Bluebear Network International (BLBR)

[million]

BLBR--BlueBear Announces Spin-off of Subsidiary


2007-05-11 08:00 ET - News Release

OTTAWA -- (MARKET WIRE) -- 05/11/07


BlueBear Networks International, Inc. (PINKSHEETS: BLBR) announced today that it will spin-off its wholly owned subsidiary, BlueBear, Inc. (a Wyoming corporation) with an effective record date of May 14, 2007 and will remain as a private company.

To be eligible and to receive spin-off shares, shareholders need to be bona fide shareholders in BLBR as of the record date of the dividends and be able to prove ownership of their BLBR shares if so requested by the Company prior to issuance of the spin-off shares. BlueBear, Inc. common stock received by registered BLBR shareholders as a result of the spin-off will be will be recorded in book-entry form by the company and the transfer agent exclusively. Holders will receive a letter of ownership from the Company indicating the number of shares credited to their account.

BlueBear Networks International, Inc. will not file a relevant Registration Statement with the Securities and Exchange Commission for the purpose of registering the BlueBear, Inc. common stock under the Securities Exchange Act of 1934. Shares of BlueBear, Inc. common stock will be issued and distributed immediately under the following restrictions and/or conditions:

1) The shareholders of the spun-off securities of BlueBear Inc. can only transfer the securities in specific, limited situations. To comply with this condition, the shares shall be restricted for two years and if a shareholder wishes to gift or transfer to immediate family member or to trust that beneficially benefits them then the shareholder shall seek approval from the Board of Directors of BlueBear, Inc.

2) The spun-off securities will have a legend on them that describes the above transfer limits; and

3) The spun-off subsidiary's stock transfer books include stop transfer instructions that indicate the above transfer limits.

BlueBear, Inc., the spun off private company will take over the development and marketing of LACE and IDLE BlueBear Networks International's two products.

About BlueBear Network International, Inc.

BlueBear Network International, Inc. (PINKSHEETS: BLBR) is a Nevada company based in Ottawa, Ontario, Canada. BlueBear, Inc. will continue to develop and market the world's first system LACE that automatically processes and categorizes media-evidence files from seized computer hard drives in child exploitation cases. LACE and a companion product IDLE, can search, and identify victims, suspects, & witnesses in police facial images databases located worldwide. For more information, visit http://www.bbninternational.com/.

This press release contains forward-looking statements as defined in the Securities Litigation Improvements Act of 1996. The words "believe, expect, estimate, and project" and similar expressions define forward-looking statements, which speak only as of the date the statement was made. BlueBear undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Forward-looking statements are currently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated in, or underlie the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the company's ability to meet its projected growth, the effects of government regulation, competition and other material risks.


Contact:
Sal Khan
CEO
[e-mail]
613-599-7766 x 26