Canbras Releases Third Quarter Results.

MONTREAL -- Canbras Communications Corp. (NEX.CBC.H) ("Canbras" or the "Corporation") today released unaudited results for the third quarter of 2004.As the Corporation completed the sale of all of its operations in December 2003 (the "Sale Transaction") to Horizon Cablevision do Brasil, S.A. ("Horizon") pursuant to a share purchase agreement ("SPA"), the Corporation's unaudited consolidated statements of earnings for the third quarter of 2004 reflect only the winding up activities of the Corporation.

On August 23, 2004, the Corporation made an initial distribution to common shareholders, in the amount of $0.21 per common share (or $11.6 million in the aggregate), of the proceeds received by Canbras from the Sale Transaction. Canbras had previously estimated that the final distribution of net proceeds of the Sale Transaction to shareholders would aggregate approximately $0.30 per share (or $16.5 million) assuming no unforeseen claims were asserted against the Corporation.On November 16, 2004, Canbras announced that it had received a written notice from Horizon asserting previously unforeseen claims for indemnification by Canbras under the SPA. The aggregate amount of claims asserted by Horizon is Reais $57.6 million, or approximately $24.7 million.

Under the terms of the SPA, if Horizon desires to seek indemnification from the Corporation, it is required to send written notice thereof to the Corporation prior to December 19, 2004, describing the facts giving rise to the claim, the amount (or a reasonable estimate of the likely amount) of the claim and the provision of the SPA (or the schedules thereto) alleged to have been breached.Under the SPA, the Corporation's indemnification obligations are limited to the balance of the purchase price due under the SPA, which balance is represented by the one-year promissory note due on December 19, 2004 in the principal amount of $10.432 million, plus accrued interest thereon at 10% per annum (the "Note").The Horizon notice states that it is a preliminary list of claims, and that it is reserving its rights to supplement, review, adjust and otherwise modify its list of claims in accordance with the SPA.

As at this date, Canbras has not received sufficient information to enable it to assess the validity of the claims nor the propriety  of any subsequent demand for indemnification under the SPA in respect of such claims.As a result, the Note and accrued interest thereon are recorded on Canbras' interim consolidated balance sheet at September 30, 2004 at their face value of $11.223 million and no provision for loss has been included in Canbras' interim consolidated financial statements. Although Canbras intends to examine all such claims and, where appropriate, to contest their validity or propriety or amount, at this time there can be no assurance that the Corporation will not ultimately be held to be contractually responsible for an amount of indemnification that equals the entire amount of the Note and all accrued interest due thereon.

If the Corporation is ultimately contractually responsible for some or all of the indemnity claims asserted to date by Horizon (or for future indemnity claims which may be validly asserted by Horizon), then the amount of the final distribution of net proceeds to shareholders will be reduced, and it is possible that the amount of the final distribution to shareholders will not include any amounts previously expected to be received by the Corporation under the Note, representing approximately $0.21 per share of the originally estimated final distribution of $0.30 per share, and will be limited to cash on hand ($7.4 million at September 30, 2004) less expenses incurred to the time of the making of the final distribution, including overhead expenses, expenses related to contesting and/or defending the claims for indemnification asserted by Horizon and expenses associated with collecting amounts due, if any, under the Note.

Canbras had also previously stated that the final distribution to shareholders would be made in one or more instalments after the receipt of the balance of the purchase price payable pursuant to the Note, the satisfaction of all remaining liabilities of the Corporation and the receipt by the Corporation of up-dated tax clearance certificates.Such distributions, together with all aspects of the process of winding up Canbras, were expected to have been completed by year-end 2005. As a result of the receipt of the notice from Horizon, the Corporation cannot at this time predict the length of time that may be required to finally settle any issues surrounding the asserted indemnity claims nor to finally settle any of the lawsuits underlying any valid claims for indemnification.As a result, the Corporation cannot at this time predict when the final distribution will be made nor when the process of winding up Canbras will be completed but estimates that these events will occur no sooner than year-end 2005.

Third Quarter Results

As at September 30, 2004, Canbras' shareholders' equity was $17.9 million, down from $29.3 million at June 30, 2004. This decrease reflects the initial distribution to shareholders of $11.6 million, partially offset by the third quarter earnings of $183 thousand (comprised of accrued interest income of $330 thousand, foreign exchange gains and other income of $38 thousand offset by $185 thousand of administrative expenses).

