MONTREAL, June 10, 2005 - Madison Imports and its president, Mr. Chaïm (Charles) Freund, signed an agreement on June 2, to use environmental protection alternative measures as set out in subsection 296(1) of the Canadian Environmental Protection Act, 1999 to answer to charges of having contravened to paragraphs 272(1) a) and b) of the same law. Between the months of April and September 2002, the Madison Imports Company and its president illegally imported and sold streamers in aerosol containers bearing the brand name "Party Crazy String". These cans contain a propellant composed mainly of CFC-11 and CFC-12. Scientific studies, conducted by several researchers throughout the world, reveal that the increase in CFC (chlorofluorocarbon) emissions in the atmosphere contributes to the depletion of the ozone layer. This layer acts as a protective barrier against the noxious effects of the sun's ultraviolet rays on the planet's living organisms. The depletion of the ozone layer contributes to the increase in skin cancer among humans. The sale and importation of these products contravenes to the Ozone-depleting Substances Regulations, 1998, under the Canadian Environmental Protection Act, 1999. In this case, Environment Canada suggested that the defendant participate in the Environmental Protection Alternative Measures program. The alternative measures agreement requires the implementation of an operational procedure and management policy specific to the company with respect to the prohibition of the manufacture, importation and sale of products containing CFCs; the writing and publication of an article in an information bulletin of the Canadian Importers and Exporters Association; and the payment of a total of $15,000 to be deposited into the Environmental Damages Fund for damages caused to the environment. Under the alternative measures agreement, the defendants must meet the conditions set out within 18 months, failing which the case will automatically be brought before the courts. According to the Canadian Environmental Protection Act, 1999, Madison Imports and its president would then be liable to a fine of not more than $300,000 and to imprisonment for a term of not more than six months. These charges are pursuant to an investigation led by the Enforcement Branch of Environment Canada. -30- For more information, please contact: Anne Le Bourdais Communication Advisor Environment Canada, Quebec Region (514) 283-2343