Kelman Technologies Inc. Completes Financing

    Stock Symbol: KTI.TSX

    CALGARY, June 27 /CNW/ - Kelman Technologies Inc ("KTI") is pleased to
announce that the Corporation has issued a secured $1,850,000 non-convertible
debenture to Epstein Enterprises Inc., a company controlled by Seymour
Epstein, who is Chairman of the Board of KTI and the controlling shareholder
of KTI. The debenture will earn interest at a rate of 6.5% per annum and is
due on June 27, 2011. In connection with the subscription for the debenture,
Seyco Operations Limited, an affiliate of Epstein Enterprises Inc., received
3,700,000 share purchase warrants. Each warrant entitles the subscriber to
purchase one common share of the Corporation at a price of $0.18 per common
share until June 27, 2011. The capital will be used by Kelman to repay
existing indebtedness of approximately $490,000 to Video Age, a company
controlled by Mr. Epstein, to provide additional capital to fund growth
opportunities in Kelman's data management business and for general corporate
purposes. Over the course of the past year Kelman has won three large data
management contracts, two in Canada and one in the US, each of which represent
a multi-year contract and will require capital investment in the first year of
these contracts.
    Mr. Epstein, after closing of this transaction, beneficially owns
15,614,360 or approximately 37.5% of the Corporation's issued and outstanding
common shares. Mr. Epstein also beneficially owns securities convertible into
13,228,058 common shares. On a fully diluted basis, Mr. Epstein would own
49.75% of the issued and outstanding shares of KTI.

    Kelman Technologies Inc. is a publicly traded Canadian company listed on
the Toronto Stock Exchange under the trading symbol "KTI". With offices in
Calgary and Toronto, Canada, Denver, Houston, and Oklahoma City,
United States, London, United Kingdom and Tripoli, Libya, KTI services oil and
gas exploration companies with a full suite of seismic processing and on-line
data management and data archival services.

    To the extent this press release includes forecasts or forward-looking
statements about future performance of the company such forecasts or
statements are believed to be reasonable by the company but are based upon
assumptions in respect of commodity pricing and oil and gas exploration
activity levels over the next couple of years. The risks associated with
future events are mitigated where possible by KTI but are uncontrollable and
no guarantee of the accuracy of the forecasts or future financial performance
of the company is offered.

For further information:

For further information: please visit our web site at contact Mr. Rene VandenBrand, President and CEO at
(281) 293-0537, or by email to

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