Pallet Pallet announces Shareholder approval for Share Issuance.

TORONTO--(BUSINESS WIRE)--Aug. 12, 1997--Pallet Pallet Inc.(TSE PLT. ) Pallet Pallet Inc. is pleased to announce that it's shareholders approved, at a Special Shareholders Meeting held yesterday, the issuance on a private placement basis of up to 30,333,333 common shares of the Company to Equity Merchant Banking Corporation and Connecticut Bank of Commerce.

As previously announced, EMBC has agreed to invest by way of private placement approximately Cdn $1.5 million. In addition, CBC has agreed to extend to the Company a receivable purchase facility in the amount of US $14.5 million and a lease of certain of the company's tangible personal property and equipment in the amount of US $5.5 million. Together, these facilities will provide sufficient funding to consolidate and refinance all existing bank lines of credit and noteholders, some of whose obligations have already matured and are currently due and payable.

The 30,333,333 shares of the Company which EMBC and CBC shall receive in aggregate pursuant to these transactions, will represent, after completion of the transactions, approximately 30% of the issued and outstanding shares of the Company.

The Company anticipates that the closing of the private placement and facilities will occur in approximately two weeks.

Mr. Douglas Moore, President and CEO of the Company also announced the appointment of Gary Stanton as Chief Financial Officer of the Company effective August 1, 1997. Mr. Stanton is a Certified Public Accountant and has previously been employed as CFO for both private and public companies in the United States.

Pallet Pallet Inc. operates North America's largest integrated distribution network for new and recycled wood pallets, reusable plastic pallets and containers, and related products. The Company is listed on The Toronto Stock Exchange under the symbol "PLT".

CONTACT: Pallet Pallet Inc.

S.M. (Sue) Topping, 416/621-6690

FAX: [phone]