Franchise Services of North America Inc. Files Restated Q1 Report; Update on Regulatory Matters

TSX-V Trading Symbol: FSN

Jun 04, 2008, 01:00 ET from Franchise Services of North America Inc.

    CALGARY, June 4 /PRNewswire-FirstCall/ - Franchise Services of North
 America Inc. ("FSNA" or the "Company") announced today that it has filed
 its restated Q1 report on SEDAR today after review by the Alberta
 Securities Commission (the "ASC").
     It is anticipated that the Company's Q2 interim report will be filed
 shortly; however, the ASC has requested the opportunity to review FSNA's Q2
 interim report for the period ended March 31, 2008, which includes
 supplemental disclosures as it relates to the Q2 comparative figures for
 the period ending March 31, 2007, prior to its release. The Q2 report was
 to be filed on May 30, 2008; however the Company did not file the Q2
 report, pending completion of the ASC's review of the Q1 report. Lastly,
 management does not believe that trading in FSNA's shares will resume until
 the ASC has completed its review of the Q2 report.
     Bob Barton, the Company's Chief Operating Officer, stated, "The
 Company, along with the assistance of its external advisors, has been
 diligently working on addressing the comments received from the ASC. We
 anticipate providing the ASC with a draft of the Q2 report within the next
 few days. We look forward to the ASC completing its review of our Q2
 report, and we have already submitted our applications to have the cease
 trade orders revoked."
     About FSNA
     FSNA is a publicly traded company listed on the TSX Venture Exchange.
 The Company and its subsidiaries own the following brands: U-Save Car &
 Truck Rental, U-Save Car Sales, Rent-A-Wreck of Canada, Auto Rental
 Resource Center ("ARRC"), Xpress Rent A Car and Peakstone Financial
     U-Save, together with its subsidiary ARRC, has over 1,100 locations
 throughout the United States and is one of North America's largest
 franchise car rental companies. Having primarily serviced the local market
 for the past 25 years, the Company is expanding into the airport market
 with plans for the opening of airport locations in the top 30 markets in
 the United States and the major airports in Canada. U-Save currently
 services 27 airport markets in 14 different states. U-Save Car Sales is an
 expansion of the U-Save brand into the car sales market, and provides goods
 and services to car sales operators looking to affiliate with a national
     Practicar Systems Inc. (a wholly owned subsidiary of FSNA) owns the
 rights to the Rent-A-Wreck(R) trademark for all of Canada. The
 Rent-A-Wreck(R) system operates a network of 53 franchises from
 coast-to-coast in Canada, providing a range of vehicle rental, leasing and
 sales options to its customers. The Rent-A-Wreck(R) system has been in
 continuous operation in Canada since 1976.
     Forward-Looking Information
     Certain statements made in this news release are forward-looking
 including those sections wherein the Company has provided an update on
 certain regulatory matters. The words "may," "could," "should," "would,"
 "expect," "intend," "estimate," "anticipate," "believe," or "outlook" and
 similar expressions often identify forward-looking information. By their
 nature, forward-looking statements require FSNA to make assumptions and are
 subject to inherent risks and uncertainties. There is significant risk that
 predictions, forecasts, conclusions and projections will not prove to be
 accurate, that FSNA's assumptions may not be correct and that actual
 results may differ materially from such predictions, forecasts, conclusions
 or projections. With respect to these forward-looking statements, we have
 assumed, among other things, that the ASC is satisfied with the responses
 that management has provided and that the applicable securities regulatory
 authorities will grant the Company's applications to have the cease trade
 orders lifted upon the ASC's completion of its review of the Q2 interim
 report and FSNA's filing of the same. If such assumption proves incorrect,
 there is a risk that the Company's assessment of the progress that it has
 made in seeking to have the cease trade orders lifted could prove
 materially incorrect. FSNA's forward-looking statements are qualified in
 their entirety by these cautionary statements. In addition, the
 forward-looking statements are made only as of the date of this news
 release, and except as required by applicable law, FSNA undertakes no
 obligation to publicly update these forward-looking statements to reflect
 new information, subsequent events or otherwise.
     The TSX Venture Exchange does not accept responsibility for the
     or accuracy of this release.

SOURCE Franchise Services of North America Inc.