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Mr. Grant Robertson, B.B.A., Chairman of the Audit Committee reports,
KAMLOOPS, B.C. - Audiotech Healthcare Corporation (AUD:TSX Venture Exchange) is pleased to announce that its Audit Committee has engaged Vancouver-based MacKay LLP Chartered Accountants as the company's auditor for fiscal 2005.
The Audit Committee was displeased with the escalating fees and reduction in service provided by its previous audit firm, KPMG LLP. Following a dramatic escalation in audit fees in fiscal 2004, KPMG had proposed a substantial further increase in audit fees for fiscal 2005 which the Audit Committee determined was excessive and unreasonable. Accordingly, during the spring of 2005, the Audit Committee set out to interview prospective audit firms and solicit quotes from those meeting the Committee's strict criteria. All of the quotations received were substantially below the level quoted by KPMG for the fiscal 2005 audit, thereby confirming the Audit Committee's evaluation of the former auditor's fiscal 2005 audit fee proposal.
MacKay LLP was selected by the Audit Committee due not only to its audit fee quotation, but also due to its extensive experience with public company clients and accelerated audit timeline (this should improve the timeliness of year-end financial reporting to shareholders and management).
The Audit Committee would like to emphasize that the change of auditors was not undertaken as a result of a disagreement between Audiotech and the former auditors regarding any audit-related matter. The decision is solely a result of what the Audit Committee believes was an unreasonable escalation in audit fees and a corresponding decline in service received from the former auditor.
MacKay is one of Western Canada's largest audit and accounting firms, with 27 partners and principals and in excess of 170 professional and support staff. MacKay LLP and its related companies provide professional services to clients in many industries and sectors, including the entertainment industry, the forest industry, oil and gas, automotive, municipalities, government organizations, and all forms of First Nation organizations and enterprises.
The company's shares are listed and posted for trading on Tier 1 of the TSX Venture exchange under the symbol "AUD." For more information on the company, contact Osvaldo (Ozzie) Iadarola, President & CEO, at (250) 372-5847, or Doren Quinton of QIS Capital, investor relations, at (250) 376-8989, or visit the company's website at www.audiotech.org.
AUDIOTECH HEALTHCARE CORPORATION
First Bank Building
760-175 Second Avenue
Kamloops, B.C. V2C 5W1
Phone: (250) 372-5847
Fax: (250) 372-3859
Email: info@audiotech.org
Except for historical information contained herein this document contains forward-looking statements. These statements contain known and unknown risks and uncertainties that may cause the company's actual results or outcomes to be materially different from those anticipated and discussed herein.
THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES OF THE INFORMATION CONTAINED HEREIN.
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