FACT In License Agreement with Major Wholesale Distributor.

Business Editors

FREEHOLD, N.J.--(BUSINESS WIRE)--Sept. 24, 2003

FACT Corporation (OTCBB:FCTOA), an independent developer and marketer of premium functional food products, today announced that a large U.S. bakery ingredient distributor has licensed FACT's line of proprietary functional premixes for marketing to the distributor's wholesale customers.

The new licensee is initially promoting FACT's premixes for use in low-carbohydrate baked goods under one of its in-house brands. The premixes, which are sold in 25 and 50 pound bags, are used as a base for breads, bagels, muffins, cookies, scones and other baked goods. The terms of the license agreement provide for the distributor to pay a royalty to FACT for each pound of premix sold.

"We are fortunate to have a leading bakery ingredient distributor selling our premixes as a branded item," said Jacqueline Danforth, CEO of FACT Corporation. "It's too early to project the impact this new partnership will have on our future revenue and earnings, but we believe that the introduction of our functional premixes to the bakery market nationwide via the distributor's sales force could generate substantial interest in FACT's products."

The new FACT distributor, which is a U.S. subsidiary of an international corporation based in Europe, manufactures over 200 products at a modern facility in the state of New York. It provides the baking industry with a wide variety of high-quality breads, cakes, ready-made mixes and bases, as well as a full line of sours, dough conditioners and flavors.

About FACT Corporation

Headquartered in Calgary, Alberta, FACT Corporation develops, licenses and sells proprietary functional premixes and formulations through a wholly-owned subsidiary, Food & Culinary Technology Group Inc., targeting 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.