TORONTO, ONTARIO (TSX VENTURE: QVC) is pleased to announce that it has entered into secured loan agreements with a major Canadian financial institution for a CAD $5.0 million revolving operating credit facility and a CAD $2.0 million term loan. The term loan amortizes equally over a four year period following draw and has a floating and fixed interest rate option. QuStream will use the proceeds of the loans for general corporate purposes including working capital, financing potential acquisitions, capital expenditures and new product development.

QuStream is also pleased to announce that it has closed a non-brokered private placement of secured convertible debentures for CAD $2.0 million. The debentures bear an interest rate of 10%, are repayable on March 6, 2010 and replace the notes payable currently due August 9, 2008. The convertible debentures may be converted into common shares, at the option of the holders, at any time prior to the maturity date at $2.00 per share, subject to adjustment. The Company may also force conversion of the debentures, if the closing price of the Company's common shares is equal to or greater than $2.00 for twenty consecutive trading days, subject to adjustment. The Company has issued 1,000,000 common share two year purchase warrants to the holders of the debentures. The warrants become exercisable only if the convertible debentures are redeemed by the Company for cash prior to the maturity date. The securities issued and issuable in connection with the private placement are subject to a four month hold period until July 7, 2008.

The private placement of the debentures is subject to final approval of the TSX Venture Exchange.

"These financings will provide additional funds, with minimal equity dilution, and positions us to continue to grow QuStream," said Frederick L. Godard, Chairman, President and Chief Executive Officer of QuStream.

Forward-Looking Statements

The statements made in this press release that are not historical facts contain forward-looking information that involves risk and uncertainties. All statements which address QuStream's expectations should be considered forward-looking statements. Such statements are based on management's exercise of business judgment as well as assumptions made by and information currently available to management. These statements reflect our current view of future events and are subject to certain risks and uncertainties as contained in the Company's filings with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. We undertake no obligation, and do not intend, other than as required by law, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of any unanticipated events.

Contacts: QuStream Investor Contact: Frederick L. Godard Chairman, President and CEO (416) 385-2323 x 200 Email: Email: godard@qustream.com

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