Cygnal Technologies Corporation Announces Amendment to DIP Term Sheet



    MARKHAM, ON, Jan. 16 /CNW/ - Cygnal Technologies Corporation (TSX: CYN)
("Cygnal") today announced that it has entered into an agreement to amend the
DIP term sheet (the "DIP Term Sheet") dated November 14, 2007 between Cygnal,
Laurus Master Fund, Ltd., Cygnal Technologies Ltd. and Accord Communications
Ltd. Among other things, the agreement amends the DIP Term Sheet by extending
the maturity date of the facility to March 31, 2008, subject to earlier
termination upon an event of default or implementation of a plan of
arrangement in Cygnal's proceedings under the Companies' Creditors Arrangement
Act (a "CCAA Plan"), and by extending to March 17, 2008 the date by which
Cygnal must obtain creditor and court approval of a CCAA Plan.
    Cygnal also announced that it expects to seek the permission of the
Ontario Superior Court of Justice to extend the period of the Court-ordered
stay of proceedings against Cygnal and its wholly-owned subsidiaries, Cygnal
Technologies Ltd. and Accord Communications Ltd. (collectively, the
"Applicants"), and their property under the Companies' Creditors Arrangement
Act. The period of the stay of proceedings currently ends on January 31, 2008.
The purpose of the stay of proceedings is to provide the Applicants with
relief designed to stabilize their operations and business relationships with
their customers, suppliers, employees, and creditors and to provide the
Applicants with an opportunity to develop a plan of arrangement to propose to
creditors for the restructuring of, among other things, some or all of the
Applicants' liabilities. The Applicants are continuing their efforts to
develop, with the input of their creditors and other stakeholders, a
comprehensive restructuring plan to return the Applicants to viability. The
restructuring plan will likely include strategic, operational, financial and
corporate elements. As part of this process, the Applicants are also preparing
a formal CCAA plan for creditor and court approval. The opportunity for any
recovery by holders of Cygnal's common shares under any plan is uncertain and
Cygnal's common shares may be cancelled without any compensation pursuant to
such plan.

    About Cygnal

    Cygnal Technologies is in the business of providing network
communications solutions including the design, integration, installation,
maintenance and management of wired and wireless solutions and networks.
Cygnal Technologies has expertise in voice, video and data solutions over
traditional and next generation converged technologies. Cygnal Technologies
Corporation is headquartered in Markham, Ontario.

    This press release contains forward-looking statements. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Cygnal
Technologies to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements,
including the risks, uncertainties and other factors discussed in this press
release, risks associated with Cygnal Technologies' restructuring process and
the risks, uncertainties and other factors discussed in Cygnal Technologies'
filings with securities regulatory authorities. Cygnal Technologies
specifically disclaims any obligation to update these forward-looking
statements. These forward-looking statements should not be relied upon as
representing Cygnal Technologies' views as of any date subsequent to the date
of this press release.

    %SEDAR: 00000748E




For further information:

For further information: Jeff Codispodi, Investor Relations, The Equicom
Group Inc., (416) 815-0700 ext. 261, jcodispodi@equicomgroup.com

Organization Profile

CYGNAL TECHNOLOGIES CORPORATION

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