Brocker Technology Group Ltd. says it has reached an agreement to amend the terms for its acquisition of Generic Technology Group Ltd.

An initial instalment of approximately $1.5 million was paid on the closing in October 2000, and 435,942 com mon shares were to be issued, allowing the Edmonton-based IT and telecommunications firm to purchase Generic and its subsidiaries, the Datec Group.

Under the original terms of the transaction, additional payments totaling approximately $4.5 million plus interest were to be made in instalments beginning in October 2001.

Brocker has renegotiated the original terms of purchase to include a combination of cash, common shares, warrants and debt to complete the deal.

Additional cash payments totalling $265,000 are being made immediately. A balance of $560,000 plus interest will be paid from the proceeds of the sale of a commercial building located in Auckland, New Zealand, which is owned by Brocker.

To complete the Generic acquisition, common shares totalling $1.5 million (valued at $0.50 per share) are to be issued; a first-ranking debenture will be issued for a principal amount equal to approximately $3.5 million bearing an interest rate of eight per cent per annum to be fully repayable within five years; and a further 1,092,132 share purchase warrants exercisable at $0.75 are to be issued.

The immediate cash payment is being funded in part by a secured loan that involves the issuance of 132,000 warrants wi th a $0.75 exercise price.

The alteration of terms to complete the acquisition creates a potential change of control in Brocker and is subject to the approval of Brocker's shareholders and the approval of the Toronto Stock Exchange.

The Datec Group of companies – suppliers of IT and telecommunications in the southwestern Pacific – have become the core operating focus of Brocker within the past year.

Reorganization measures implemented by Brocker in the past 10 months have resulted in the wind-down and liquidation of most of the subsidiaries in New Zealand, along with significant staff reductions.