CityXpress Continues Growth in International Markets Following Successful First Auctions.

VANCOUVER, British Columbia -- Leading U.K. newspaper group plans 16 additional auctions

CityXpress Corp., a company that has generated more than $50 million in revenue for newspapers in the past two years from its event auction program, today announced an agreement with Northcliffe Newspaper Group Ltd. to stage 16 auctions in the United Kingdom during the next 10 months.

The agreement follows the completion of two successful auctions earlier this year with the Bristol Evening Post and the Hull Daily Mail, both published by Northcliffe. The Bristol auction was the first international initiative for CityXpress and attracted 84 advertisers, 40 of which were new. The Hull auction attracted 106 advertisers, 41 of them new.

CityXpress has also staged two successful auctions with newspapers in Bern and Aarau, Switzerland. The Berner Zeitung auction, held in June, generated $348,242 (CHF) (approximately $275,000 USD) in revenue and sold 80 percent of the products available for bidding; 55 percent of the advertisers were new. The Aargauer Zeitung auction closes on Sept. 29, 2004.

"Based on the tremendous success of our initial auctions in England and Switzerland, we plan to increase our efforts in Europe," said Phil Dubois, president and CEO of CityXpress. "While our initial focus will be on England and Germany, we hope to eventually expand to more countries as the auctions continue to prove to be successful."

Northcliffe Newspaper Group is one of the largest regional newspaper publishers in the U.K. with 20 daily titles. Northcliffe plans to run three of the 16 auctions this fall, and the remaining 13 next spring.

"Our initial auctions clearly demonstrated that the success of newspaper auctions in North America can be duplicated in the U.K.," said Steve Hollingsworth of Northcliffe Newspaper Group. "In fact, we see huge potential for auctions to become even more effective than in North America at attracting new advertisers and generating revenues for our advertisers as well as for our titles."

To service the increased number of international auctions, CityXpress will begin hiring European sales and training staff in October, beginning with a U.K. sales representative, said Dubois. In German-speaking markets, CityXpress is working with Norbert Specker of Catchup! Communications AG, the authorized CityXpress reseller for these markets.

Newspaper auctions are online events staged by newspapers with goods and services provided by local retailers in exchange for exposure through the auction and advertising credits that are earned if the retailer's items sell. Auctions typically take place during a 10-day period. They help newspapers attract new advertisers and generate incremental revenue from existing advertisers, while boosting in-store traffic for vendors and producing good deals for consumers.

ABOUT CITYXPRESS

CityXpress (www.cityxpress.com), the leading supplier of event auctions for the newspaper industry, has pioneered event auctions for newspapers since 2002. CityXpress works with newspapers in the United States, Canada and Europe to stage local auctions through its hosted software and on-site sales and customer support services. The company currently provides services to newspaper companies including Knight Ridder, MediaNews Group, Cox Enterprises, McClatchy, CanWest Global, Lee Enterprises, Scripps Howard, Freedom Newspapers, the New York Times Company and the Northcliffe Newspaper Group. CityXpress is headquartered in Vancouver BC and Seattle WA. In 2004, CityXpress announced a strategic relationship with Knight Ridder, the nation's second largest newspaper publisher, to be the exclusive provider of online auctions for its newspapers.

This press release and/or communication contains forward-looking statements regarding the Company's business strategy and future plans of operations. Forward-looking statements involve known and unknown risks and uncertainties, such as the Company's capital requirements and other liquidity concerns, fluctuations in demand for newspaper auctions and for the Company's other products, competition, technological developments, and other risks and factors. These and other important factors may cause actual results and performance to differ materially from the results expressed in or implied by such forward-looking statements. The forward-looking statements are based on information available to the Company and speak only as of the date hereof. The Company does not assume, and expressly disclaims any obligation or duty to update or revise any of the information presented herein.