Canbras Reports Delay in Initial Distribution to Shareholders.

MONTREAL -- Canbras Communications Corp. (NEX BOARD:CBC.H) ("Canbras" or the "Corporation") provides an up-date regarding the anticipated schedule for distributions to shareholders, and reports that the initial distribution, originally estimated to be made by June 30, 2004, has been delayed due to a delay in the issuance to the Corporation of certain required tax clearance certificates.

As previously announced, Canbras intends to distribute to shareholders proceeds from the sale of all of its broadband communications operations (the "Sale Transaction"), which Sale Transaction was concluded on December 24, 2003.The total estimated amount to be distributed to shareholders is $28.1 million ($0.51 per share), and the distributions will be made to shareholders in instalments.

The Corporation also previously announced on May 27, 2004 that the initial distribution in the amount of approximately $11.8 million ($0.21 per share) was estimated to be made during the first half of 2004, subject to receipt by the Corporation of tax clearance certificates from the federal and certain provincial taxation authorities in Canada.At this time, the Corporation has received some of the required tax clearance certificates, but is still awaiting certificates from various jurisdictions.As a result, the initial distribution will be delayed until such time as all required tax clearance certificates in respect thereof have been received, and the Corporation cannot anticipate when such certificates will be issued by the relevant taxation authorities.

The final distribution, to be made in one or more instalments after the receipt of the balance of the purchase price payable under the one-year note issued by the purchaser in the Sale Transaction, the satisfaction of all remaining liabilities of the Corporation and the receipt by the Corporation of up-dated tax clearance certificates, is expected to aggregate approximately $16.3 million ($0.30 per share).

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 claims are asserted which would reduce the amounts due under the one-year promissory note; the collectibility of amounts due under the one-year promissory note; whether any unforeseen claims are asserted 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 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