News Release

For immediate releases                                                     October 13, 2000

NORTH SYDNEY, N.S. — Six Cape Breton businesses involved in various economic sectors are expanding or establishing their operations with Government of Canada assistance. The announcement of further Government of Canada investment in Cape Breton Island's economic diversification was made by the Honourable Bernie Boudreau at a press conference held today in North Sydney.

The projects include the expansion of the Forest Insight Limited sawmill and secondary wood manufacturing facility in Marion Bridge; the expansion of the ICT Group Inc. call centre facility in Sydney; Trakonic Incorporated's locally developed Internet-based security system; the expansion of the Best Western North Star Inn in North Sydney, the expansion of the Point of View Suites and RV Park in Louisbourg and the development and marketing of Ledgers education programs which are delivered on the Ledgers website and in CD-ROM format.

"By working in partnership with these business people, the Government of Canada is investing in Cape Breton Island's tourism, resource and manufacturing sectors as well as the knowledge-based sector where locally developed software is finding international markets," said the Honourable Bernie Boudreau, Leader of the Government in the Senate and Minister responsible for Nova Scotia, who announced the Government of Canada funding on behalf of the Honourable George Baker, Secretary of State for the Atlantic Canada Opportunities Agency and Enterprise Cape Breton Corporation.

"These projects not only represent the success of smart business owners, they also demonstrate confidence in the resilience of Cape Breton Island's economy. The faith these businesses are displaying on Cape Breton Island by expanding or establishing their operations contributes to the economic strength of the entire region," Senator Boudreau said. "These projects are prime examples of the Government of Canada's strategic investment in the kind of economic development activities requested by the general public and by the private sector."

The total estimated cost of the projects is $8,758,924 and the Government of Canada's repayable contributions totalling $2,160,000 million and a $127,000 conditional grant will be made through Enterprise Cape Breton Corporation's Business Development Program. Approximately 198 new jobs will be created and 43 full-time jobs and 19 part-time jobs will be maintained.

Enterprise Cape Breton Corporation offers programs in support of economic development initiatives and is responsible for delivering ACOA's programs on Cape Breton Island and in the Mulgrave area.

For Further Information Contact:

D.A. Landry
ECBC Communications
Tel: (902) 564-3600

BACKGROUND

GOVERNMENT OF CANADA INVESTING IN CAPE BRETON ISLAND ECONOMIC DIVERSIFICATION

SYDNEY, N.S. -- The Honourable Bernie Boudreau, Leader of the Government in the Senate and Minister responsible for Nova Scotia, announced Government of Canada funding for the following projects on behalf of the Honourable George Baker, Secretary of State for the Atlantic Canada Opportunities Agency and Enterprise Cape Breton Corporation.

Forest Insight Limited plans to expand its sawmill and secondary wood manufacturing facility in Marion Bridge. This will involve clearing additional acreage, improving the existing sawmill, building more dry kilns, building a new modern mill to manufacture hardwood strip flooring and building a finishing mill to apply pre-finish coatings to the hardwood flooring. The total estimated cost of the project is $2,913,920 and ECBC will make a $500,000 repayable contribution through the Business Development Program. The expansion project will proceed once the remainder of the financing is in place and will create 40 new jobs while maintaining 20 existing jobs.

ICT Group Inc. has expanded its call centre facility in Sydney. When it was established in 1998 the company had projected it would employ 200 people but it now employs 480 as a result of this expansion. ICT Group expanded into an additional 10,000 square feet of space in the building it is currently operating from on Vulcan Avenue. The total estimated cost of the project was $2,070,200 and ECBC made a $127,000 contribution in the form of a conditional grant.

Trakonic Incorporated of Sydney has developed an Internet-based security system. The company was established in 1997 with the objective of becoming a provider of Internet infrastructure solutions for the secure delivery of alarm and related information using a broad range of Internet-enabled devices. Today, Trakonic's product line facilitates the Internet-based delivery of innovative security services. Trakonic currently employs 30 people and company officials estimate that number will double over the next year. The total estimated cost of the project is $1,404,804 and ECBC made a repayable contribution of $500,000 through the Business Development Program.

The Best Western North Star Inn, North Sydney will expand their facility to meet the demands of the motorcoach market. The project will include the construction of 28 additional units, two meeting rooms, new furniture and fixtures, paving and landscaping. The company will also upgrade a portion of their existing rooms to meet the four star standard with the Canada Select Rating System. The project will create one full-time job and five part-time jobs and maintain 23 full-time and 14 part-time jobs. The total estimated cost of the project is $1,270,000 and ECBC will make a repayable contribution of $500,000 through the Business Development Program.

Ledgers has been providing bookkeeping, payroll and taxation services to the North Amercian small business community from its Sydney head office since 1994. In 1999 the company began offering these services through its website. New programs and services have been developed locally including the distance education program "Certificate in Accounting Technology" as well as the Ledgers-Bibby Focus Program for Emerging Entrepreneurs. Both are delivered in a CD-ROM format and on the website. Along with enhancing the website the project also involves marketing these products. The total estimated cost of the project is $780,000 and ECBC will make a repayable contribution of $500,000 through the Business Development program. The project created 39 jobs.

An expansion project at Point of View Suites and RV Park in Louisbourg will meet growing customer demand for large, seaside cottage accommodations. Four suites with two separate bedrooms will join the existing units with a central section. The total estimated cost of the project is $320,000 and ECBC will make a repayable contribution of $160,000 through the Business Development Program. Three full-time seasonal jobs will be created and five full-time seasonal positions will be maintained.

Enterprise Cape Breton Corporation offers programs in support of economic development initiatives and is responsible for delivering ACOA's programs on Cape Breton Island and in the Mulgrave area.

For Further Information Contact:

D.A. Landry
ECBC Communications
Tel: (902) 564-3617
Fax:(902) 564-3825
E-mail: dlandry@ecbc.ca

Stephen Read, President
Forest Insight Limited
Tel: (902) 727-2486

Paul Pierce, Vice President, ICT Canada
or Glenn McCormack, Director of Canadian Operations
ICT Canada Marketing Inc.
Tel: (902) 755-9050

Linden Johnson, CFO
Trakonic
Tel: (902) 539-2327
Fax:(902) 539-1651
E-mail: info@trakonic.com

Ian Oulton, President
Best Western North Star Inn
Tel: (902) 794-8581

Bill Murphy, CEO
Ledgers Canada
Tel: (902) 539-2039

Linda Kennedy, Owner
Point of View Suites & RV Park Limited
Tel: (902) 733-2080