Arete Industries Inc. Reports on Developments With Subsidiaries; Changes Fiscal Year.

BOULDER, Colo.--(BUSINESS WIRE)--Feb. 17, 1999--Arete Industries Inc. (OTC:AREE) Wednesday announced that the company has changed its fiscal year end to Dec. 31.

The company will report financial results for the interim period in a Form 10-KSB to be filed for the period from April 1, 1998, through Dec. 31, 1998. The company will now hold its annual shareholders meetings in the spring. Chairman and CEO Thomas Raabe stated that this is another step in the continuing clean-up and restructuring process to enhance financial reporting and shareholder communication.

Raabe stated that to maximize efficiencies and core specializations, the next move is to split the company's nationally franchised co-op coupon business off from its commercial print and direct mail business. He stated that Global Direct Marketing Services Inc., the company's wholly owned subsidiary, will become a direct marketing company with its initial focus on re-engineering and rebuilding the national co-op coupon franchise business and expanding immediately into electronic commerce.

The company plans to direct significant attention and capital to expanding its printing and direct mail operations to serve multiple market segments.

Additionally, the company's co-owned subsidiary, Aggression Sports Inc., has made progress in launching several new products. Mike Lowe, managing director of Aggression Sports, stated that the subsidiary company has identified several products, which are ready to be introduced into the market. He stated that he intends to introduce a winter and summer downhill scooter and a unique and innovative snow shoe product, possibly as early as the March 1999 Ski Show in Las Vegas.

Lowe stated that he is pleased with tests of the prototypes and with the positive responses received to date from industry veterans and outdoor enthusiasts. Lowe indicated that an established snow ski manufacturer has expressed an interest in helping market these products through its wholesale distribution channels.

Lowe stated that Aggression has a number of other products scheduled to be released in the near future that will address other consumer needs and other markets, but which will require further development and additional capital.

Lowe went on to explain that Aggression intends to sell innovative high-end specialty outdoor products which offer something unique and better to the winter and summer outdoor enthusiast. Its primary marketing strategy is to use advanced direct marketing techniques such as infomercials, direct mail campaigns and catalogues, electronic commerce (e-mail or electronic catalogues, Web sites and database marketing which it will obtain from Arete or through sister company Global Direct) and event sponsorship.

The company will generate its products from the proprietary Lowe Brothers' Designs portfolio and will acquire products or license rights to products from third parties which meet the criteria of being unique and patented or patentable, and which fit the criteria of providing a better product to the outdoor enthusiast. Lowe remarked that once a product has run its course in the high-end marketplace, it will be sold "down market" through the wholesale distribution channels of established outdoor sports companies.

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.