Priva purchases accounts from major competitor

MONTREAL, Aug. 5 /CNW Telbec/ - Priva Inc. (TSXV: PIV) today announced
that it has entered into a Letter Of Intent to acquire a list of retail
accounts from New Jersey based Philmont Manufacturing, a division of The
Strongwater Group for an undisclosed amount. The accounts being acquired have
annual sales of approximately $6,000,000 USD ($7.27mm CDN). This would result
in Priva almost doubling its sales to $16 million Cdn. in the next fiscal
year. Philmont manufactures and distributes a variety of waterproof and
absorbent textile products for both the young and the elderly. This
acquisition is, by far, Priva's largest ever, which is anticipated to almost
double its sales in the next fiscal year and contribute significantly to its
earnings per share. For the three months ending March 31, 2005 Priva generated
$2,267,818 in sales with $94,111 in after tax earnings. Priva currently has
17,242,858 shares issued and outstanding and 19,479,048 issued and outstanding
on a fully diluted basis.
Priva will pay for the acquisition by issuing a total of one million
shares from treasury and one million 5 year Acquisition Warrants plus an
undisclosed amount of cash. The Acquisition Warrants will be exercisable at
$0.50 CDN in years one and two, with an increase in the exercise price in each
of the 3rd, 4th and 5th years of $0.05 / year. The cash component of the
acquisition will be paid for by Priva from working capital. This arms' length
transaction will be closing in the month of August with an effective date of
August 1, 2005.
The acquisition of this customer list provides Priva with products that
have an approximate 60% overlap with those products that Priva sells, and only
a 5% overlap in retail customers. "With the addition of over 200 retail
accounts in the USA, the benefit of such a transaction provides Priva with a
significant opportunity to sell Priva's products to Philmont's accounts and
Philmont's products to Priva accounts", says David Horowitz, President and
C.E.O., Priva Inc. This acquisition will also provide a combined purchasing
power that will improve relations with suppliers through service and pricing.
Priva is confident that the product development of the combined operation will
optimize manufacturing efficiencies, resulting in greater returns and expanded
new product lines.
This acquisition will strengthen Priva's Balance Sheet and will further
position Priva to fund additional acquisitions. This transaction truly marks
the beginning of a new era of growth and profitability for Priva.

Montreal based Priva Inc. is a leading manufacturer, distributor and
marketer of an assortment of absorbent, waterproof textile products sold to
retailers in Canada, the US, the UK, Australia and New Zealand, with export
sales representing just over 60% of sales. Priva's products for adults are
sold under the Priva and Americare(TM) labels, children's products are
marketed under the "Snoozy(TM)" and "Tidy Turtle" brand names and Priva's  
anti-allergen products are sold under the Quroum(TM) and Zip & Block(TM)
labels.

Certain statements in this press release may be forward looking, and
these statements involve known and unknown risks that may cause the Company's
actual results, performance and achievements to be materially different from
any performance or achievements expressed or implied by such forward looking
comments.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of release.