A.L.I. Technologies Inc. — Capital/Financing Update 1997

May 13, 1997

FORM 27

SECURITIES ACT

MATERIAL CHANGE REPORT UNDER SECTION 85(1) OF THE ACT (BRITISH COLUMBIA) AND UNDER SECTION 75(2) OF THE ACT (ONTARIO)

ITEM Number range level0Number range level1Number range level2Number range level3Number range level4Number range level5Number range level6Number range level71. REPORTING ISSUER

State the full name and address of the principal office in Canada of the reporting issuer

A.L.I. Technologies Inc.

95 - 10551 Shellbridge Way

Richmond, British Columbia

V6X 2W9

Telephone: (604) 279-5422

Facsimile: (604) 279-5468

ITEM 2. DATE OF MATERIAL CHANGE

May 9, 1997.

ITEM 3. PRESS RELEASE

State the date and place of issuance of the press release issued pursuant to Section 85(1) of the Act (British Columbia) and Section 75(1) of the Act (Ontario)

May 9, 1997 at Vancouver, British Columbia.

ITEM 4. SUMMARY OF MATERIAL CHANGE

Provide a brief but accurate summary of the nature and substance of the material change.

A.L.I. Technologies Inc. closed a non-brokered private placement of 1,500,000 common shares with General Electric Company, through their subsidiary, General Electric Canada Inc., which along with General Electric Company’s purchase of 468,990 previously issued common shares from A.L.I. Technologies Inc. shareholders, brings General Electric Company’s cumulative holdings to 19.6% of the total of A.L.I. Technologies’ issued share capital.

ITEM 5. FULL DESCRIPTION OF MATERIAL CHANGE

A.L.I. Technologies Inc. closed a non-brokered private placement of 1,500,000 common shares at a price of $6.80 per share for gross and net proceeds of $10,200,000 with General Electric Company, through their subsidiary General Electric Canada Inc. In addition, A.L.I. Technologies Inc. and General Electric Medical Systems have signed a Technology and Marketing Agreement.

General Electric Company also purchased an additional 468,990 previously issued common shares from A.L.I. Technologies Inc. shareholders. After this closing, General Electric Company’s cumulative holdings of 1,968,990 will represent 19.6% of the total of A.L.I. Technologies Inc.’s issued share capital.

ITEM 6.Number range level1Number range level2Number range level3 RELIANCE ON CONFIDENTIAL FILING PROVISIONS OF THE SECURITIES ACT

If the report is being filed on a confidential basis in reliance on Section 85(2) of the Act (British Columbia) and Section 75(3) (Ontario), state the reasons for such reliance

Not applicable.

ITEM 7. OMITTED INFORMATION

Nil.

ITEM 8. SENIOR OFFICERS

Gregory J. Peet, Chief Executive Officer (604) 279-5422.

ITEM 9. STATEMENT OF SENIOR OFFICER

The foregoing accurately discloses the material changes referred to herein.

DATED at Vancouver, British Columbia, this 9th day of May, 1997.

A.L.I. TECHNOLOGIES INC.

(signed) Gregory J. Peet

Chief Executive Officer