News release

Magor Corporation announces a brokered debenture offering

Minimum offering size of $1.0M fully committed

OTTAWA, Oct. 22, 2013 /CNW/ - Magor Corporation ("Magor" or the "Company") (TSX-V: MCC), a global leader in visual collaboration solutions, today announced that it intends to complete a brokered private placement of subordinated secured debentures in the aggregate minimum gross proceeds of $1,000,000 and maximum gross proceeds of up to $2,000,000 (the "Offering") in units (the "Units"). Each Unit will be issued for $1,000 per Unit and shall consist of a $1,000 par value senior secured debenture (the "Debentures") and 1,000 common share purchase warrants (each a "Warrant"). The Debentures shall mature four (4) years from the date of issuance, unless redeemed at 102.0%, at the option of the Company, and the Warrants are exercisable at a price of $0.40 for a period of four (4) years. The Debentures shall bear interest at an annual rate of 12% of par value, payable every six (6) months in arrears in cash. On maturity, the Company intends to settle the principal amount of the Debentures for cash or subject to TSXV acceptance, for common shares, at the option of the holder, under Policy 4.3 of the TSXV Corporate Finance Manual. The syndicate, is led by Jacob Securities Inc., and includes Macquarie Private Wealth Inc. (the "Syndicate"). The Syndicate is offering the Units on a "best efforts" basis and is pleased to confirm that current commitments are $1,000,000.

Magor intends to use the gross proceeds from the Offering to accelerate the growth opportunity associated with the Company's Aerus cloud-based video collaboration solutions, which will be fully launched this fall.

"This funding will help to accelerate our investments into the sales and support of our exciting Aerus cloud services offering," said Mike Pascoe, President and CEO of Magor Corporation. "This debt vehicle complements our recently closed equity placement to provide a balanced approach to rive this funding."

The Offering remains subject to the approval of the TSX Venture Exchange and the satisfaction of other customary closing conditions. All securities issued pursuant to the Offering (and any underlying securities) will be subject to a statutory four (4) month hold period, commencing as at the closing date of the Offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, or for an account or benefit of U.S. persons (as such term is defined in Regulation S under the United States Securities Act of 1933, as amended).

About Magor Corporation:

Magor enables people to engage in high-quality visual conversations while simultaneously sharing, viewing and editing relevant collaborative material on desktops, laptops, tablets, smartphone applications, whiteboards and other devices. Magor fits any workflow so that users have the freedom to work together naturally anytime, regardless of location, network or device. To find out more about Magor Corporation (TSX-V: MCC), visit our website at http://www.magorcorp.com.

Disclaimer in regards to Forward-looking Statements

Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward looking statements. Except as required by law, Magor does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Mike Pascoe
President and CEO
Magor Corporation
613-686-1731
mike.pascoe@magorcorp.com

Babak Pedram
Investor Relations
Virtus Advisory Group Inc.
416-995-8651
bpedram@virtusadvisory.com

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