anitech will then issue 20,000,000 common shares to current shareholder of Amtag in exchange for all of the outstanding common shares in the capital of Amtag. Any shareholder advances or any advances from directors who may not be shareholders shall be converted into post consolidation common shares of Anitech on the closing of the RTO, calculated by dividing the total debt owing on closing of the RTO by the price that the common shares are sold to investors in the proposed financing.

Upon completion of the RTO (but excluding certain share issuances, including shares issued in the proposed financing), Anitech will have approximately 21.5 million common shares outstanding on a fully-diluted basis. Amtag's shareholder will own, collectively, approximately 90% of the fully-diluted equity of the resulting company while Anitech shareholders and option holders prior to the RTO will own approximately 10% of the fully diluted equity. The shares to be issued to Amtag shareholders and debt holders will be subject to escrow requirements imposed by the TSX-V.

The parties have agreed to settle and enter into a definitive agreement to replace the LOI referenced above on or before July 31, 2004. The RTO is expected to be completed by September 30, 2004 (or such later date as agreed to by the parties) and either party may terminate the RTO agreement without penalty if the RTO does not close by December 30, 2004. The closing will be conditional upon, among other matters, the approval of the TSX-V in accordance with its policy on reverse take-overs, the approval of the shareholders of Anitech, the receipt of all other required third party consents and the absence of any material adverse changes in the business or prospects of Anitech or Amtag. There can be no assurance that the transaction will be completed as proposed or at all.

Proposed Financing

Anitech and Amtag will immediately seek to engage qualified agents to act on a best efforts basis in connection with the proposed financing to raise approximately $1 to $3 million through the issuance of equity securities of Anitech or the corporation resulting from the RTO (the "Financing"). It will be a condition for the closing of both the Financing and the RTO that they close concurrently. The terms of the Financing, including the size and pricing, have not been finalized and will be subject to market conditions. The agents will receive customary fees, including cash and securities of Anitech or the corporation resulting from the RTO.

In accordance with TSX-V policies applicable to Anitech, the price per security can currently be no less than the closing price per Anitech share on the business day prior to the trading halt subject to applicable regulatory policies. The net proceeds raised will be used by Anitech to grow the current business of Amtag through increased spending on, among other things, research and development and sales and marketing.

Description of Anitech

Anitech was incorporated on April 4, 1986 under the laws of British Columbia and continued under the Business Corporations Act (Ontario) on July 6, 1993. Anitech is a reporting issuer in the Provinces of Alberta, British Columbia and Ontario. Anitech's common shares are listed on the TSX-V under the trading symbol "ANI".

Since 1990, Anitech has operated Canada's largest RFID pet recovery service under the PetNet brand. Anitech continues to be a leader in the area of identity management and online tracking/tracing by taking advantage of the emerging opportunities within RFID technologies. Anitech faced severe financial difficulties over the last year as microchip sales declined and new auxiliary services did not materialize. Furthermore, an inquiry by the Competition Bureau concerning Anitech's business practices surrounding the introduction of an annual administration fee related to its PetNet division, which has been just resolved. The target assets being acquired in connection with the RTO are all of the assets, business, property or interest therein of Anitech, which principally includes its extensive data base of PetNet clients and its customer relationships.

Additional information regarding Anitech is contained in documents filed by Anitech with securities regulators, which are available on SEDAR at www.sedar.com.Anitech's only operating subsidiary is Anitech Identification Systems Inc.

Description of Amtag

Amtag is a private company that was incorporated under the Canada Business Corporations Act on July 9, 2004 and has no operating history or financial results. Amtag's address is: BCE Place, TD-Canada Trust Tower, 161 Bay Street, 27th Floor, Toronto, Ontario, CANADA, M5J 2S1. Amtag was formed specifically to enter into an agreement with iPico Inc. ("iPico"), which gives Amtag the exclusive right to distribute iPico's RFID tags, readers and middleware for bio-logistics applications in North and Central America for inter alia cattle, swine, and sheep tracing/tracking and a non-exclusive licence in all other areas. With respect to bio-logistics, iPico's Dual Frequency RFID technology is currently unmatched - providing a robust solution where the performance of Low Frequency (125-134khz) is adversely affected by electromagnetic interference and noise and where High Frequency (13.56 MHz) is unreliable. Amtag is of the view that its exclusive relationship with iPico in this regard will give Anitech a significant competitive advantage.

"Our goal is to commercialize and capitalize on our RFID expertise, first in the area of bio-logistics and then to expand through strategic acquisitions in other markets such as supply chain logistics and security. The acquisition of Anitech will complement and extend our existing product lines and is in line with our business philosophy and strategic goals. We believe that our cutting edge product lines provide us with a strategic advantage in pursuing and consummating such opportunities," concluded Gregory Roberts, CEO of Amtag.

Amtag is a wholly owned subsidiary of TAG ID Inc., a Nevada company, and has not operated. Gregory Roberts, of Aurora, Ontario, is the CEO and sole director of Amtag. TAG ID Inc. is controlled by Mr. Roberts and Gordon Westwater of Campbellville, Ontario, who also control iPico. iPico has the exclusive right from iPico Holdings (Pty) Ltd. ("iPico Holdings") to carry on iPico Holding's business in North and Central America.

