EY

Solutions Extenway Inc. ("Extenway") (TSX VENTURE:EY) is pleased to announce
that it has agreed to undertake a prospectus-exempted private placement of
Convertible Debentures for a minimum gross proceeds of $3M and a maximum gross
proceeds of $6M (the "Offering"). Extenway is further pleased to announce that
it has received a signed subscription agreement from a major institutional fund
manager, pursuant to which the fund is committed to invest $1.5M in the
Offering, and that another investor has committed to invest $500,000 in the
Offering, subject to the terms and conditions set out herein. The Offering is
expected to close no later than November 1st, 2012 (the "Closing Date").


The Convertible Debentures will be unsecured, will mature on August 31, 2017 and
will bear an annual compounded interest rate of 12%. 


The Convertible Debentures will be convertible into common shares of Extenway
(the "Common Shares") at a conversion price of $0.13 if the conversion is
effected no later than at 5:00 pm on April 29, 2016, or $0.17 if the conversion
is effected thereafter, subject to customary adjustment provisions. 


In the event that, at any time after August 31, 2015, (a) Extenway issues Common
Shares at a price per share equal to or greater than $0.25 (subject to customary
adjustments), or (b) the Current Price (as defined in the Convertible Debenture)
of its Common Shares is greater than $0.30 (subject to customary adjustments),
Extenway will be entitled to buyback the Convertible Debentures prior to their
maturity date for a purchase price equal to the principal thereof plus all
accrued and unpaid interest thereon. The buyback right will be exercisable
pursuant to a prior written notice of at least 30 days prior to the closing of
same. 


Upon the occurrence of a liquidity event (which includes a merger, an
amalgamation, a reorganization, the sale of shares or any other transaction
resulting in a change of control of Extenway, or the sale of all or
substantially all of the assets of Extenway) (a "Liquidity Event") pursuant to
which:




a.  the conversion price of the Convertible Debentures is lower than the
    price per Common Share of Extenway determined pursuant to such Liquidity
    Event (the "Offered Price"), the Convertible Debentures will be
    automatically converted into Common Shares of Extenway at the applicable
    conversion price; 
    
b.  the conversion price of the Convertible Debentures is equal to or
   greater than the Offered Price, Extenway shall be entitled to cancel the
    Convertible Debentures by paying to the holders thereof an amount equal
    to the sum of: (a) the outstanding principal amount of such Convertible
    Debentures, (b) the accrued and unpaid interest thereon, and (c) a 3%
    penalty calculated on the outstanding principal amount of such
    Convertible Debentures.  



The proceeds of the Offering will be used for working capital purposes. The
private placement is subject to compliance with applicable securities
legislation and to the approval of the TSX Venture Exchange.  


It is anticipated that finder's fees in the amount of 5% of the gross proceeds
of certain placements under the Offering will be payable to registered
exempt-market dealers in connection with certain placements. These exempt-market
dealers will also be entitled to a maximum of 600,000 share purchase warrants to
purchase Common Shares of Extenway at a purchase price of $0.13 per Common Share
if exercised on or before the third anniversary of the Closing Date, or $0.17
per Common Share if exercised thereafter. The share purchase warrants will
expire on the fifth anniversary of the Closing Date. 


All Convertible Debentures and all underlying Common Shares which may be issued
to purchasers under the Offering will be subject to a four-month plus one-day
hold period from the Closing Date, pursuant to securities legislation and the
policies of the TSX Venture Exchange. The Convertible Debentures and all
underlying Common Shares offered in the Offering have not been nor will they be
registered under the United States Securities Act of 1933, as amended, or state
securities laws, and may not be offered or sold in the United States or to an
account for the benefit of US persons, absent such registration or an exemption
from registration.


About Solutions Extenway 

Extenway Solutions (TSX VENTURE:EY) provides technology solutions to the
healthcare sector. Among the services offered by Extenway are interactive
televisions, bedside patient terminals, Internet, entertainment, content
integration, advertising, education, and integrated solutions. Extenway allows
organizations to optimize the way they manage and coordinate interactions in the
areas of communications, information and entertainment. For more information,
visit www.extenway.com or follow us on Twitter @Extenway.


Disclaimer - Safe Harbour Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking
statements. These forward-looking statements relate to the future financial
conditions, results of operations or business of Extenway. These statements may
be current expectations and estimates about the markets in which Extenway
operates and management's beliefs and assumptions regarding these markets. These
statements are subject to important risks and uncertainties which are difficult
to predict and assumptions which may prove to be inaccurate. The results or
events predicted in forward-looking statements may differ materially from actual
results or events. Extenway disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise. In particular, forward-looking statements do not
reflect the potential impact of any merger, acquisitions or other business
combinations or divestitures that may be announced or completed after such
statements are made.

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