TORONTO, July 5 /CNW/ - LEMONTONIC INC. (the "Corporation") (TSX-VEN: LEM) announces that Wellington West Capital Inc. ("Wellington") have agreed the previously announced proposed private placement financing of 4,444,444 units of the Corporation at a price of $0.45 per unit for gross proceeds to the Corporation of $2 million will not be proceeding.

The Corporation and Wellington have agreed the Corporation will proceed with a private placement of units for gross proceeds of up to $1,500,000 at a price to be determined in the context of the market for the class A shares of the Corporation (the "Private Placement"). Each unit will consist of one class A share and one-half of one warrant, with each whole warrant entitling the holder to purchase one class A share at a price of $0.45 per share for a period of eighteen months from the closing date.

In connection with the Private Placement, Wellington will be paid a cash commission of 7% of the subscription proceeds sold by Wellington. In addition, Wellington will be granted an agent's option to purchase that number of class A shares of the Corporation that is equal to 10% of the number of units sold by Wellington. Each agent's option shall entitle the holder to acquire one class A share of the Corporation at the offering price for a period of one year.

The completion of the Private Placement is subject to the approval of the TSX Venture Exchange Inc. and all other necessary regulatory approvals. Closing is expected to occur on or about July 19, 2004.

The Corporation intends to use the proceeds from the Private Placement for marketing, product research and development, as well as for working capital purposes.

About Lemontonic

The Corporation's mission is to address the unrealized needs of the online dating market with the aid of leading edge technology and superior interactive design. The Corporation will be the world's first online dating service to be powered by Microsoft Instant Messenger.

To find out more about Lemontonic Inc. (TSX-VEN: LEM), visit our website at www.lemontonic.com.

The TSX Venture Exchange Inc. has not reviewed and does not accept

responsibility for the adequacy and accuracy of this release.