Arete Industries, Inc. Responds to SEC Filing

Business Wire, August 4, 1999

BOULDER, Colo.--(BUSINESS WIRE)--Aug. 4, 1999--

Arete Industries Inc. (OTC:AREE) released a preliminary response to the August 2, 1999, Litigation Release No. 16235 by the Securities and Exchange Commission.

Thomas P. Raabe, Chairman and CEO of Arete, stated that: "The SEC action was anticipated and was publicly disclosed by the Company in its recent periodic reports filed with the SEC. The Company intends to vigorously defend this action. However, since we have not had an opportunity to review the actual complaint or to discuss the matter with counsel, in my opinion it is not prudent to make any other public comments or statements about this matter at the present time."

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.