MONTREAL, Nov. 9 /CNW Telbec/ - Priva Inc. (TSXV: PIV) announces that it has successfully completed the takeover of approximately $6,000,000 USD ($7.1mm CDN) in annualized sales of specific retail accounts from New Jersey based Philmont Manufacturing, a division of The Strongwater Group. Philmont is an Englewood, N.J. based company that designs, manufactures and distributes waterproof and absorbent textile products for both the young and the elderly, to retailers predominately in the U.S. Accounts that have been acquired by Priva pursuant to this transaction include such chains as J.C. Penney, Dillard's, and Bon-Ton, as well as many independent retailers. The delay in the completion of this transaction, previously announced on August 8, 2005, was a result of Philmont's bank taking greater financial control of all aspects of The Strongwater Group. Therefore, by Priva agreeing to immediately make payment in full at time of closing, instead of paying over a 12 month period as previously agreed, Priva was able to eliminate a payment to The Strongwater Group of an undisclosed amount of cash FOR GOODWILL and THE ISSUANCE OF 1,000,000 common shares from treasury valued at $Cdn 370,000. Priva is now simply purchasing inventory valued at $US 1,000,000 for $US 880,000. In addition to purchasing the discounted inventory, Priva HAS issued a total of one million, 5 year Sales Performance Warrants to Michael Rattner. These Warrants are exercisable at $Cdn 0.50 in Years 1 and 2, with an increase in the exercise price in each of the 3rd, 4th and 5th years of $Cdn 0.05 / year. Mr. Rattner has joined Priva as Executive Vice President OF Priva (USA) Inc. Prior to joining Priva, Mr. Rattner was the President of The Strongwater Group, where he played an integral role in the growth and cultivation of the retail accounts of the Philmont division. Mr. Rattner will not only ensure a smoother transition for the Philmont customers to Priva, but his 20 years experience with Philmont will add to the depth of Priva's management team. The inventory being acquired is required to fulfill the backlog of orders to be shipped to the retail accounts that Priva will be servicing. It is anticipated that this transaction will result in Priva almost doubling its sales to $Cdn 16 million in fiscal 2006. David Horowitz, Priva's President and CEO stated, "This acquisition is, by far, Priva's largest ever. We are confident that the acquisition of the Philmont accounts will contribute significantly to our earnings per share in 2006. The fit is perfect. At least 60% of our products are similar to those currently being offered by Philmont with less than a 5% overlap of customers". This transaction will transform Priva into becoming a dominant player in the engineered fabric, waterproof, absorbent textile product marketplace. Horowitz further states, "As a result of combining Philmont's customers and Priva's customers that will cater to the same infant and aging populations, this acquisition will focus on melding two similar firms, cutting out duplicative costs, and harvesting more profits. With the addition of over 400 active retail accounts in the USA, the benefit of this transaction provides Priva with a significant opportunity to sell Priva's products to Philmont's accounts and Philmont's products to Priva accounts". 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 U.S., 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.