MicroPlanet Closes on Final Tranche of Fully Subscribed Financing

    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    Company: MicroPlanet Technology Corp.
    Stock Listing: MP:TSXV
    Stock Listing (US): MCTYF: OTC
    Web Site: www.microplanet.com
    

SEATTLE, Oct. 16 /CNW/ - MicroPlanet, (MP:TSXV & MCTYF:OTC) a smart grid, energy conservation company is pleased to announce today that the Company has closed on the final tranche of a non-brokered Convertible Note financing in the amount of $1,263,000 for a total aggregate amount of funds raised of $4,000,000. Included in the closing of the final tranche is a $750,000 investment by an institutional investor. The Convertible Note financing was fully subscribed.

The secured Convertible Notes of the Company (the "Notes") have a two year term and bear interest at the rate of twelve percent (12%) per annum payable semi-annually in arrears. The holders will have the option to convert the principal amount into common shares in the capital of the Corporation at a conversion price of $0.17 per share at any time, or receive full repayment in cash at the end of the term. At the option of the Note holder, interest payments may be made in the form of common shares at an issue price equal to the market price at the time of settlement.

All of the Notes pursuant to the financing will be subject to a 4-month hold period in accordance with applicable securities laws and stock exchange requirements.

The proceeds from this offering will be used to finance the fulfillment of existing and expected commercial orders; and for general working capital purposes.

In connection with this financing, MicroPlanet paid Dundee Securities Corporation ("Dundee") a finder's fee of $52,500 in cash, being 7 per cent of the value of the subscriptions arranged by Dundee and issued to Dundee note broker warrants for acquiring 308,824 shares of MicroPlanet at a price of $0.17 per share for a period of 24 months from the financing closing date. Two directors of MicroPlanet participated in this tranche for an aggregate of $288,000 of Convertible Notes.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in the United States. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an application exemption from the registration requirements.

About MicroPlanet Technology Corp.

MicroPlanet Technology Corp. is a smart grid, energy conservation company whose technology improves power quality and saves electric energy by the dynamic management of incoming voltage to a home or business. In commercial and residential building installations, MicroPlanet products have been proven to significantly reduce electric bills, maintenance costs and greenhouse gases. Installation of MicroPlanet products for utilities has improved utility services and facilitates the integration of renewable energy sources, including solar and wind, to the power grid. MicroPlanet is based in Seattle, WA and is listed on the TSX Venture Exchange (TSX-V) trading under the stock symbol: MP. MicroPlanet's website is www.microplanet.com.

    
    NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THE
    TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    

%SEDAR: 00020555E

SOURCE MicroPlanet Technology Corp.

For further information: For further information: MicroPlanet Company Contacts: Bruce Lisanti, President & CEO, Tel: (206) 625-0851, Fax: (206) 625-0999, blisanti@microplanet.com; MicroPlanet Investor Relations: Gerry Wimmer, INVESTORFILE.com, Tel: (416) 360-8895, Toll Free: 1-888-894-8222, gwimmer@investorfile.com

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MicroPlanet Technology Corp.

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