Telefficiency Holding Corporation Closes On US$1.8 Million Private Placement.

Business Editors

MISSISSAUGA, Ontario--(BUSINESS WIRE)--March 8, 2000

Telefficiency Holding Corporation (OTCBB:TTFC) announced today that it completed its private placement of US$1.8 million aggregate principal amount of three year notes due December, 2002, and bearing interest at 13%.

The private placement also included warrants to purchase up to an aggregate of 540,000 shares of the company's Class A common stock for an aggregate price of $135,000. Financial Research Limited of Green Oaks, Illinois acted as the placement agent on behalf of the company and was paid a fee of $40,000 and warrants to purchase 700,000 shares for an aggregate amount of $175,000 for its services.

Michael R. Brunet, President and CEO of Telefficiency, said proceeds of the private placement will be used to fund new sales and to increase profitability in the company's existing Ontario market. "This financing will enable us to accelerate our expansion plans in our existing markets. We are currently considering expansion into the Calgary and Montreal markets."

Recently, Telefficiency announced the successful introduction of its Competitive Local Exchange Carrier (CLEC) services. The company launched the introduction with an advertising campaign to its existing customers, representing 70,000 business lines.

Telefficiency is a North American telecommunications company that sells, installs and services business telecommunications systems ...