Carma Provides Update on Progress of the Acquisition of Synergex

TORONTO, Canada – Carma Financial Services Corporation (CARMA), provides the following update on the status of its previously announced proposed acquisition of Synergex Group Inc. (Synergex), the current share trading halt, and the appointment of a sponsor for the proposed acquisition.

On October 25, 2004 CARMA issued a press release announcing that it had entered into an agreement under which it will acquire all the issued and outstanding shares of Synergex. Synergex is a Mississauga, Ontario-based corporation and a leading technology-based business services provider.

Through its Commercial Gateway, Synergex serves the computer entertainment and other industries, and the company’s comprehensive menu of services includes supply chain management, payment reconciliation and processing, administrative services, logistics services, and digital art and linguistic services.

In addition, Synergex’ Technology Management operation, which constitutes a recently (May 2004) added set of solutions within Synergex, include the design, building, and provisioning of clients’ technology staff augmentation and technology infrastructure for manufacturing and financial services sectors.

Pursuant to the rules of the TSX Venture Exchange, this transaction would result in a “Change of Business”. In addition, since Synergex is owned by Ontario resident David Aiello, who is a director, senior officer and a significant shareholder of CARMA, the proposed acquisition constitutes a “related party transaction” for purposes of Ontario Securities Commission Rule 61-501.

TSX Venture Exchange rules required that the trading of CARMA’s shares be halted upon the announcement of the proposed acquisition. The rules have specific requirements for information to be presented to the Exchange for trading to be reinstated.

David Aiello, the Chief Executive Officer, comments “It is our view that it is preferable that the coordination of the lift of the halt trade by the Exchange be done coincident with the public filing of the management information circular to be provided to shareholders in connection with the shareholder meeting to be held to consider this acquisition. In this way, investors will have detailed information about Synergex and the proposed acquisition when they trade our stock”.

This transaction is expected to provide a larger cash flow as a combined entity; provide enhanced access to public equity markets and for raising capital in the future; create a larger, more balanced entity with a more diversified asset base; provide the potential for greater liquidity for shareholders; and increase the competitive positions of Synergex and CARMA in their given industries as a result of their increased size and public company status.

I n connection with this proposed acquisition CARMA has engaged Wellington West Capital Inc., a leading provider of personal investment services and corporate finance services, as its Sponsor for the TSX Venture Exchange.

CARMA is a provider of Business to Business accounts receivable management services including business information, accounts receivable recovery and asset based financing through its wholly owned subsidiaries and divisions: Canada Bonded Attorney, Lumbermen’s Credit Bureau and Mercantile Credit Bureau. CARMA is quoted on the TSX Venture Exchange under the symbol CFS.

Some of the statements contained in this news release may be forward- looking statements such as the Company’s future plans, objectives and goals. The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties which could cause actual results to vary considerably from these statements. Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and disinterested Shareholder approval. The transaction cannot close until the required Shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of CARMA should be considered highly speculative.