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| Cygnal Technologies wins injunction against James Taylor and Activo Inc. |
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| August 3, 2005 |
MARKHAM, ONTARIO, August 3, 2005 – Cygnal Technologies Corporation (TSX:CYN) (“Cygnal” or “the Company”) today announced that it has been granted an interlocutory injunction prohibiting former Cygnal employee and director James Taylor and his new company, Activo Inc., from unfairly competing with Cygnal.
Cygnal acquired Mr. Taylor’s business, Integrated Cable Systems, for approximately $17 million in August, 2000. Mr. Taylor remained an employee of the Company until his resignation effective March, 2004, and sat on the Company’s Board of Directors from 2000 until September 27, 2004.
In his decision dated July 21, 2005, Mr. Justice McMahon of the Ontario Superior Court of Justice made the following findings:
• as a director and high-level employee of Cygnal, Mr. Taylor owed fiduciary obligations to the Company;
• by keeping in his possession documents that contained sensitive information about Cygnal and its customers, and by competing directly with the Company starting only five months after resigning from its board, Mr. Taylor competed in an unfair manner; and,
• a reasonable period of non-competition in the circumstances is 12 months.
Mr. Justice McMahon therefore granted an injunction restraining the unfair competition, to remain in force until September 27, 2005, which will be 12 months after Mr. Taylor’s departure from the Company’s Board.
“We are pleased that the court has effectively halted the unfair competitive practices of a former employee,” said Gerald Hurlow, Cygnal’s Chairman and Chief Executive Officer. “We will continue to forcefully protect our legal rights in any similar situations that may arise.”
About Cygnal
Cygnal Technologies Corporation is a leading Canadian provider of network communication solutions including the design, installation, maintenance and management of wired and wireless communication networks. The Company offers a full range of technologies and solutions for service providers and enterprise customers. Cygnal has expertise in voice, video and data solutions over traditional and next generation converged technologies.
Cygnal Technologies Corporation is headquartered in Markham, Ontario and supports end-user customers and business partners through 14 offices across Canada, including Vancouver, Edmonton, Calgary, Winnipeg, London, Burlington, Brampton, Toronto, Sudbury, Ottawa, Montreal, Quebec City and Halifax. Cygnal common shares are listed on the Toronto Stock Exchange under the symbol CYN.
No stock exchange or regulatory authority has approved or disapproved of information contained herein. Certain information included in this news release is forward-looking and is subject to important risks and uncertainties. When used in this news release, the words "believe", "intend", "estimate", "expect", "plan" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are based on current expectations. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things, the impact of price and product competition, the ability of the Corporation to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner, general industry and market conditions and growth rates, the impact of consolidations in the telecommunications industry and stock market volatility. For additional information with respect to certain of these and other factors, see the reports filed by Cygnal Technologies with applicable Canadian securities administrators. Cygnal Technologies disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact:
David Horsley
Senior Vice President
and Chief Financial Officer
Cygnal Technologies Corporation
905-944-6500
jcodispodi@equicomgroup.com
Jeff Codispodi
Investor Relations
The Equicom Group Inc.
416-815-0700 ext. 261
dhorsley@cygnal.ca
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| http://www.cygnal.ca/docs/CYNTaylorAug3-05.pdf |
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