Arete Industries Inc. Launches New Direct Marketing Company; Offers Print and Web-based Direct Marketing Services.

BOULDER, Colo.--(BUSINESS WIRE)--March 26, 1999--Arete Industries Inc. (OTC:AREE) announced the immediate launch of its subsidiary, Global Direct Marketing Services Inc., as a full service print, mail and Web-based direct marketing services business through its national distribution network of licensees and franchisees.

The company also announced that it has successfully completed a smooth transition into a new full scale commercial printing and direct mail facility. As a feature of its direct marketing business, Global will sell print and mail services for the new print facility. In addition to ending operating losses, these actions are intended to generate substantial growth in revenues from its combined print and electronic media marketing service capabilities.

Thomas P. Raabe, chief executive officer of Arete, stated that it separated its print and direct marketing operations into two independent subsidiaries to achieve greater focus on core competencies and to maximize the benefits of the new joint venture with SourceOne Worldwide. (ref. Business Wire Feb. 26, 1999). Raabe added, "This move eliminates the primary source of historic operating losses, liberates the resources needed to expand into new markets and to seize opportunities with substantially greater revenue potential than was available to the company before." Raabe continued, "Our expansion into Web based direct marketing will serve as a basis on which to rebuild the company's nationwide network of franchisees and licensees to be the backbone of its sales and marketing team."

Raabe further stated that the company began outsourcing its print and direct mail requirements for its coupon business last week to its joint venture partner, SourceOne and made the transition from Council Bluffs to Denver seamlessly without any major interruptions in service to its direct mail customers. "Our customers were very pleased with how smoothly the move went," Raabe added.

Arete Industries, through its subsidiaries, offers a full range of value-added direct mail and direct marketing support services. This business currently has annualized operating revenues of approximately $1.3 million. Also, through its subsidiary, Aggression Sports Inc. the company designs and markets state-of-the-art and leading edge products for the outdoor adventurist and extreme sports enthusiast.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.