Avanticorp International Inc. Closes Acquisition.

TORONTO--(BUSINESS WIRE)--Dec. 8, 1998--Avanticorp International Inc. ("Avanti")(OTC BB:AVTL)--The board of directors of Avanticorp International Inc. ("Avanticorp") is pleased to announce that it has closed in escrow the acquisition of Pageant Technologies Inc. ("Pageant") pursuant to an agreement between Avanticorp and Ataraxia Corp. dated Dec. 7, 1998 (the "Agreement").

Under the terms of the Agreement, Avanticorp has issued to Ataraxia (and other persons on direction by Ataraxia) an aggregate of 32.0 million common shares and 1.0 million warrants in exchange for all of the issued and outstanding shares of Pageant. Each warrant entitles its holder to purchase one additional common share of Avanticorp for (Cdn) $2.00 during the first year and (Cdn) $2.30 during the second year following closing. Under the Agreement, certain documentation with respect to the transaction will be released from escrow on Jan. 12, 1998.

Pageant is the holder of a 50% interest in the U.S. patent and patent applications in Japan and EEC in respect of the non-volatile random access memory technology known as MAGRAM and invented by Richard Lienau of Pecos, New Mexico, U.S.A. Pageant has the MAGRAM technology. Under the terms of the license, Pageant is required to pay to the licensor or its nominee a 40% gross profits royalty (less those expenses agreed to by the parties) for each technology license sold, per unit of royalty received, or on any other revenues to Pageant which are related to the grant of rights to the use of MAGRAM.

Pageant has engaged the University of Utah to perform certain research with respect to the MAGRAM technology. Continued development of the MAGRAM technology should improve the density, speed, bit size and manufacturing process. Pageant intends to aggressively pursue the establishment of partnerships with major memory manufacturers and to establish alliances with select computer industry leaders.

The deal will be presented for ratification by shareholders at Avanticorp's Annual and Special Meeting scheduled for Jan. 11, 1999. It is anticipated that Stephen Fleming, President and C.E.O. of Pageant, will be nominated for election as a director of Avanticorp at the Meeting.