Pareto terminates substantial issuer bid

    Offer withdrawn as conditions not satisfied

    TORONTO, Sept. 18 /CNW/ - Pareto Corporation (TSX: PTO), a leading
marketing services company, today announced that it has terminated its
previously announced offer to purchase up to 11,000,000 outstanding common
shares at a price of $1.00 per share as the conditions of the offer have not
been satisfied. The issuer bid circular dated August 14, 2008 specified that
Pareto could terminate the offer if, among other things, the S&P/TSX Composite
Index declined by an amount in excess of 10%, as measured from the close of
business on August 6, 2008. On September 17, 2008 the Index had declined 11.7%
since that date. Accordingly, the Board of Directors of Pareto has determined
that proceeding with the substantial issuer bid under the current market
conditions would not be in the best interests of Pareto shareholders.
    The credit facility negotiated to fund the share purchase remains
available and Pareto's management remains confident in the prospects for the
business and has seen no material deterioration from market conditions to
date. However, the Board has determined that the recent market turmoil and
uncertainty as to future market conditions necessitate the termination of the
    Pareto has notified the depositary of the withdrawal of the offer and
termination of the bid, and instructed the depositary to cease accepting
deposits of common shares tendered under the offer and to promptly return all
common shares deposited under the offer to date to the tendering shareholders.

    About Pareto Corporation

    Pareto Corporation is a marketing services company that offers marketing
execution solutions to leading companies in a broad range of industry sectors.
Pareto provides measurable, quantifiable services that complement our clients'
marketing and sales departments. For more information, please visit our
website at

    This press release contains forward-looking statements related to
expected future events and financial operating results of Pareto that involve
risks and uncertainties. Actual results may differ materially from management
expectations as projected in such forward-looking statements for a variety of
reasons, including market and general economic conditions and the risks and
uncertainties detailed from time to time in Pareto's SEDAR filings.

For further information:

For further information: Kerry Shapansky, President and Chief Executive
Officer, Pareto Corporation, (416) 790-2350; Karen Trudell, Chief Financial
Officer, Pareto Corporation, (416) 790-2360; Jeff Codispodi, Investor
Relations, Equicom Group, (416) 815-0700 ext 261

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