Gandalf Technologies Inc., Gandalf Canada Ltd. and Gandalf Systems Corporation

Gandalf Technologies Inc., Gandalf Canada Ltd. and Gandalf Systems Corporation remain in active proceedings under the Companies' Creditors Arrangement Act before the Ontario Superior Court of Justice (Commercial List), court file 97-CV-2522, with Deloitte Restructuring Inc. as Monitor on the application of Gandalf Technologies and Gandalf Canada. Royal Bank of Canada, the Class I secured creditor under both the GTI and GCL Plans, has been repaid in full out of realizations from GTI, GCL and GSC under its first-ranking security on US$12.6 million; it also advanced a US$1.5 million DIP and CDN$1.5 million interim credit facility ranking behind a CDN$1.4 million Employee Retention Plan Charge. Class II secured creditors were paid in full through CDN$25,000 in distributions, and four landlords' abandoned-premises claims of US$150,000 were paid in full. Interim distributions of 20 cents on the dollar went out on 12 November 1999. Class V qualifying debenture holders, entitled to $2.00 each, have received nothing.