Canbras' cash and cash equivalents and the Note (including accrued interest) as at September 30, 2004 were $7.4 million and $11.2 million respectively. Cash and cash equivalents held by the Corporation are being invested in high-grade money market instruments.

Accounts payable and accrued liabilities of $779 thousand at the end of the third quarter of 2004 represent mainly the provision for estimated remaining costs of completing the Sale Transaction.During the third quarter of 2004, accrued liabilities declined by $75 thousand principally due to a previously foreseen and accrued  remaining cost of completing the Sale Transaction being realized and paid in cash.

The earnings for the third quarter were $183 thousand.

Estimated RemainingFuture Net Assets

Following the initial distribution to shareholders and assuming that the Note and accrued interest will be collected in full and that no unforeseen claims will be asserted against the Corporation, the currently estimated remaining future net assets of Canbras at December 31, 2005 are $16.5 million. The currently estimated remaining future net assets at December 31, 2005 have not changed from the estimate made in connection with the Corporation's second quarter results. The difference between shareholders' equity on the consolidated balance sheet at September 30, 2004 and the estimated remaining future net assets at December 31, 2005 is the deduction of estimated future net costs from October 1, 2004 to December 31, 2005. Such future net costs are estimated at approximately $1.4 million comprised of wind-up costs of approximately $1.8 million net of interest income of approximately $0.4 million. However, these estimated future net costs exclude any amounts that may be required to contest and/or defend the claims for indemnification asserted by Horizon or to contest and/or defend and/or settle unforeseen claims against the Corporation.To the extent that the Corporation is not wound-up by December 31, 2005, then it will continue to incur  overhead expenses at a rate estimated to be approximately $200 to $250thousand per quarter, excluding amounts that maybe required to contest and/or defend and/or settle the claims for indemnification asserted by Horizon or in relation to unforeseen claims that may be asserted by others.Interest income may not be sufficient to cover all such expenses.

Forward looking statements

This news release may contain certain forward-looking statements that reflect the current views and/or expectations of Canbras with respect to future events.Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future events, and may contain words like "believe" "anticipate", "expect", "will likely result", or words or phrases of similar meaning.Such statements are subject to a number of important risks and uncertainties which are difficult to predict and assumptions which may prove to be inaccurate. Whether actual events and developments conform with the Corporation's expectations and predictions are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual events to differ materially from current expectations include, among other things: whether any of the claims for indemnification that have been asserted (or any future claims for indemnification which may be asserted)by Horizon under the SPA will result in a reduction of the amounts due under the Note; the collectibility of amounts due (if any) under the Note; whether any unforeseen claims are asserted by third parties against the Corporation (or its directors and officers) in connection with the winding up and liquidation of the Corporation or otherwise; the timing or amount of distributions of net proceeds of the Sale Transaction to shareholders; the timing of and costs associated with contesting and/or defending and/or settling the claims for indemnification asserted (or any future claims for indemnification which may be asserted) by Horizon; the timing of and costs associated with the final winding up and liquidation of the Corporation; and certain other factors set forth in the Corporation's filings with the Canadian securities commissions. In addition, forward-looking statements do not reflect the potential impact of future monetizations of potential assets or any legal or regulatory proceedings that may be announced after these statements are made. Canbras disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

12G Exemption #82-1927

CANBRAS COMMUNICATIONS CORP.

Estimated Remaining Future Net Assets at December 31, 2005
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(unaudited, in thousands of Canadian dollars)
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Assets as at September 30, 2004
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   Cash and cash equivalents and temporary investments         7,406
   Note and interest receivable                               11,233
   Prepaid expenses and other                                     88
                                                            --------
      Total Assets                                            18,727

Liabilities as at September 30, 2004
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   Accounts payable and accrued liabilities                      779
                                                            --------
      Total liabilities                                          779

Net assets as at September 30, 2004                           17,948

Estimated future net costs for wind-up to
 December 31, 2005 (1)                                         1,448
                                                            --------

Estimated remaining future net assets as at
 December 31, 2005 before final distribution to
 shareholders                                                 16,500
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(1)  This estimate: (i) assumes that the Note and accrued interest
     will be paid in full on the original maturity date; and (ii)
     excludes amounts that may be required to contest and/or defend
     the claims for indemnification asserted by Horizon or that may
     be required to contest and/or defend and/or settle unforeseen
     claims.

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

Canbras Communications Corp. (NEX BOARD:CBC.H)