October 30, 1996

Vector Intermediaries Inc. (Vector) (ASE "VTE") announces that it has acquired the business of Neilson Insurance Brokers Inc. "Neilson" & Hardcastle Insurance Brokers Inc. "Hardcastle" of Ontario, Canada.

Neilson of Etobicoke, Ontario, is an insurance brokerage firm that offers personal, commercial property and casualty insurance coverage. It generates a premium volume of CA$12 million per annum. Terry Neilson, the former Principal, will continue to serve and develop Vector's commercial division.

Hardcastle of Toronto, Ontario is a property and casualty ("P&C") insurance broker. This business unit is being integrated into Neilson, Vector's principal brokerage firm in Ontario.

Vector distributes products and services related to the insurance industry through its wholly owned subsidiaries. Following the closing of this transaction, Vector companies will be licensed to sell insurance in Alberta, Ontario, New Brunswick, and Nova Scotia.

Aberdeen Gould originated the transaction and provided exclusive corporate advisory services to Vector.

Aberdeen Gould is an advisory firm that specializes in corporate finance, M & A and valuations for manufacturing companies. It provides a full suite of value-added services for owners and managers of private as well as public companies. Based in Toronto, and with a presence in Quebec, the firm conducts business across North America through established client relationships.