PATC confirms terms to equity financing


    VANCOUVER, March 27 /CNW/ - Further to the news releases issued on
March 1, 2007, March 8, 2007 and March 22, 2007, Precision Assessment
Technology Corporation ("Precision") (TSX:PDT) confirmed today that the terms
of the US$12 million equity investment in Precision by Bison Capital Equity
Partners, a private equity fund based in Los Angeles, California ("Bison")
have been settled subject only to regulatory approval.
    The investment by Bison will provide for the issuance of US$12 million in
exchangeable preferred stock ("Preferred Stock") of a wholly-owned US
subsidiary of Precision ("Precision US"). Up to 50% of the Preferred Stock may
be redeemed by Precision US following the third anniversary date, and in
certain other circumstances, for a redemption price per share of US$1,000 plus
a dividend in such amount as is necessary to provide an internal rate of
return to Bison of 22% after taking into account any dividends previously
paid. Following the third anniversary date of the initial investment and
subject to certain limitations as to timing, any Preferred Stock not redeemed
by Precision US may be exchanged by the holder for common shares of Precision
("PATC Shares") on the basis of 4,348 PATC Shares for each one share of
Preferred Stock, subject to standard anti-dilution provisions.
    The initial investment by Bison will be US$8 million (8,000 shares of
Preferred Stock for a subscription price of US$1,000 per share) to fund the
acquisition of BC2 Environmental Corp. ("BC(2)"), a southern California
drilling company and to provide working capital. The second investment by
Bison will be US$4 million (4,000 shares of Preferred Stock on the same terms)
which is anticipated to close concurrently with the acquisition of an eastern
United States drilling services company.
    The investment by Bison also provides for the issuance of Precision Class
B preferred voting shares ("Class B Shares") to enable Bison to exercise
voting rights in Precision. Precision will issue 8,000 Class B Shares in
connection with the first investment and 4,000 Class B Shares in connection
with the second investment, at a price per Class B Share of US$0.01. Each
Class B Share will entitles the holder to 4348 votes in Precision. The Class B
Shares may only be transferred along with the Preferred Stock, and are
automatically redeemed upon exchange of the Preferred Stock.
    The proceeds of the equity investment will be used to fund two
acquisitions, to pay down existing debt and for general working capital and,
when completed, will add to Precision's management depth. The equity
investment and the acquisitions are subject to fulfilment of various
conditions, including shareholder and regulatory approval and receipt of
approval of the Toronto Stock Exchange ("TSX"). Precision is relying on
section 604(d) of the TSX Company Manual, which permits the Company to provide
the TSX with written evidence that holders of more than 50% of the PATC Shares
are familiar with the terms of, and are in favour of, the equity financing and
the acquisitions, in lieu of holding a shareholders meeting. The initial
investment and the acquisition of BC2 are anticipated to close on or about
March 27, 2007. The second investment and the acquisition of the eastern
United States drilling services company are expected to be completed on or
before April 30, 2007.

    About Precision - Precision provides drilling services for site
assessment and remediation and groundwater assessment, monitoring and
mitigation in the United States. These services are provided using specialized
and innovative drilling and sampling equipment and technologies from offices
in California and Florida. Precision Assessment Technology Corporation
operates through its wholly owned U.S. subsidiaries, Precision Sampling, Inc.
and Trenchless Specialties Inc. Further information can be found at Precision's common shares are listed on the Toronto
Stock Exchange under the symbol "PDT".
    If you wish to receive company press releases via email, please advise
Robert E. Nowack at

    FORWARD-LOOKING STATEMENTS: This news release contains statements which,
to the extent that they are not recitations of historical fact may constitute
forward-looking information under applicable Canadian securities legislation
or forward-looking statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995. Such forward-looking statements or
information may include financial and other projections as well as statements
regarding the Company's future plans, objectives, performance, revenues,
growth, profits, operating expenses or the Company's underlying assumptions.
The words "may", "would", "could", "will", "likely", "expect", "anticipate",
"intend", "estimate", "plan", "forecast", "project" and "believe" or other
similar words and phrases are intended to identify forward-looking statements
or information. Persons reading this news release are cautioned that such
statements or information are only predications, and that the Company's actual
future results or performance may be materially different. Such
forward-looking statements or information involve known and unknown risks,
assumptions, uncertainties and other factors that may cause our actual
results, events or developments, to be materially different from any future
results, events or developments expressed or implied by such forward-looking
statements or information. In the event that any of our assumptions prove to
be incorrect, or in the event that we are impacted by any of the risks
identified above, we may not be able to continue in our business as planned,
or at all. For a complete discussion of the assumptions, risks and
uncertainties related to our business, you are encouraged to review our
filings with Canadian securities regulatory authorities on SEDAR at

For further information:

For further information: Robert (Bob) E. Nowack, Chairman and Chief
Executive Officer, Precision Assessment Technology Corporation, Tel: (604)
669-3373 (Ext. 201)

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