Call 900 Inc. Announces Private Placement Of Common Shares

Business Wire, June 7, 1995

CALGARY, Alberta--(BUSINESS WIRE)--June 7, 1995--CALL 900 INC. (Alberta Stock Exchange:CNU ) Geoffrey J. Pickering, Chief Executive Officer of Call 900 Inc., is pleased to announce that the Company is offering, on a private placement basis, up to 12 convertible debentures.

The convertible debenture carries a 7.5% annual interest rate and is convertible for three years into 133,333 common shares. If converted during the first year of the term the holder, in addition to the common shares, shall also receive 133,333 warrants to purchase an additional 133,333 common shares at $0.40 per share, which warrants will expire on July 31, 1996.

These debentures will be priced at $40,000 each and will be issued pursuant to approvals by the Alberta Stock Exchange, and subject to the usual regulatory exemptions governing private placements.

The Company plans to utilize the proceeds of the offering to fund production of the Summer 1995 release of The Merchant. The Merchant is a powerful CD-ROM title produced by the Company, that incorporates text, audio, video, graphics, animation, direct ordering and searching features to create a state-of-the-art marketing medium.

A number of major U.S. corporations have contracted with Magellan Interactive Multimedia, Inc., a wholly owned subsidiary of Call 900 Inc. to participate in the rapidly growing interactive catalog marketing industry.

The Company has engaged Helmsdale Financial Inc. of Toronto, Ontario, in connection with this private placement. As fiscal agent for the Company, Helmsdale is also responsible for raising an additional $1.5 million later in the year to fund marketing of in-house CD-ROM technology and the acquisition of computer-related equipment.

Call 900 Inc. is a Canadian interactive marketing corporation whose core business is providing digital content through various high tech media such as CD-ROM, internet, online, audio ROM, cable modem, kiosk and interactive television. The Company's shares are traded on the Alberta Stock Exchange under the symbol "CNU". -0-

NOTE TO EDITORS: The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.

CONTACT: Call 900 Inc.

Andrew J. Thomson

Vice President Investor Relations

403/531-6100

or

Helmsdale Financial Inc.

W.T. David Murray

416/364-6744