C-Chip Announces Conversion of US$2M Debenture Held by Capex Investments Limited.

Business Editors/High-Tech Writers

MONTREAL--(BUSINESS WIRE)--Aug. 7, 2003

C-Chip Technologies Corporation (OTCBB:CCHI) is pleased to report that Capex Investments Limited ("Capex"), C-Chip's largest shareholder, has opted to immediately convert its US$2M debenture issued last January as part of the acquisition of the C-Chip technology by the Company. Convertible at anytime at the option of Capex at a discount of 15% to market price, C-Chip's debenture was set to mature in January 2007. As of result of conversion, C-Chip issued 3,910,120 restricted shares of its common stock to Capex.

Robert G. Clarke, Capex's President and C-Chip's Chairman, indicated: "We are extremely pleased with C-Chip's business development. From a focus strictly on R&D not so long ago, the Company's center of attention is increasingly sales and marketing and we fell this is about to pay off. C-Chip's newly introduced products are gathering significant interest from potential customers. By immediately converting our debenture, we believe the value of our holding in C-Chip will benefit in the future from significant capital appreciation."

Stephane Solis, C-Chip's President & CEO, said: "This is a strong endorsement for the Company. We are quite thrilled to obtain such a vote of confidence by Capex. For us, Capex's conversion eliminates a hurdle to a significant capital infusion enabling the Company to realize its growth potential. As such, the elimination of Capex's convertible debenture is expected to impact very positively on our business development."

About the C-Chip(TM) Technology

The C-Chip(TM) is a new patent-pending, web-based wireless set of tools that offers complete remote control over targeted equipment and services. It allows selective enabling, disabling and any other commands at will, from anywhere to practically anywhere in North America, at this time. Applications for the C-Chip(TM) technology in credit risk, security and pay-per-use management solutions offer practically unlimited opportunities for growth worldwide. Detailed information on the technology and its applications is available on our web-site at www.cchiptech.com.

About C-Chip Technologies Corporation

C-Chip Technologies Corporation is centering market penetration of the C-Chip(TM) on three specific applications; credit, security and pay-per-use management solutions for vehicles, business machines, industrial machinery and different consumer electronic products. The Company's goal is to be recognized as a leading provider of security and credit management solutions for insurance companies, lending institutions and leasing companies in the automotive market, business machine and equipment sector. Our initial marketing thrust is in North America where vehicle theft and defaulting loans are currently having a significant economic impact.

FORWARD-LOOKING-STATEMENT: Except for factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks and uncertainties, including the effect of changing economic conditions, competition within the credit and security industry, customer acceptance of products and other risks and uncertainties. Such forward-looking statements are not guarantees of performance, and C-Chip Technologies Corporation results could differ materially from those contained in such statements. These forward-looking statements speak only as of the date of this release, and C-Chip Technologies Corporation undertakes no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.