Contact Image Corporation Announces a Private Placement

MONTREAL, June 6 /CNW Telbec/ - Contact Image Corporation (the
"Corporation" or "Contact Image") (TSX Venture Exchange: CI), announces that
it intends to proceed with the private placement (i) of common shares, at a
price of $0.15 per share, and warrants allowing their holders to acquire
common shares of Contact Image at a price of $0.20 per share for a period of
twenty-four (24) months following their issuance, for minimum gross proceeds
of $100,000 and maximum gross proceeds of $400,000, and (ii) of non-secured
convertible loans, for minimum gross proceeds of $100,000 and maximum gross
proceeds of $300,000, bearing interest at an annual rate of 12%, payable
monthly and maturing in three (3) years; the principal of the loan may be
converted in common shares of Contact Image at a price of $0.20 per share for
the first year, $0.24 per share for the second year and $0.27 per share for
the third year; subscribers to these convertible loans will also receive
214,505 warrants per $100,000 tranche of the principal allowing them to
acquire 214,505 common shares of Contact Image at a price of $0.30 for a
period of three (3) years.
It is expected that these private placements will primarily be made with
insiders of the Corporation. These private placements remain subject to
receipt of the required regulatory approvals.

Contact Image and its subsidiaries are providers of digital imaging
products and services based in Montreal. Current products and services
include, digital wide-format printing and finishing services, digital
processing and imaging services and traditional photographic processing and
imaging services. Contact Image and its subsidiaries service target market
segments that focus on retail chain stores, businesses, institutions,
photography professionals, imaging professionals and, finally, higher-end
photo amateurs. Contact Image and its subsidiaries' clients typically seek
higher quality prints, promptness of service and a large offering of imaging
services.

The TSX Venture Exchange has neither approved nor accepts any
responsibility with respect to the veracity or exactitude of this press
release.
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