MPL Communications Inc. (TSX VENTURE:MPZ) announces that it and its major
shareholder, Marpep Publishing Limited, have approved a settlement of amounts
owed by Marpep under an Alberta court order issued in early 2009. The order
arose from an oppression action launched by certain MPL minority shareholders.


A revised settlement proposal was sent to MPL's independent directors in early
March, which they reviewed together with Marpep's financial statements for the
years 2002 through 2008 and the statements of personal financial affairs of
Marpep's principals. The independent directors conditionally approved the
settlement proposal on March 17, subject to satisfaction of a number of
conditions and with director David Carlson voting against. The full MPL board
met on May 20 and May 26 to discuss the proposal and the conditions and on May
28, MPL's board, satisfied that the conditions had been satisfactorily
fulfilled, approved the Marpep settlement proposal. Directors Stephen Pepper and
Barrie Martland declared their conflict and did not vote and director David
Carlson voted against. The other three independent directors voted in favour.


As a condition of the proposal, MPL will retain the management services of its
two executive officers through the engagement of their private company, Marpep,
rather than directly. This will not result in any increased cost to MPL but will
provide Marpep with a source of income to repay MPL. Amounts due from MPL to its
two executive officers ($226,433 at March 31, 2010) will be applied to the court
award on behalf of Marpep. The balance will be paid in monthly instalments of
$15,000 plus interest.


Because of its current financial position, MPL's board has decided that it is
unable to pay accrued management salaries owing to MPL's two executive officers.
When MPL pays all or a portion of the compensation owing, MPL will remit
appropriate source deductions and credit the Marpep receivable with the net
amount of the compensation owing.


The payment proposal also deferred the final three principal payments on a
pre-existing Marpep note. Payments of $101,072, $101,072 and $101,064 on each of
June 30, 2010, 2011 and 2012, will be deferred to June 30, 2012, 2013 and 2014.


The minority shareholders who commenced the original litigation (one of whom is
David Carlson, now an MPL director) filed a Notice of Motion on May 17, 2010, to
bring the matter back to the court.


MPL also announces that the audit of its 2009 financial statements has been
completed and the financial statements and related management's discussion and
analysis and CEO and CFO certifications have now been filed on SEDAR. However,
MPL did not meet the May 31 filing deadline for its Q1 2010 financial statements
and related management's discussion and analysis and CEO and CFO certifications.
MPL anticipates that filing will occur by June 30, 2010.
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