XPEL Announces Private Placement Offering

SAN ANTONIO--Oct. 2, 20057, 2005--XPEL Technologies Corp. (CNQ:XPEL.U) announced today its intention to complete a private placement of up to US$650,000, offered at US$0.64, per Unit. Each Unit consists of one common share of the Company and one warrant entitling the holder to purchase an additional common share of the Company for two years from the closing date at a price of US$0.95 per share. The Company will pay a finder's fee of 5% of the gross proceeds, and up to 203,125 "A" warrants exercisable at US$0.64 and up to 203,125 "B" warrants exercisable at US$0.95, each with a 2-year term from the closing date. The intended use of proceeds from the financing includes, administrative expenses, working capital needs and increased inventory requirements.

The Company also announced that the Board of Directors has approved an amendment to its incentive stock option plan to change the maximum number of shares reserved for issuance under the plan from a rolling 10% to a fixed number equal to 20% of the total issued shares of the Company. The amendment is subject to approval by the shareholders of the Company and the number of shares reserved will be based on the number of issued shares at the time of shareholder approval. The vesting provisions contained in the current plan will remain in effect.

XPEL Technologies Corp. (www.xpel.com), publicly traded on the Canadian Trading and Quotation System Exchange, is the worldwide leader in the electronic delivery of top automotive aftermarket products, utilizing the Internet as an integral component for its design, manufacturing, distribution and customer relationship strategies. The Company's DAP software utility offers Dealers the industry's most efficient and productive tool set for better serving customers with "best of breed" solutions in real-time. XPEL has clear advantages over the competition through its proprietary corporate framework consisting of an expansive library of installation-friendly window tint, paint and headlight protection products, coupled with a unique web-based remote manufacturing and distribution software, superior installation training curriculum and facilities, and established and growing sales distribution channels.

The CNQ has not reviewed and does not accept responsibility for the adequacy and accuracy of this information.

CUSIP: U98409102