Richmond, BC (canadaTECH.INFO) - April 3, 2009 - CON-SPACE Communications Ltd. (TSX-V: CCB) announced today that it is proceeding with a private placement of 22,000,000 common shares at $0.05 per share for gross proceeds of $1,100,000, to Turret Oy Ab, its largest shareholder and secured lender.

CON-SPACE said the completion of the private placement is subject to completion of a proposed restructuring to address its current serious financial difficulties.

The restructuring is to include certain agreements with its bank to maintain its current credit facilities and, settlement and payout of security held by the vendors of Search Systems Inc.

CON-SPACE has a secured loan agreement with Turret with a principal balance of CDN $4,900,000, which is currently in default including with respect to the failure to pay the quarterly interest payment due March 31, 2009. Turret has made a second $50,000 interim loan to CON-SPACE as a further advance under the Turret loan agreement, pending completion of the private placement.

Proceeds of the private placement are to be utilized to pay out the vendors of Search Systems Inc, repay Turret the two $50,000 bridge loans and pay the overdue interest, with the balance for general working capital and costs associated with the financing and restructuring.

Turret currently holds 11,528,609 shares, representing 46.5% of the outstanding shares, and on completion of the private placement will hold 33,528,609 shares, representing 71.6% of the outstanding shares. As well, Turret holds warrants exercisable for 675,000 shares and holds conversion rights with respect to $4,800,000 of the principal amount owing under the Turret loan agreement. The conversion rights would be exercisable for a maximum of 13,750,000 common shares and if default conversion rates are applicable, the conversion rights would be exercisable for a maximum of 32,000,000 common shares.

"This transaction is a necessary step toward resolving the burden of a debt load and capital structure that has been negatively affecting the company for the past year. Operationally, we have made and continue to make progress toward completing our turnaround plan, even in the current economic downturn. This transaction is expected to put the company on firmer financial ground and assist us in our endeavours to meet our stakeholders' needs and allow for our operations to continue uninterrupted. We are fortunate that Turret has responded favourably to our request for additional financing during these difficult financial times," said Gordon Cook, President and CEO of CON-SPACE.

Richmond, BC based CON-SPACE is a leading designer and manufacturer of specialized voice communication equipment used by Police, Fire, Rescue, Government Agencies, Militaries, Municipalities and general industry.