SAR Saratoga Electronic Solutions

Saratoga Electronic Solutions Inc. (the "Corporation")(TSX VENTURE:SAR). The
Corporation announces that it has entered into an agreement to sell its
subsidiary Distributions Car-Tel Inc. ("Car-Tel") to a member of the management
of Car- Tel for a purchase price of approximately $1.36 million, to be paid
through a combination of cash and the assumption of certain specified
liabilities. Car-Tel is in the business of distributing to consumers
point-of-sale activated prepaid cellular telephone PINs and long distance
calling cards, and offering to retailers a variety of electronic gift card
solutions. This transaction results from the previously announced strategic
review undertaken by the Corporation.


Closing of this transaction is subject to the negotiation and execution of
definitive transaction documents, as well as the receipt of all requisite
regulatory approvals, and is expected to occur in the Corporation's second
quarter.


About the Corporation

In addition to its prepaid products business, the Corporation also places and
operates a network of automatic teller machines in Eastern Canada through its
subsidiary Saratoga ATM Corporation Inc.


Forward-Looking Statements

This news release contains certain forward-looking statements concerning our
future operations, economic performance and financial condition and our proposed
sale of Car- Tel. These statements are based on certain assumptions and analyses
made by us in light of our experience and our perception of historical trends,
current conditions and expected future developments, as well as other factors we
believe are appropriate in the circumstances. However, whether actual results
and developments will conform to our expectations and predictions, and whether
we are ultimately successful in consummating the sale of Car-Tel, is subject to
a number of risks, uncertainties and assumptions, including our ability to
successful conclude definitive documentation and obtain the requisite approvals
in connection with such sale, as well as those discussed in our Annual
Information Form and Management's Discussion and Analysis. Consequently, all of
the forward-looking statements in this news release are qualified by these
cautionary statements, and there can be no assurance as to the Corporation's
ability to consummate the sale of Car-Tel or as to the Corporation's ability to
enhance shareholder value through this process. Moreover, there can be no
assurance that the results or developments anticipated by us, including as
regards our financial resources, will be realized or, even if substantially
realized, that they will have the expected consequences to or effects on us and
our subsidiaries and their business or operations. We undertake no obligation
and do not intend to update or revise any forward-looking statements, whether as
a result of new information, future events or otherwise, except as may be
required under applicable law.

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