NGRAIN Expands Operations in the United States - Establishes Office in Washington D.C. and Hires Senior PeopleSoft Executive to Manage Region

Move supports new defense contracts and growing interest in NGRAIN Product Knowledge Management solutions

VANCOUVER, BC — June 22, 2004 —NGRAIN® Corporation announced today that it has expanded its sales and support capabilities in the United States, to more effectively leverage growing demand for its interactive 3D Product Knowledge Management solution and real time interactive simulation technology in the aerospace & defense market. To meet this demand for expansion, a senior team with significant experience in the defense sector has been hired and appointed to the Washington, D.C. region.

Donald Arnold, former Director of Business Development, PeopleSoft Federal, will lead a newly appointed NGRAIN regional team and manage the company's business with the United States Federal Government. Mr. Arnold brings to NGRAIN 27 years of experience in U.S. Federal IT solution selling, and was responsible for a number of multi-million dollar contracts with the U.S. Department of Defense (DOD).

"We continue to invest in NGRAIN's infrastructure both in the U.S. and Canada, to allow us to effectively grow while maintaining the world-class support our customers expect from us," says Paul Lindahl, President and CEO of NGRAIN. "By assigning regional resources to key accounts and markets, we also improve efficiencies and enhance NGRAIN's competitive position."

"We're excited to have Don on our team," says Gabriel Batstone, General Manager, NGRAIN Product Knowledge Management. "His extensive experience with the U.S. Federal Government brings significant value to our customers, and strengthens our ability to effectively address and support growing opportunities as we continue to advance NGRAIN's position in the defense sector."

"There is no question that interactive 3D is the future of training and communication in the defense sector, and NGRAIN is leading the charge with a unique solution," says Donald Arnold, General Manager, Federal Sector, NGRAIN Product Knowledge Management. "The Washington, D.C. team and I are extremely excited about this opportunity, because NGRAIN interactive 3D visualization products are leading a revolution in how information about complex equipment and machinery is communicated. It's simply a better way to do business; there is an immediate return on investment and enhancement to mission effectiveness."

The NGRAIN Product Knowledge Management software solution enables organizations in aerospace & defense, and manufacturing to accelerate equipment assembly and maintenance procedures, and reduce equipment downtime, by enabling them to provide critical product and procedural information to users in the field, whenever and wherever they need it. The solution also helps improve communication about complex equipment and machinery in presentations, training courseware or documentation, giving the organization a significant new edge.

About NGRAIN
Founded in July 2000 and based in Vancouver, BC, NGRAIN is a privately-held company that designs, develops and markets interactive, 3D visualization and simulation software tools. The company's Product Knowledge Management solution enables organizations in the aerospace, defense, automotive, and manufacturing sectors to communicate complex product or equipment information more effectively, on common computers. NGRAIN's product portfolio also enables interactive 3D visualizations and real-time simulations for geospatial and medical applications.

In addition to its headquarters, NGRAIN's sales and support infrastructure includes field offices in Ontario, Quebec, Texas and Virginia. More information can be obtained at www.ngrain.com.

For additional information, please contact:

Rebecca Chamberlain, Environics Communications for NGRAIN
203-325-8772, rchamberlain@environics-usa.com

Lawrence Cummer, Environics Communications for NGRAIN
416-969-2747, lcummer@environicspr.com