News Release

Vancouver – A Victoria-based company has been cease-traded by the B.C. Securities Commission and its co-chief executives must pay $10,000 after the company illegally distributed securities when it raised US$783,402 from investors.

Prism Online Corporation did not file a prospectus nor was it able to rely on any exemptions from the registration and prospectus requirements of the Securities Act when it distributed 2.8-million common shares to 212 persons from July 15, 1998 to June 30, 2000. Of the 212 investors, 83 were B.C. residents from whom Prism raised US$128,584.

In the settlement, Jean-Marie Skelly and Barbara Leanne Nast, directors and co-chief executives of the company, admitted that they participated in the illegal distributions and they also admitted that they fraudulently used some of the money raised for personal purposes that were unrelated to the business of Prism.

Skelly and Nast have been banned from the securities market for five years. The pair must resign from and are prohibited from acting as directors and officers of any company for five years. They are also prohibited from engaging in investor relations activities for five years.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. Copies of the settlement can be viewed in the documents database of the commission’s website www.bcsc.bc.ca or by contacting Andrew Poon, Media Relations, 604-899-6880.