Circa To Acquire Manufacturing Operation

Jul 19, 2002, 01:00 ET from Circa Enterprises Inc.

    CALGARY, July 19 /PRNewswire-FirstCall/ - Circa Enterprises Inc. (CTO-
 TSX), a manufacturer of surge protection devices and related components for
 the telecom industry, is pleased to announce that it has entered into an
 agreement to purchase 100% of the outstanding shares of a privately held
 custom metal fabricating operation located in Markham, Ontario for
 consideration of $1,100,000, including the issuance of 100,000 Circa common
 shares at an ascribed price of $1.10. It is anticipated that the closing of
 the transaction will occur within the next ten days.
     The Markham company is debt free, has approximately $300,000 in working
 capital, and is expected to have an immediate accretive effect on Circa's
 earnings. Its customers include companies in the electronics, communications,
 retail, and technology sectors. The acquisition allows Circa to diversify its
 business interests and expand its control over its current manufacturing
 supply chain.
     Ivan Smith, Circa's President and CEO states that "this acquisition
 successfully meets our search criteria in that it is a healthy, profitable
 business with excellent growth potential. The purchase also offers Circa an
 opportunity to establish a presence in the Ontario marketplace, where
 potential exists for growth in sales of our present products and new
     Circa will add the Markham facility to its existing manufacturing
 locations in Calgary and Hudson, Florida. The Company is also relocating its
 U.S. surge protection sales and distribution to a new facility in Tampa,
 Florida, slated for occupancy this fall. The Tampa location provides increased
 access to distribution channels and moves the sales force closer to a growing
 market place.
     Circa Enterprises Inc. is a public company with offices in Alberta and
 Florida, trading on the Toronto Stock Exchange under ticker symbol CTO. The
 Toronto Stock Exchange has neither approved nor disapproved the information
 contained herein.

SOURCE Circa Enterprises Inc.