NEWS RELEASES

September 11, 2000 (2:30 p.m. EDT) No. 220

PETTIGREW, CANADIAN BUSINESS DELEGATES

FORGE TIES IN HUNGARY

Minister for International Trade Pierre Pettigrew presided today over the signing of several contracts and agreements between Canadian and Hungarian companies during a ceremony held in Budapest, Hungary, as part of Canada's trade mission to Central Europe.

Many Canadian companies have succeeded in this new market. Some, like Caldwell Bio Fermentation Canada Inc. of Martinville, Quebec, and Global Highways Inc. of Brampton, Ontario, have signed contracts, while others, including Armoroof Export Inc. of Brampton, Ontario, First Nat Consulting & Export Corp. of Pointe-Claire, Quebec, the Economic Developer's Association of Canada and Export Development Corporation, have signed agreements. These signings demonstrate the volume and importance of trade between Canada and Hungary.

"The partnerships we have established here will enable us to forge greater commercial links between companies in our two countries, and will increase business opportunities," said Minister Pettigrew. "Hungary is a relatively new market for Canadian entrepreneurs, and holds out great possibilities for our enterprises."

Many of the agreements signed today are expected to generate more deals in the future. For example, InterPower Corporation of Concord, Ontario hopes to sign a Memorandum of Understanding with the Hungarian Ministry of Economic Affairs, to secure rights to some abandoned natural gas wells in Hungary. InterPower plans to use it as a fuel source for gas turbine simple cycle power plants -- a project that could be worth about $29.5 million.

Minister Pettigrew met with Hungarian Minister of Foreign Affairs Janos Martonyi to discuss a wide range of bilateral and multilateral issues. Both ministers affirmed their support for the launch of a new round of World Trade Organization talks to get under way as soon as possible.

Mr. Pettigrew had the opportunity to visit two Canadian projects: a $127.1 million luxury Four Seasons Gresham Palace Hotel by Gresco Investments; and Trigranit Development Corporation's $813 million Millennium City Centre and West-End City Centre Complex, which includes a Hilton Hotel. He also visited the Museum of Modern Art to view the painting Wedding at Cana by Giorgio Vasari, which was returned to Hungary last year by Prime Minister Chrétien as a goodwill gesture. The painting had been purchased in good faith by the Montreal Museum of Fine Arts in 1963. The Hungarian government later indicated that it had gone missing from a Hungarian collection.

Representatives of 55 companies are participating in the trade mission to Central Europe, which will continue to Bratislava, Prague and Ljubljana.

For more information about the mission, visit the Team Canada Web site at http://www.tcm.mec.gc.ca

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A backgrounder is attached.

For further information, media representatives may contact:

Sylvie Bussières

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

Backgrounder

BUDAPEST SIGNINGS

Armoroof Export Inc.

Armoroof, of Brampton, Ontario, has presented a long-time Hungarian partner -- Kanada Trade KFT -- with a Certificate of Recognition of Loyal Service to recognize their business relationship of over 10 years. Armoroof President Richard da Costa, who presented the award, was, in 1987, one of the first Canadians to receive a gold medal from the Hungarian Chamber of Commerce for his efforts in facilitating trade between Canada and Hungary.

Caldwell Bio Fermentation Canada Inc.

This Martinville, Quebec company, in collaboration with Agriculture Canada, has signed a contract valued at $180 000 over three years with Galga Farm of Galgaheviz, Hungary, to bring unique vegetable-fermentation technology to Hungary. The deal will create at least one job in Canada and two in Hungary. The company has developed a biotech starter technology -- believed to be the only one of its kind -- in a joint endeavour with Agriculture Canada in St. Hyacinthe, Quebec. The technology and starter cultures enable vegetables to be fermented without pasteurization. The Canadian content of the deal is an estimated $14 000 over three years.

First Nat Consulting & Export Corporation

First Nat Consulting and Export Corporation of Pointe-Claire, Quebec, has partnered with Inter-Est of Dunaharzsti, Hungary. This deal will provide administrative assistance for First Nat's business dealings in Hungary. First Nat, which is currently rehabilitating a food-processing plant in Hungary, expects that working with this new partner will enable it to increase its business by about $4 million.

Global Highways Inc.

Global Highways, of Brampton, Ontario, has signed a contract with S.C. Drumuri si Poduri SA of Timisoara, Romania, which will allow for the purchase of road-paving technology through Global Highways' plant in Hungary. Global Highways currently sells manufacturing technology from a contracted plant in Hungary, and this latest contract will increase sales of road-paving technology through this contracting affiliate. The deal is worth an estimated $500 000.

InterPower Corporation

InterPower Corporation, of Concord, Ontario, has taken an innovative idea and turned it into a multimillion dollar, environmentally friendly project. InterPower Corporation hopes to secure, through a Memorandum of Understanding (MOU) with the Hungarian Ministry of Economic Affairs, rights to abandoned natural gas wells in Hungary. InterPower plans to use the gas as a fuel source for gas turbine, simple cycle power plants which could result in $29.5 million in business for InterPower Corporation.

Economic Developers' Association of Canada

The Economic Developers' Association of Canada (EDAC) has signed an MOU with South Great Plains Regional Development Agency of Szeged. EDAC is responding to the city of Szeged's request for co-operation on regional economic development while also focussing on the Economic Developers' Association of Canada's priorities, including community connectivity, electronic business, e-commerce, community and government services. This agreement will facilitate connections, developmental partnerships and co-operation between Canadian and Hungarian enterprises and communities. It is expected that as a result of this agreement, Canadian firms will be able to finalize contracts within the next year.

Export Development Corporation

Export Development Corporation (EDC) has signed an agreement with General Banking & Trust of Budapest, which will facilitate co-operation between Canadian and Hungarian companies. The agreement, which is essentially an EDC line of credit valued at about $14.8 million, will enable more Canadian companies to work with Hungarian banks to secure financing.

EDC has also signed an MOU with MOL of Budapest, which will look at providing financial security to enable more Canadian and Hungarian enterprises to enter into business agreements. This agreement will assist Canada and Hungary in working together, both in bilateral commercial exchanges and in third markets. The MOU is valued at $74 million.