In-Touch Survey Systems Ltd. to acquire Tenox Appraisal Systems Inc.

OTTAWA, Aug. 29 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch"
TSX-Venture: INT.V) announces that it has signed a Letter of Intent to acquire
100% of Oakville-based Tenox Appraisal Systems Inc. ("Tenox") for $400,000 in
cash, paid proportionately and quarterly over three years, and eight million
common shares escrowed and released proportionately and quarterly over the
next three years. After closing Tenox shareholders will hold approximately 16%
of In-Touch common shares.
Tenox, a Canadian Mystery Shopping leader, is a private family controlled
company originally founded in 1987 by Brian Cavanagh. His son, Sean Cavanagh,
is the current CEO and majority shareholder. Tenox has its head office in
Oakville and a satellite office in Montreal.
"The addition of Tenox will more than double In-Touch revenues in the
next year and adds a complementary set of products and customers to our
current product offering. The Oakville and Montreal offices will also provide
In-Touch with greater geographic coverage for key Canadian customers," said
Michael Gaffney, CEO of In-Touch and federal Liberal Candidate for Nepean-
Carleton.
"Since our acquisition of In-Touch in September 2004 we have worked hard
to restructure internal operations and create and implement a new market
strategy with new products. These new initiatives have paid off as In-Touch is
now close to having a positive net income. Excluding non-cash expenses, the
Company has generated positive cash flows for the first two quarters of 2005.
The Tenox customer base of major Canadian retailers does not overlap with
current In-Touch customers providing a great opportunity to cross sell and
increase 'customer share' and ultimately revenues", said Gaffney.
"In-Touch is the perfect partner for an entrepreneurial company like
Tenox," commented Sean Cavanagh, CEO of Tenox. "In-Touch's technology-based
tools will enhance our ability to service our clients and contribute to their
leading positions as customer-centric organizations. The combination of
complimentary services presents tremendous opportunities, not only for us, but
also for our clients, their customers and shareholders. We look forward to our
future with In-Touch as we build upon our strategic focus to provide retailers
with best-in-class performance measurement solutions," said Sean Cavanaugh,
CEO of Tenox.

About Sean Cavanaugh

Cavanagh brings to In-Touch a concentrated business background with more
than 15 years in the retail industry. Sean has worked with major Fortune 500
companies to develop front-line performance measurement programs and service
strategies. He has been the President and CEO of Tenox Appraisal Systems for
the past 7 years. His extensive experience has seen him develop long term
relationships with many of Canada's leading retailers. He holds an MBA from
Queen's University.

About Tenox

Tenox provides a range of services and programs suited specifically to
retail organizations with front line demands based on industry's best
practices.
As Canada's leading Mystery Shopping provider, we help many of the
largest and most successful companies understand and improve their marketplace
performance.
Mystery Shopping is observational research, reporting on the facts that
take place during a customer's experience. Building these facts into
actionable data, whether it be motivating frontline performance with
incentives and awards or reinforcing training strategies to meet stated
objectives, Mystery Shopping programs have been a successful tool used by
retailers for many years.
Our field force of shopping correspondents are capable of covering every
area of the country. They evaluate banks, restaurants, grocery & convenience
stores, cinemas, clothing stores, gas stations & department stores, in fact
anywhere service is an integral part of the customer experience.
Our clients tailor these evaluation programs to their unique business
needs. The information provided allows them to take action and improve
performance when needed. www.weshop4u.com

About In-Touch

In-Touch technology-based survey products, logistical support services
and integrated survey reporting enables companies to improve their business
performance by capturing, analyzing, reporting and acting on customer and
employee feedback. In-Touch makes doing surveys painless - whether customers
have two locations or 2,000, 50 employees or 50,000, whether the client is a
full-service market research firm a corporation, association or government
organization. www.intouchsurvey.com

This acquisition may be subject to a number of conditions, including but
not limited to, TSXVE acceptance and shareholder approval of the Company. This
acquisition cannot close until the required approvals are obtained and there
can be no assurance that this acquisition will be completed as proposed or at
all.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved the
contents of this press release.
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