Q/Media Acquires California Software Duplicator

Business Wire, August 30, 1995

VANCOUVER, B.C.--(BUSINESS WIRE)--AUG. 30, 1995--Q/MEDIA SOFTWARE (VSE:QMS) Q/Media Software Corporation today announced that it has agreed to acquire The Re-Creation Company (TRC), a mid-sized Sunnyvale, California software duplicator, through its California-based subsidiary Genysis Digital Systems Inc. The acquisition will be effective August 31, 1995 and is scheduled to close formally early in September.

Under the terms of the agreement, the Company will purchase TRC for US$150,000 payable at closing and an earn-out of between US$150,000 and US$750,000 based on the gross profit performance of TRC over the next 12 months and payable in two equal installments, 12 months and 24 months from closing. Robert M. Lawrie, Q/Media President, said the Company intends to amalgamate TRC with Genysis, move the TRC physical assets to Morgan Hill which is an easy commute from Sunnyvale and offer employment to seven TRC employees.

TRC was established in 1986 by Dirk and Susan Moore, two industry veterans, who had previously worked in sales and marketing roles with Polaroid and Verbatim Corporation. TRC has successfully carved out a strong niche focusing on customer service with a number of key software publishers in the Silicon Valley. The Company is particularly gratified, Mr. Lawrie said, that Dirk Moore who is the key TRC principal has agreed to join the Genysis management team and will be actively involved in business development for the amalgamated company. The acquisition is subject to Board and regulatory approvals.

Q/Media Software Corporation is a diversified software company developing and marketing multimedia software products throughout North America. Additionally, it is the largest supplier of software duplication and production services in Western Canada and operates major software duplication facilities in California and Washington State.

Shares of Q/Media Software Corporation are traded on the Vancouver Stock Exchange (QMS). U.S. S.E.C. exemption: 12g3-2(b) 82-3761.

CONTACT: Q/Media Software Corporation

John Watson, (604) 879-1190

or

Kieran and Co. Inc.

Jon W. Kieran/Cathy Hume, (416) 868-1079