Echo Energy Canada Inc. Responds to Dissident Circular
Energy Canada Inc. (TSX VENTURE: EEI) today responded to the dissident circular dated April 1, 2008 distributed by Salvatore Fuda and two companies over which Salvatore Fuda exerts considerable influence or control (the “Dissident Group”), in furtherance of Salvatore Fuda’s efforts to take control of the board of directors of Echo Energy.
The Company will be seeking to have certain of the issues raised in its Court Application against Salvatore Fuda, Challenge Gas Holding AB and Exclusive Asset Management Inc. decided before the shareholders meeting. For this purpose the Company will be seeking to have the Court adjourn the shareholders meeting until after the hearing of a trial of the issues. Regardless of whether the meeting is adjourned, your vote is important to the outcome of the meeting and we want to help you ensure that your vote is counted. To be sure your vote is counted, please return the YELLOW form of proxy by 5 p.m. Toronto time, on Friday April 18, 2008.
The Dissident Group’s goal is to place Echo Energy firmly under the control of Salvatore Fuda to the detriment of shareholders that are unrelated to Salvatore Fuda. However, shareholders should be aware of the following critical facts in casting their votes:
– There are serious questions about the legitimacy of the 11,016,618 common shares of Echo Energy that were acquired by Challenge Gas Holding AB.
– The deterioration in the value of Echo Energy’s common shares occurred while Salvatore Fuda and his son served on the executive team of Echo Energy and for most of such period, Salvatore Fuda’s nominees constituted a majority of the board of directors.
– Echo Energy has paid $1.5 million in connection with Salvatore Fuda and Joseph Fuda serving on Echo Energy’s management team and board of directors since 2004.
– Salvatore Fuda has an abysmal record creating shareholder value while serving as Chairman of Echo Power Generation Inc., Micromem Technology Inc. and Leader Capital Corp.
– Echo Energy has been forced to write down its entire investment in Echo Power Generation Inc., a company run by Dissident Group nominees Salvatore Fuda, Joseph Fuda and Charles Edey.
– Under the leadership of Salvatore Fuda and Joseph Fuda, the share price of Micromem Technologies Inc. has gone from a high closing price of US$21.37 on March 6, 2000 to US$1.80 as at April 9, 2008.
– According to insider filings, each of Salvatore Fuda and Joseph Fuda has sold millions of shares of Micromem.
– Under the leadership of Salvatore Fuda, the share price of Leader Capital Corp has gone from a high closing price of $1.85 per share on December 17, 2004 to $0.225 per share as at April 10, 2008.
The full text of the response letter dated April 10, 2008 along with the management information circular dated March 25, 2008 have been filed on SEDAR and mailed to shareholders and are available at www.sedar.com. Shareholders are encouraged to read both documents in their entirety for the full text of the reasons to support management and vote against the Dissident Group.
The Dissident Group’s goal of placing Echo Energy firmly under the control of Salvatore Fuda is not in the best interest of Echo Energy shareholders that are unrelated to Salvatore Fuda. Echo Energy urges shareholders to vote for the nominees of management, as set out in the YELLOW form of proxy or voting information form. The deadline for receiving your vote is 5 p.m., April 18, 2008.
Please contact Echo Energy’s proxy solicitor, Laurel Hill Advisory Group, at 1-866-378-3620 for assistance in voting your YELLOW proxy, or if you have previously voted using the blue proxy, you can change your vote by signing and sending a later dated YELLOW proxy now.
About Echo Energy
Echo Energy is a publicly traded energy company with revenue producing natural gas production operations near Port Burwell Ontario, Canada on the shores of Lake Erie.
Issued Common Shares: 60,208,086
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Echo Energy Canada Inc. Mr. Gary Conn President & C.E.O. (519) 455-6061 Email: gconn@echoenergycanada.com Website: www.echoenergycanada.com Retail Investor Inquiries AGORACOM Investor Relations Email: EEI@agoracom.com Website: www.agoracom.com/IR/EchoEnerg
SOURCE: Echo Energy Canada Inc.
