Cybersurf Corp. Announces Settlement of Mercury Action

Cybersurf Corp. ("Cybersurf") (TSX-V: CY), one of Canada's leading independent Internet service providers and Internet technology companies, today announced that it has entered into a settlement agreement with Mercury Partners & Company Inc. and the other defendants in the action that Cybersurf had commenced in the Alberta Court of Queen's Bench.

Under the terms of the settlement, the defendants have agreed to pay Cybersurf $1.1 million and surrender to Cybersurf (or a nominee of Cybersurf) 578,400 common shares of Cybersurf. Cybersurf is in the process of obtaining the necessary regulatory approval for the surrender of these shares. The defendants, other than Global Securities Corporation, have also agreed to dispose of their other shares of Cybersurf and not to acquire shares in the future or otherwise participate in the business or affairs of the company.

Under the terms of the settlement, the defendants did not admit liability.

The settlement of these legal proceedings brings to an end the corporation's dispute with its former dissident shareholders on very favourable terms, and brings to an end significant legal expenses and commitment of management's time and effort that had been devoted to the lawsuit.

About Cybersurf Corp. and 3web Corp.

Cybersurf is an independent Internet and communications company providing Canadians with a value-driven alternative to large incumbent carriers. Cybersurf prides itself on providing the highest possible quality of services at the lowest possible prices.

Through innovation and industry, Cybersurf develops and deploys advanced technology software applications for Internet Service, Internet Portal and New Media ventures. These applications are designed to maximize available resources, reduce operating costs and create new revenue opportunities. Cybersurf's technology solutions are transferable and provide a cost-effective structure to companies that use them, whether their customers use dial-up, digital subscriber line or cable technologies.

Cybersurf believes Canadians want 'The Freedom of Choice' that comes with having a truly independent provider as an alternative to Canada's larger incumbent telephone companies or cable carriers -- a choice that allows users to connect to the Internet how they want and with an independent provider that focuses on the needs of today's average user by providing quality service at the best possible price. Cybersurf is that choice.

3web Corp., a wholly owned subsidiary of Cybersurf Corp., is one of Canada's largest independent Internet service providers. Through its 3webXS service, 3web provides its subscribers with premium, unlimited Internet access across the country at a fraction of the cost of competing services.

For more information about Cybersurf and 3web, please visit www.cybersurf.com and www.3web.com.

Cybersurf's common shares trade on the TSX Venture Exchange (TSX-V: CY). The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Distributed by Filing Services Canada and retransmitted by Market Wire

For more information, please contact:
investor.relations@cybersurf.com
300, 1144 - 29 Avenue NE
Calgary, AB, T2E 7P1
Ph: 403.777.2000
Fax: 403.777.2003

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