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EQUITY ANNOUNCES LAW SUIT, PROPOSED SHAREHOLDER RIGHTS PLAN, AND STATUS OF CURRENT RIGHTS OFFERING

 VANCOUVER, British Columbia, Oct. 25 /PRNewswire/ --
 Law Suit
 Equity Investments Corp. ("Equity" or the "company") announced that it has instructed counsel to file a lawsuit in the Supreme Court of British Columbia against Charles Fipke, Wayne Fipke, David MacKenzie, Norm's Manufacturing and Geoservices Ltd., CF Mineral Research Ltd., and Dia Met Minerals Ltd. ("Dia Met").
 Equity claims that it was improperly induced to sell its interest in Dia Met to certain associates of Dia Met without proper disclosure of the results of their exploration activites. Equity provided exploration funding to Dia Met and was wrongfully persuaded in early 1990 to sell and option its holdings of 825,000 shares at prices ranging from $0.25 per share to $0.3225 per share shortly before Dia Met announced a significant discovery and material changes in early 1990.
 The company is seeking rescission of the 1990 agreement and the return to Equity of the 825,000 Dia Met shares sold thereunder. Equity is also seeking a constructive trust over the shares in its favor as well as damages and costs.
 Equity has been advised by counsel that it has a reasonable basis for commencing action against the defendents but that its likelihood of success in asserting its claims and the level of recovery if successful are both difficult to quantify until the litigation process is further advanced.
 Equity was originally formed in 1987 as an investment holding company to provide liquidity to the former limited partners of a public limited partnership which invested in flow-through shares of junior Canadian mineral resource companies such as Dia Met. On the wind-up of the limited partnership in late 1988 the former limited partners received common shares of Equity, and Equity acquired and managed the portfolio of junior resource company shares previously acquired by the partnership. Equity had divested itself of its portfolio holdings by late 1992 and entered its current business in January 1993.
 Proposed Shareholder Rights Plan
 The board of directors of Equity has today adopted a shareholder rights plan designed to encourage the fair treatment of all shareholders in connection with any take-over offer for the company and to discourage take-over attempts that may not be in the best interests of shareholders.
 Peter L. Bradshaw, chief executive officer of Equity, said that the shareholder rights plan will help ensure that shareholders of Equity receive fair value in the event of a change of control of the company. Bradshaw noted that the shareholder rights plan is designed to give the board of directors of Equity time, if appropriate, to pursue other alternatives to maximize shareholder value in the event of an unsolicited take-over offer for Equity.
 The plan is effective immediately, subject to the approval of applicable regulatory authorities, and will be submitted to shareholders for their approval at the next annual meeting of shareholders. The plan will expire in five years unless extended by shareholders for an additional five years.
 The rights become exercisable only where persons, including related parties, acquire 20 percent or more of the company's outstanding voting shares without complying with the permitted bid provisions of the rights plan or without approval of the board of directors of Equity. Should such an event occur, each right, upon exercise, would entitle a shareholder, other than the acquiring person and their related persons, to purchase shares of the company at a substantial discount to the prevailing market price.
 Under the plan, a permitted bid is a bid made for all of the company's voting shares and which is open for at least 90 days. If at the end of 90 days at least 50 percent of the outstanding voting shares, other than those owned by the bidder and certain related parties, have been tendered, the bidder may take up and pay for the shares but must extend the bid for a further 10 days to permit other shareholders to tender. Under the permitted bid provisions, shareholders are assured of an adequate opportunity to consider the bid and the board of directors will be given ample opportunity to fully review alternate opportunities and to make recommendations to shareholders.
 In making the announcement, Bradshaw indicated that the adoption of the plan was not made in response to any specific effort to acquire control, nor was the company aware of any such effort. Furthermore, the plan has not been adopted to secure the continuance of management. However, the board of directors is concerned that all shareholders should be given a reasonable opportunity to realize full value for their shares and that the current share prices may not reflect the potential value of Equity's claims in the litigation with respect to its interest in Dia Met share transactions. The company noted that the plan is similar to plans adopted recently by several other Canadian companies.
 Status of Current Rights Offering
 On Sept. 13, 1993, the company announced that it had filed a preliminary prospectus for an offering to be made to its current shareholders of rights to subscribe for series 3 preference shares. The company is proceeding with the offering and expects that the final prospectus will be filed in early November with all provincial securities regulators in Canada.
 Details of the rights offering will be circulated to all shareholders when final receipt is obtained. The rights offering period will extend for three weeks from the date of the final prospectus.
 Under the terms of the rights offering, holders of common shares and series 2 preference shares will receive transferable rights to subscribe for series 3 preference shares at a subscription price which will be determined by the trading price of the company's common and series 2 preference shares immediately before filing of the final prospectus.
 Business of the Company
 As announced on Oct. 1, 1993, the company is making application to change its name to "TelSoft Mobile Data Inc." The name change characterizes data telecommunications in the wireless software applications industry, and reflects more accurately the company's principal business. The company's common shares and series 2 preference shares are listed on The Montreal Exchange.
 Equity Investments Corp. is a publicly held British Columbia-based company committed to "Building A Wireless Future" in the emerging wireless data transmission industry. The company designs, installs, and services software applications for computer aided dispatch for gas and electric utilities and cable companies.
 Wireless data communications is one of the fastest growing sectors of the telecommunications industry (currently a $2 billion market, forecast to reach $10 billion within 10 years, according to International Resource Development Inc., CT, USA). This field is expected to grow rapidly as businesses aggressively adopt wireless devices in their search for improved productivity and customer service to satisfy the mobile worker's growing need for "Information On The Run."
 -0- 10/25/93
 /CONTACT: Peter L. Bradshaw, CEO, 604-682-1400/
 (EQM.)


CO: Equity Investments Corp. ST: British Columbia IN: CPR TLS SU: OFR

LM-LS -- LA039 -- 6477 10/25/93 16:00 EDT
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Date:Oct 25, 1993
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