MONTREAL, July 19 /CNW Telbec/ - Contact Image Corporation (the "Corporation" or "Contact Image") (TSX Venture Exchange: CI), announces that it has concluded two private placements, in part with insiders, for gross proceeds of $300,000. The private placements are (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 gross proceeds of $200,000, and (ii) of non-secured convertible loans, for gross proceeds of $100,000, 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. The securities issued pursuant to this private placement are subject to a restriction and cannot be alienated for a four (4) month period following their issuance. 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.