BBC Capital Management Inc.: Update on Proposed Acquisition of Cornerstone Granite and Marble Wholesale, Inc.

VANCOUVER, British Columbia -- BBC Capital Management Inc. (the "Company") (TSX  VENTURE:BBC.P) is pleased to provide an update on its proposed acquisition of Cornerstone Granite and Marble Wholesale, Inc. ("CGMW"). The Company announced on September 16, 2004 that it had reached an agreement in principle with CGMW and its sole shareholder, Anthony Leeber Jr., to acquire all of the issued and outstanding shares of CGMW in exchange for the issuance of 62,500,000 shares from the treasury of the Company at a deemed price of $0.375 per share, for aggregate deemed consideration of $23,437,500.

CGMW is a private Florida corporation which imports and supplies, on a wholesale basis, raw granite and marble slabs, sinks, tiles, hardware and fabrication supplies. CGMW and Mr. Leeber, Jr. are arm's length parties to the Company.

The Company has completed its due diligence of CGMW and has entered into a definitive Share Exchange Agreement with Mr. Leeber, Jr. On the Closing Date, the Company will issue to Mr. Leeber, Jr. 15,000,000 common shares of the Company. The balance of the shares, to an aggregate maximum of 62,500,000, will be allotted and reserved for issuance over a maximum of six (6) years based on CGMW achieving the following revenue and EBITDA targets (all dollar figures in U.S. dollars):

No. of Shares             Gross Revenue                    EBITDA
Released       (aggregate since Closing)  (percentage of revenues)
-------------   -----------------------    ----------------------

10,000,000                 $  5,000,000                  Eight (8)
 9,500,000                 $ 12,500,000                  Eight (8)
 8,500,000                 $ 27,500,000               Sixteen (16)
 8,500,000                 $ 45,000,000              Eighteen (18)
 5,500,000                 $ 70,000,000            Twenty Two (22)
 5,500,000                 $100,000,000           Twenty Four (24)

All shares issued to Mr. Leeber, Jr. as consideration for CGMW will be held in escrow and released over a period of six years.

In its news release dated September 16, 2004, the Company announced a non-brokered financing for up to gross proceeds of $1,000,000 before offering costs. This "sidecar" financing is in the form of non-interest bearing, non-recourse loans from investors. These loans are convertible to common shares of the Company at a price of $0.50 per share upon completion of the acquisition of CGMW as the Company's Qualifying Transaction.

The Company is pleased to announce an increase in this "sidecar" financing to gross proceeds of $1,727,500 before offering costs. To date an aggregate of $1,914,017 has been advanced to the Company as non-interest bearing, non-recourse loans by 21 lenders. Funds advanced to the Company in excess of the maximum "sidecar" financing will, at the option of the lenders, be included in the additional financing described below.

The Company also announces a further non-brokered private placement financing of up to gross proceeds U.S.$2,000,000 before offering costs. The offering will be of 1,600,000 common shares of the Company at the price of U.S.$1.25 per share of which 400,000 shares have already been subscribed and paid for. The Company has received commitments for the balance of the offering and will close concurrently with completion of the acquisition of CGMW. This additional financing will be used to provide CGMW with working capital to expand its business and purchase further inventory of raw granite and marble slabs.

The Company has made certain advances to CGMW from the proceeds of the "sidecar" loans to assist CGMW with its working capital needs. An additional $225,000 has been advanced by the Company to CGMW from the Company's own funds.

All advances by the Company to CGMW are secured by a registered charge on the assets of CGMW and the personal guarantee of Mr. Leeber, Jr.

If the acquisition of CGMW as the Company's Qualifying Transaction does not complete, the "sidecar" lenders will be entitled  to a pro-rata assignment from the Company of the security held by the Company over the assets of CGMW and the guarantee of Mr. Leeber Jr. but they will have no recourse against the Company directly for recovery of their loans.

CGMW has completed an audit of its financial statements for the period from its incorporation in March, 2004 to October 31, 2004 and posted a net less of U.S.$657 on sales of U.S.$1,015,871. CGMW has also completed unaudited financial statements for the six month period commencing August 1, 2004 and ending January 31, 2005, which show a gross profit of U.S.$630,358 and net income of U.S.$288,582 on sales U.S.$2,134,506. This represents a gross margin for the period of approximately 29%, exceeding the Company's expectations.

The Company has made its formal submission to the TSX Venture Exchange for approval of the Qualifying Transaction.

The Company does not intend to seek shareholder approval for the Qualifying Transaction as the Qualifying Transaction is not a Non Arm's Length Qualifying Transaction (as defined in the TSX Venture Exchange policies).

The Company intends that this transaction will constitute its Qualifying Transaction. Upon approval and completion of the Qualifying Transaction, the Company will carry on through CGMW, as its wholly-owned subsidiary, the business of wholesale importation and distribution of raw slabs of granite, marble and other stone used in the construction industry, together with stone fabrication tools and supplies.

ON BEHALF OF THE BOARD OF DIRECTORS OF BBC CAPITAL MANAGEMENT INC.

Aly Mawji, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

BBC Capital Management Inc. (TSX VENTURE:BBC.P)