Encorp Pacific (Canada) reacts to lawsuit

On January 13th the Consumers' Association of Canada brought an action in the Supreme Court of British Columbia alleging unlawful acts and breach of trust by Encorp Pacific with regard to the use of unredeemed deposits and recycling fees on beverage containers.

It is Encorp's position that its use of unredeemed deposits and fees
charged to the brand owners is lawful, reasonable and transparent, and
approved by the Provincial Government when it accepted Encorp's Stewardship
Plan.

In 2000 Encorp voluntarily commenced publishing audited financial
statements of its activities. These annual reports are available to the public
on the website listed below and show how the Encorp system is financed and
operated.

For further information: Contact: Malcolm Harvey, Communications
Manager, Encorp Pacific (Canada), 1-800-330-9767