ZNNC Zann Corp (PK)

ZANN Corp. (OTCBB:ZNNC) Announces Financial Advisory Agreement With Gemstone Securities LLC. Effective August 16, 2005, the Board of Directors of ZANN Corp. (the "Company") approved a Financial Advisory Agreement between the Company and Gemstone Securities LLC, whereby Gemstone Securities LLC will act as the Company's exclusive financial advisor. Gemstone Securities LLC is a licensed NASD member firm located in Clearwater, Florida. (www.gemstonesecurities.com) According to Robert C Simpson, Chairman - CEO, "We are pleased with the Gemstone relationship and have expectations for working capital to expand our production capacity by more than 200 tools and 100,000 magazines in December 2005. Without any additional capital it would take several extra months to achieve that level. The proposals we have discussed with Gemstone thus far appear to be on track to minimize dilution of our stock. Most of our 2005 sales will come in the 4th quarter. We are allocating sales on a first come first serve basis and hope to have the 2005 schedule sold within 45 days. Our plan is to sell more than 400 more tools this year and have more than 1,500 magazine customers buying $100.00 in magazines/day during 2006. We can easily scale up to supply 6,000 magazine customers during 2006 if necessary." ABOUT ZANN CORP ZANN Corp. Our primary business is the manufacture and sale of high quality, high value semi automatic riveting tools and magazines. For additional information please visit the corporate website at: www.zanncorp.com Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934 and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.