MONTREAL – October 3, 2006 –Engenuity Technologies Inc. [“Engenuity” or the “Company”] [TSX: EGY],a global leader in visualization and simulation software solutions,today announced the acquisition of AcuSoft, Inc., a premier softwaretechnology company specializing in simulation, training, visualizationand automation. The acquisition is part of Engenuity’s overall strategyto expand its operations in the U.S. market and deliver comprehensiveend-to-end visualization and simulation solutions to its customers. Thetransaction, valued at up to US $2,660,000, (a portion of which will bepayable only if certain financial targets are met) has receivedregulatory approval from the Committee on Foreign Investment in theUnited States (“CIFIUS”), and is undergoing review by the DefenseSecurity Service (DSS). In partial payment of the purchase price,Engenuity has issued 2,027,203 common shares to the former shareholdersof AcuSoft in connection with this acquisition.

“Our partnershipwith AcuSoft prompted this acquisition, and we look forward toleveraging their ground-based simulation expertise as we drive furtherinto government simulation,” says Patrice Commune, chief executiveofficer, Engenuity Technologies. “This acquisition will be instrumentalin helping us further develop our relationship with PEO STRI as weembrace its OneSAF strategy, and will deepen our longstandingpartnership with Boeing through AcuSoft’s involvement in the FutureCombat Systems (FCS) program.”

With the acquisition of AcuSoft,Inc., Engenuity will enhance its ground simulation capabilities in theSTAGE™ simulation toolkit. STAGE is Engenuity’s portfolio ofcommercial-off-the-shelf (COTS) software products for buildingsimulation-based training systems, avionics test benches, and missionplanning and rehearsal systems. By integrating AcuSoft’s suite ofsimulation tools, STAGE users will have vastly enhanced simulation andmodeling capabilities. AcuSoft’s clients will benefit from Engenuity’sextensive portfolio of simulation tools including AI.implant, theCompany’s Artificial Intelligence (AI) Software Development Kit (SDK).

“Thetechnology that has been developed at Engenuity – especially STAGE andAI.implant – combined with AcuSoft’s tools, will greatly expand thecapabilities that we can offer our current and future customers,” saidBill Szymanski, president of AcuSoft, Inc. “In becoming a part ofEngenuity we will be better able to expand the worldwide reach of ourtechnology and together grow Engenuity’s influence in the Americanmilitary marketplace.”

AcuSoft’s longstanding involvement inseveral high-profile military projects made it a natural fit forEngenuity’s acquisition strategy.  Engenuity will seek to strengthenAcuSoft’s established relationships as a supplier to major governmentinitiatives such as the OneSAF Objective System (OOS) of the Army’sProgram Executive Office for Simulation, Training & Instrumentation(PEO STRI), and will continue to support the development of tools andservices for this market.

Engenuity is permitted to acquireAcuSoft so long as it has in place a set of institutional measures thatinsulate and protect AcuSoft’s classified information and contractperformance from disclosure to the foreign company. Such measures arefrequently referred to as Foreign Ownership Control or Influence(“FOCI”) mitigation. This mitigation plan includes, among otherrequirements, the establishment of an independent board of directors inthe United States. The Board will consist of Jacques Dubois, chieffinancial officer at Engenuity Technologies, Bill Szymanski, presidentof AcuSoft, Inc., Lana Liu, treasurer and secretary of AcuSoft and oneof its original founders, General George A. Joulwan, United States Army(Ret. 1997), and Nick Ali, former vice president of Lockheed Martin.


About AcuSoft, Inc.

AcuSoftis a premier software technology company with emphasis in simulation,training, visualization and automation. The company has beeninstrumental in developing and supporting simulation industry standardssuch as DIS, HLA and SEDRIS, and most recently, the Military ScenarioDefinition Language (MSDL). In addition to AcuScene (real-timevisualization software), AcuSoft’s other simulation and trainingapplications include the Military Scenario Development Environment(MSDE), PowerSTRIPES After-Action Review (AAR) Tool, ElectronicClassroom Management Systems (CMS), Side-by-Side database tools andrelated technologies. Visit the AcuSoft Web site at www.AcuSoft.com.