FACT Corporation Successfully Concludes the Sale of Its Commercial Properties; Net Proceeds from the Two Transactions Have Been Received by the Company

Business Wire, May 18, 2005

FREEHOLD, N.J. -- FACT Corporation (OTCBB:FCTOA), an emerging nutrition solutions company, today announced that it has successfully concluded the sale of its two commercial properties located in Calgary, Alberta, Canada.

The completed transactions involved purchase agreements with two unrelated buyers for combined gross proceeds of CDN$3,525,000. After commissions and fees of approximately CDN$130,000, the sale proceeds have been used to retire outstanding mortgages against the two properties totalling CDN$2,235,000.

The CDN$1,160,000 balance due the Company was reduced by a recoverable tax hold-back of CDN$310,000. Therefore, net proceeds of CDN$850,000 will currently be available for general working capital and to further reduce the Company's outstanding debt.

FACT is taking the appropriate actions to secure the release of the CDN$310,000 presently withheld for tax purposes by the Canadian tax authorities. Management expects to realize these proceeds later this year.

"We are pleased to have successfully concluded these transactions", said Jacqueline Danforth, CEO of FACT Corporation. "Now FACT can focus on implementing its 2005-2006 growth initiatives, with the goal of generating substantially increased revenue from its core food-based operations".

About FACT Corporation

FACT Corporation develops, licenses and markets proprietary nutrition solutions through its wholly-owned subsidiaries, Food & Culinary Technology Group Inc. and FACT Products Inc. The FACT companies serve clients who manufacture, distribute and market functional food products through a variety of conventional and alternative distribution channels, including branded and private-label retail opportunities, as well as food-service and specialty markets.

FACT recently began marketing directly to consumers by launching its online store, www.eatwellstaywell.net, featuring a new line of unique, specially-formulated bake-at-home brownie, cookie, muffin, pancake/waffle and all-purpose mixes.

For more information about FACT and its products, industry trends and functional foods, please visit www.factfoods.com.