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Press Release - March 20, 2002


 

Second Tranche Debt Repayment $1Million Repaid
Total Debt Repaid Now $2million

CALGARY, AB, March 20, 2002 - XENTEL DM Incorporated (CDNX:XDM), North American specialty entertainment and relationship marketing company has continued to repay its long term debt ahead of schedule by making additional payments to reduce the subordinated debt by $1,000,000 to $3,250,000.

This debt is scheduled for repayment in May 2004; however, with the continuing improvements in profitability and cash flow, Xentel was in a cash position to make another $1,000,000 repayment in advance of the Company’s contractual commitment. This total debt reduction will have the effect of reducing interest costs by over $240,000 annually or $0.01 per share.

The debt was initially incurred to make the US acquisition in 1999. With the profitability of the US operations, the debt reduction is being funded from US cash flows. As mentioned earlier the Company intends to continue early retirement of the long term debt throughout the year as cash flow permits.

The debt holder also holds 2,200,000 warrants which have an exercise price of $1.48 per share, increasing in exercise price by $0.25 per share on each May anniversary date until 2004 at which time the debt is finally due.
 
XENTEL DM Incorporated is one of North America’s leading relationship marketing concerns and producers of cause related entertainment events. The Company’s success is attributable to proprietary sales tools including technologically advanced teleservices and sophisticated customer databases. XENTEL DM Incorporated has over 300 clients and 1,800 employees in 22 offices across North America, has been profitable 22 years of its 23 year history and is traded on the Canadian Venture Exchange under the symbol XDM.

The Canadian Venture Exchange has neither approved nor disapproved of the contents of this announcement.

For more information, please contact:


Caren Holtby
Investor Relations

Tel: (866) 204-9861
Fax: (416) 633-4643
carenh@xentel.com


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