Softchoice Signs Increased Secured Credit Facilities

TORONTO, Feb. 2 /PRNewswire-FirstCall/ – Softchoice Corporation (TSX: SO) (Softchoice or “the Company”) is pleased to announce that it has entered into long-term credit agreements with Bank of America, N.A. and HSBC Capital (Canada) Inc. to provide Softchoice with access to up to C$140 million in debt financing, replacing its existing Asset-Backed Loan (ABL) and short term debt.

    The new capital structure includes:

    -  a three-year C$115 million revolving ABL facility funded by:
       -  Bank of America, as agent, with syndicate participation from the
          Bank of Montreal and TD Asset Finance
    -  a five-year C$25 million term loan funded by HSBC Capital (Canada)
       Inc. with participation from Ontario Teachers' Pension Plan.

A portion of the proceeds from this financing has been used to repay the Company’s previous credit facilities, including a US$45.0 million term loan and US$21.3 million outstanding under the revolving credit facility. On closing, the ABL facility has more than $40 million of unutilized capacity in its credit lines.

“These expanded credit facilities provide Softchoice with a cost effective structure to meet the Corporation’s capital requirements,” noted Anne Brace, Softchoice’s Chief Financial Officer. “With these agreements in place, we can continue to pursue our long term growth objectives with the knowledge that the capital needed to fund our success is in place.”

Softchoice Announces Fourth Quarter Earnings Conference Call Details

Softchoice will be hosting a conference call to discuss its 2008 fourth quarter results at 11 a.m. ET on February 11th, 2009.

David MacDonald, Softchoice’s President and CEO, and Anne Brace, Softchoice’s Chief Financial Officer, will host the call. The conference call will begin with a brief presentation followed by a question-and-answer session.

To participate in the conference:

Conference ID: 7548147

Local/International: 416-849-6186

North American Toll-Free: 866-443-4184

To view the Web presentation: http://events.snwebcastcenter.com/softchoice/20090211/

To ensure participation, please dial in five to 10 minutes prior to the start of the conference at 11 a.m. ET.

For those unable to attend the call, a link will be made available on the Softchoice website to an archived web and audio version on February 12th, 2009.

About Softchoice

As one of North America’s leading providers of technology solutions and services, Softchoice helps businesses and organizations of all sizes to select, acquire and manage their software and hardware technology resources. Softchoice offers a full range of capabilities, including face-to-face consultations and IT asset management services designed to help customers save time, money and risk in IT procurement. Softchoice currently has 973 employees operating from 45 branch offices located in major cities across the U.S. and Canada. Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the trading symbol “SO.” The Common Shares of Softchoice are not registered under the U.S. Securities Act of 1933 and are not publicly traded in the United States.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, the Company’s intention to repay its outstanding credit facilities and other expectations, intentions and plans contained in this press release that are not historical fact. When used in this press release, the words “intend”, “anticipate,” “expect”, “will’ and similar expressions generally identify forward-looking statements. These expectations are subject to a number of risks and uncertainties, including the current economic credit environment and other risks and uncertainties, many of which are set out or incorporated by reference in the Company’s latest Annual Information Form. Due to the many risks and uncertainties, Softchoice cannot assure that the forward-looking statements contained in this press release will be realized.

SOURCE Softchoice Corporation