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

Mar 22, 1997

FORM 27

SECURITIES ACT

(British Columbia)

MATERIAL CHANGE REPORT UNDER SECTION 67(1) OF THE ACT

Form 27 Securities Act (British Columbia) Material Change Report Under Section 67(1)

Form 27 Securities Act (Alberta) Material Change Report Under Section 118(1)

Form 25 Securities Act (Saskatchewan) Material Change Report Under Section 84(1)(B)

Form 27 Securities Act (Ontario) Material Change Report Under Section 75(2)

(Manitoba) Material Change Report Under National Policy No. 40 Timely Disclosure

1. Reporting Issuer

A.L.I. Technologies Inc.

The address of the principal office in Canada of the reporting issuer is as follows:

Suite 95, 10551 Shellbridge Way, Richmond, BC V6X 2W9

PHONE: (604) 279-5422

1. Date of Material Change

March 14, 1997

1. Press Release

The date and place(s) of issuance of the press release issued pursuant to

Section 67(1) of the Securities Act (British Columbia)

Section 118(1) of the Securities Act (Alberta)

Section 84(1)(B) of the Securities Act (Saskatchewan)

Section 75(2) of the Securities Act (Ontario)

National Policy No. 40 Timely Disclosure (Manitoba) are as follows:

The Press Release was released to the Vancouver Stock Exchange being the only exchange upon which the shares of the Company are listed, and through various other approved public media.

1. Summary of Material Change(s)

A summary of the nature and substance of the material change is as follows:

Vancouver, BC - A.L.I. Technologies Inc. (“ALI”) announces that GE Medical Systems (“GEMS”), a division of the General Electric Company and ALI have signed a letter of intent to create a strategic Technology and Marketing Agreement. GEMS has also agreed to invest up to C$13,600,000 in ALI equity. The agreement is subject to legal, regulatory and financial review. No other details will be disclosed prior to completing final documentation.

ALI’s CEO, Greg Peet said, “The Agreement between ALI and GEMS is intended to create value for both parties by co-operating in the development and marketing of medical image management technology, products and systems. ALI will have the opportunity to leverage its technology portfolio through global distribution with GE, a premier supplier of medical imaging products. ALI’s headquarters in Richmond, near Vancouver, BC will now fulfill the additional role as centre of excellence in medical image management research and development in cooperation with GEMS.”

Tony Lombardo, General Manager, Integrated Imaging Solutions for GEMS said, “…GEMS has made a commitment to become a world market leader in medical image network systems. A year ago, GEMS chose to work with ALI because of ALI’s proven track record of providing effective networking solutions in ultrasound. Through that successful relationship, GEMS has developed an appreciation of ALI’s rich portfolio of “market ready” medical image management systems, ability to rapidly develop competitive products, and ALI’s understanding of customer image management needs.”

ALI will issue preferred shares with aggregate value of $8,160,000 which will have rights of conversion at a price of $6.80 per share. ALI may also issue additional preferred shares with a value of up to $5,440,000 which will have rights of conversion at a price of not less than $6.80 per share. In sum, all of these preferred shares will be convertible into not more than 2,000,000 common shares and would represent not more than 19.9% of the total common shares outstanding after financing. This equity issue is subject to regulatory approval.

GE Medical Systems, is a leading manufacturer of medical imaging equipment including Ultrasound, X-ray, Computed Tomography (CT), Magnetic Resonance Imaging (MRI), and Nuclear Medicine (NM) systems and related services sold world-wide supported by a staff of over 15,000 people.

A.L.I. Technologies Inc. is a medical information technology company based in Richmond, BC that markets filmless diagnostic image management systems. ALI develops proprietary software, integrates systems using industry standard hardware and sells turnkey solutions to hospitals and clinics in the United States, Canada and selected other countries world-wide.

1. Full Description of Material Change

Vancouver, BC - A.L.I. Technologies Inc. (“ALI”) announces that GE Medical Systems (“GEMS”), a division of the General Electric Company and ALI have signed a letter of intent to create a strategic Technology and Marketing Agreement. GEMS has also agreed to invest up to C$13,600,000 in ALI equity. The agreement is subject to legal, regulatory and financial review. No other details will be disclosed prior to completing final documentation.

ALI’s CEO, Greg Peet said, “The Agreement between ALI and GEMS is intended to create value for both parties by co-operating in the development and marketing of medical image management technology, products and systems. ALI will have the opportunity to leverage its technology portfolio through global distribution with GE, a premier supplier of medical imaging products. ALI’s headquarters in Richmond, near Vancouver, BC will now fulfill the additional role as centre of excellence in medical image management research and development in cooperation with GEMS.”

Tony Lombardo, General Manager, Integrated Imaging Solutions for GEMS said, “…GEMS has made a commitment to become a world market leader in medical image network systems. A year ago, GEMS chose to work with ALI because of ALI’s proven track record of providing effective networking solutions in ultrasound. Through that successful relationship, GEMS has developed an appreciation of ALI’s rich portfolio of “market ready” medical image management systems, ability to rapidly develop competitive products, and ALI’s understanding of customer image management needs.”

ALI will issue preferred shares with aggregate value of $8,160,000 which will have rights of conversion at a price of $6.80 per share. ALI may also issue additional preferred shares with a value of up to $5,440,000 which will have rights of conversion at a price of not less than $6.80 per share. In sum, all of these preferred shares will be convertible into not more than 2,000,000 common shares and would represent not more than 19.9% of the total common shares outstanding after financing. This equity issue is subject to regulatory approval.

GE Medical Systems, is a leading manufacturer of medical imaging equipment including Ultrasound, X-ray, Computed Tomography (CT), Magnetic Resonance Imaging (MRI), and Nuclear Medicine (NM) systems and related services sold world-wide supported by a staff of over 15,000 people.

A.L.I. Technologies Inc. is a medical information technology company based in Richmond, BC that markets filmless diagnostic image management systems. ALI develops proprietary software, integrates systems using industry standard hardware and sells turnkey solutions to hospitals and clinics in the United States, Canada and selected other countries world-wide.

1. Reliance on Section 67(2) of the Securities Act (British Columbia) or,

Reliance on Section 118(2) of the Securities Act (Alberta) or,

Reliance on Section 84(2) of the Securities Act (Saskatchewan) or,

Reliance on Section 75(3) of the Securities Act (Ontario)

National Policy No. 40 Timely Disclosure (Manitoba)

Not Applicable

1. Omitted Information

Not Applicable

1. Senior Officer

The following senior officer of the Issuer is knowledgeable about the material change and may be contacted by the Commission at the following address and telephone number:

Greg Peet, Chief Executive Officer

A.L.I. Technologies Inc.

Suite 95, 10551 Shellbridge Way, Richmond, B.C. V6X 2W9

PHONE: (604) 821-6304

1. Statement of Senior Officer

The foregoing accurately discloses the material change(s) referred to herein.

DATED at Vancouver, British Columbia, as of the 18th day of March, 1997.

______________________________________

Greg Peet Director/Secretary