A resident of Simcoe county has been returned to jail today after being arrested by the Durham Regional Police. Arnold Guettler will continue to serve his sentence for violating the Securities Act.

He was sentenced to 5 months incarceration for violating the
Securities Act. Guettler has been at large since November 27, 2002, when the Court of Appeal dismissed his appeal. He was required to surrender into custody immediately. When he failed to surrender, a warrant for arrest and committal issued.

Between October 15, 1994 and January 10, 1997, Arnold Guettler, Neo-Form
Corporation and Neo-Form North America Corp. raised in
excess of $2 million dollars from the sale of shares and promissory notes to approximately 140 investors by means contrary to the Securities Act.

On July 9, 2001, Guettler was sentenced to 5 months in jail on each of three convictions under the Securities Act. The sentences were to be served concurrently. Neo-Form Corporation and Neo-Form North America Corp. were fined $5,000 in respect of each of three convictions under the Securities Act for a
total fine of $15,000 against each company.

On Feb. 5, 2001, the Defendants were found guilty of: (1) trading in
securities, namely shares and promissory notes issued by the Defendants, without being registered to trade in such securities; (2) trading in such securities without having filed a prospectus and (3) making representations that the shares of Neo-Form Corporation and Neo-Form North America Corp. would be listed on a stock exchange with the intention of effecting trades in such securities.

The Defendants were found not guilty of giving undertakings as to the future value of the shares of Neo-Form Corporation and Neo-Form North America Corp. to potential investors with the intention of effecting trades in such securities.

Arnold Guettler, Neo-Form Corporation and Neo-Form North America Corp.
appealed to the Divisional Court. The appeal against conviction and sentence was dismissed. On the same day Arnold Guettler, Neo-Form Corporation and Neo-Form North America Corp. sought leave to appeal to the Court of Appeal for the province of Ontario. Guettler was released on bail.