FACT Corporation in Agreement to Sell Calgary Office Building.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Jan. 9, 2004

FACT Corporation (OTCBB:FCTOA), an independent developer and marketer of premium functional food products, today announced that it has entered into an agreement to sell its commercial rental property located in southeast Calgary.

In accordance with a 2003 mandate from its Board of Directors to divest all non-core assets in order to focus solely on its functional foods business, FACT has recently signed a Purchase and Sale Agreement with respect to the property (which contains 22,145 square feet of office and laboratory space). The selling price is CDN $2.65 million.

The terms of the agreement call for the purchaser to assume the existing first mortgage of $1,465,000. The balance of $1,200,000 is to be paid in cash. The purchase offer is subject to a 45 day due-diligence period, with a further 45 day period to remove any other "subject to" items. The sale is expected to close not later than May 31, 2004.

"We're pleased to have located a purchaser for this commercial property," said Jacqueline Danforth, CEO of FACT Corporation. "The Board of Directors has been working diligently since the summer of 2003 to divest all non-essential real estate assets and other investments, with a corporate goal of eliminating debt and simplifying operations so that we may devote our full attention to our rapidly growing Healthy Lifestyle(TM) premixes and products business. The sale of this property would be a giant leap forward toward realizing our goal."

Upon closing, FACT intends to use proceeds from the sale to fund growth in its functional foods business and to retire any outstanding Company debt.

For more information about FACT premixes and products, contact the company at [phone] or via e-mail at [e-mail].

About FACT Corporation

Headquartered in Freehold, New Jersey, FACT Corporation develops, licenses and sells proprietary functional premixes, formulations and ready-to-eat products through Food & Culinary Technology Group Inc., a wholly-owned subsidiary. The FACT companies serve clients who manufacture, distribute and market functional food products through a variety of conventional and alternative distribution channels, including branded and private-label retail opportunities, as well as food-service and specialty markets. Visit FACT Corporation online at www.factfoods.com.

Important Information About Forward-Looking Statements 

All statements in this news release that are other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.

A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.

For further information concerning risks and uncertainties that may affect our future results, please review the disclosures contained in our latest filings with the SEC, including our most recent annual report on Form 10-KSB, our subsequent quarterly reports on Form 10-QSB and our DEF 14C filing on July 7, 2003. Other than as required by federal securities laws, we undertake no obligation to publicly update or revise any of our forward-looking statements, whether as a result of changed circumstances, new information, future events, or for any other reason occurring after the date of this news release.