Fareport Capital Inc. - Press release

TSX-V symbol: CAB   

TORONTO, April 14 /CNW/ - Further to the press release issued by Fareport
Capital Inc. (the "Company") on February 15, 2005, the Company's Board of
Directors wishes to report on the investigations it has undertaken. Although
these investigations are still ongoing, the Board of Directors has now
determined that the Company has been the victim of serious malfeasance,
involving persons, including senior officers, formerly in the employ of the
Company and other individuals not employed by the Company.
The full extent of, and responsibility for, the activities that are the
subject of the internal investigation have yet to be determined. The Company
is seeking clarification and explanation from certain of its former employees
regarding activities that were carried on without the knowledge of the
Company's Chief Executive Officer or of other members of its Board of
Directors.
The Company has retained Fasken Martineau DuMoulin LLP to advise it in
its review. It has also notified the Company's independent auditors of the
significant irregularities that have come to light and serious malfeasance it
has discovered.
The findings to date lead the Company to believe its reported revenues
and earnings in certain prior periods have been understated and that its
losses have been similarly overstated, although the actual extent of variance
remains to be determined. In addition, the Company's prior public disclosure
as it relates to the matters under investigation, including certain non-
disclosed related-party transactions, may be incomplete or inaccurate in
material respects.
The Company has reported its findings to the appropriate regulatory
authorities who are now conducting their own investigations with the
assistance of Company management. The Company intends to pursue all
appropriate avenues of recovery in respect of any and all amounts wrongfully
taken or diverted from the Company, as well as Company opportunities
wrongfully appropriated by insiders, including recovery by way of civil
proceedings. However, the extent and timing of any recovery is uncertain at
this time.
The Company will provide further information as appropriate.

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                      adequacy of this release.