Description of iPico Holdings

iPico Holdings is a leader in RFID technology and innovation. iPico Holding's products solve authentication and identification problems where conventional technologies, like barcodes, are inappropriate, but it remains important to have effective traceability. iPico Holding's technology is especially relevant where re-usability or compliance requirements exist in areas like border control, health and safety and bio-security.

iPico Holdings has developed RFID Integrated Circuits since the early 1990's. Today, its UHF, 2.45GHz and Dual Frequency RFID products excel at low cost, long read range, fast multi-read anti-collision and high thru-beam read-speeds of dynamic tag populations. iPico and manufacturers in Europe, Israel, Asia and Australasia. iPico Holding's produces smart labels and tags based on the iP-XTM communication protocol. iPico's Holding's low interference readers comply with regulatory requirements in major geographical regions, and allow for multi-reader roll-out in close proximity. The iPico DIMITM middleware platform manages applications in large scale, distributed systems, while the DIMITM data and connectivity architecture allows for effective device management, data switching and data security. iPico's Holding's RFID products are used to optimize the management of items, goods, people, animals and processes within the logistic supply chain and other values chains. For more information on iPico Holdings please visit www.ipico.co.za.

The Resulting Company

Following the completion of the RTO, the resulting company will focus principally on the RFID tracking of cattle, swine and sheep utilizing the iPico's proprietary duel frequency technology with the intention of achieving commercial development and widespread distribution of an animal tracking system as soon as possible.

The board of directors of Anitech on completion of the RTO will consist of 8 directors. The initial directors will be Gordon Westwater, Gregory W. Roberts, J. Stuart Penman, Simon Lewis, Leslie T. Gord, Charles V. Keating, Joseph P. Shannon and John H. Daniels. Mr. Lewis, Mr. Gord, Mr. Keating, Mr. Shannon and Mr. Daniels are currently on the Board of Directors of Anitech. Senior management of Anitech on completion of the RTO will consist of Gordon Westwater, Chairman of the Board, Gregory Roberts, CEO, Stuart Penman, President and COO. Gordon Westwater will maintain a critical role in providing strategic and integration advisory services to the new management team. It is anticipated that Anitech will retain other key employees.

Gordon Westwater, the President and CEO of iPico, has 20 years experience in supply chain management and has led the development of iPico's RFID initiative in North America. Mr. Westwater has held senior positions in Canada and the United States focusing on corporate strategy, diversification and North American expansion. Mr. Westwater has significant general management and turn around management experience.

Gregory Roberts is a lawyer and businessman with 15 years legal, business and entrepreneurial experience in various high technology ventures in RFID, data security, and unified communications. Mr. Roberts is Executive Vice President of iPico.

J. Stuart Penman is a supply chain professional with 20 years progressive experience in all aspects of physical distribution, logistics and transportation technology management. Mr. Penman has held officer and executive management responsibility in the consumer products, industrial and retail management sectors. As a Principal and a global practice leader with Ernst & Young, Mr. Penman led the technology application service line working with a number of multi-national corporations on international network design and operations. Mr. Penman is considered an expert in supply chain management and in the emerging field of RFID. Mr. Penman has published and lectured in these areas at several post-graduate business schools and conferences.

Sponsorship

Anitech must retain a sponsor, unless it can qualify for an exemption under section 3.4 of TSXV Policy 2.2. Representatives of Anitech and Amtag have met with the staff of the TSX-V to determine if they can rely on a sponsorship exemption. If not, Anitech and Amtag will retain a Member of the TSXV, which meets all of the Exchange's minimum specifications as set forth in section 4 of TSXV Policy 2.2. The Sponsor then must complete satisfactory due diligence in connection with this transaction. If an agreement to sponsor is entered into, it should not be construed as any assurance with respect to the merits of the transaction or the likelihood of completion. A Sponsor will receive fees for acting as an agent in the Financing and may receive fees for acting as a sponsor.

Next Steps

Anitech and Amtag have completed their due diligence investigation and a definitive agreement for the RTO has been prepared. Following execution of that agreement and receipt of certain regulatory approvals, Anitech will set a record date and meeting date for the meeting at which Anitech shareholders will be asked to approve all aspects of the RTO. Anitech currently expects that the meeting will likely be held in September 2004. Furthermore, the agreement will require Amtag to take immediate steps to pay Anitech's auditor to finalize its financial statements. Amtag has recently met with Anitech's auditor to ensure that the required financial information is completed and filed.

The current management and board of directors of Anitech have carefully considered the RTO, including the strengths of the new management and board and the proposed strategic direction represented by Amtag's business. Management and the board believe that the RTO provides an opportunity to increase Anitech shareholder value, have unanimously approved the LOI and, subject to entering into the RTO Agreement, will recommend to Anitech's shareholders that they approve the RTO at the shareholder meeting (subject to the satisfaction or waiver of conditions precedent in favour Anitech).

Additional Statements

Completion of the transaction is subject to a number of conditions, including but not limited to, TSX-V acceptance and shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the transaction, any information released or received with respect to the RTO may not be accurate or complete and should not be relied upon. Trading in the securities of Anitech should be considered highly speculative. The TSX-V has in no way passed upon the merits of the proposed transaction and has neither approved or disapproved the contents of this press release.

Anitech Enterprises Inc. (TSX VENTURE:ANI)