Amigula Inc. -- The World's First Publicly Traded Marijuana Company -- Announces that 'The Times are Changing'

The Liberal Government of Canada Reintroduces Bill C-10 -- formerly bill C-38 -- to Decriminalize Non-Medical Marijuana


NEW YORK, March 25, 2004 (PRIMEZONE) -- The following information is being issued by Amigula Incorporated:

Amigula Incorporated (Pink Sheets:AMJL), the World's First Publicly traded Medical Marijuana Company, today announced that the company recognizes that parliamentary Bill C-10 has been reintroduced into Canadian parliament effectively decriminalizing marijuana in Canada.

The federal government formally reintroduced some key pieces of legislation that were left unattended to after the Liberal government prorogued Parliament in November 2003.

Minister of Justice and Attorney-General Irwin Cotler formally reintroduced the controversial legislation to decriminalize possession of small amounts of marijuana.

The bill C-10 -- formerly C-38, which is virtually unchanged -- proposes that marijuana possession under 15 grams will result in a fine only. In sensational news, Western Australia decriminalized marijuana last week. This could affect the Canadian parliament's vote in a few weeks.

Western Australia -- Marijuana is now decriminalized in Australia

Western Australian Premier Geoff Gallop has defended the State's new cannabis laws, which came into effect yesterday. People caught with a small amount of cannabis, or with no more than two plants, will either be fined or will have to complete a counseling session, rather than incur a criminal record.

Amigula Incorporated has seen the writing on the wall, as the NDP government may become the important swing vote in Canadian Parliament when an election is called in the fall 2004. The NDP government is on the right track -- they have clearly stated that they would legalize marijuana and properly (sin) tax it as a commodity, states Peter Hilton Mijovick company treasurer.

During the previous session of Parliament, in October/November 2003, Bill C-38 was examined by the Special Committee on the Non-Medical Use of Drugs and was amended. Throughout the committee process, the NDP government pushed for a number of changes. The NDP got some movement from the government on certain aspects of the Bill. Parliament suspended in November and returned to session as of February 2004. The Bill (now called C-10) has been reintroduced for debate at the same stage it was at when the House was suspended in November.

The September 30, 2002 Speech from the Throne indicated that the federal government would consider the possibility of the decriminalization of marijuana possession.

What has been introduced under the Bill is a fine regime for simple possession (under 15 grams). A $150 fine for adults and $100 for youth would be issued for possession, but no criminal charges could be laid. For possession of 15-30 grams, police would have the discretion either to issue a ticket of $300 for an adult and $200 for a youth, or to proceed by a summary conviction criminal charge with a penalty of up to 6 months in prison, up to a $1000 fine, or both (plus, of course, a criminal record if the police proceed by way of criminal charge).

Although the federal NDP was able to get improvements on two significant parts of the Bill (sealing of records and personal cultivation), the NDP government remains concerned that Bill C-10 does not even go so far as to decriminalize marijuana, let alone set up a much more sensible regulatory regime.

The NDP government supports the following

Amnesty Provisions

Past charges or convictions for simple possession of marijuana would be erased; a pardon does not go far enough. It would be required to go back as far as records are kept.

Records for contraventions/receiving of fines

Records for people who received a fine for simple possession and/or cultivation for personal use of marijuana would be sealed and not shared with Interpol or other foreign jurisdictions.

Non-commercial transfer of marijuana

Currently, even simply giving marijuana for no money ("passing a joint") is considered trafficking. Bill C-38 should be amended so that non-commercial transfers of up to 30 grams of marijuana not be considered trafficking.

Reasonable grounds required for searches

Changes need to be made to the provisions required by police to obtain a search warrant to enter a person's home. Under the current Controlled Drug and Substances Act, suspicion that any amount of an illicit drug is in a home is enough for a warrant to be issued. The Bill should include new provisions that are more consistent with decriminalization. The Bill should be amended to require police to demonstrate reasonable grounds to believe that the amount of marijuana in the home exceeds 30 grams, or that trafficking -- which would not include simple non-commercial transfer -- of marijuana is occurring in order to obtain a search warrant.

Fines

The proposed fine for possession of up to 30 grams of marijuana should be eliminated. Alternatively, the NDP proposed that fines for possession of up to 30 grams of marijuana be changed to $25 for both adults and youth.

If a fine system is adopted, possession of any amount up to 30 grams should be ticket-able only. The discretion that the current Bill gives to the police to criminally charge a person possessing between 15 and 30 grams of marijuana should disappear.

A special provision to the Bill should be added to guarantee no imprisonment on defaulting on the payment of fines.

Personal cultivation

Non-punitive provisions for personal cultivation should be included in the Bill, allowing for the personal cultivation of up to 5 plants.

Warren Eugene, the company founder & Chief Executive Officer, states, "We hope to qualify for NASDAQ or Amex -- that's when the business really takes off.

When we file with the SEC -- we will focus on the revenue model for medical and recreational marijuana." Mr. Eugene also goes on to say, "It would make good economic and political sense for Canada to regulate and tax marijuana as they do tobacco and alcohol. There is a huge, untapped taxable base available to support many initiatives including the paying down of deficits, the funding of social initiatives such as the ailing school system and the distraught medical system, social insurance, homelessness, the arts, sports -- all contribute to the overall good of people around the world. In just this stand alone model, over $900 million per year in tax revenue may be realized." The company is an original-agricultural-pharmaceutical-brand.

Mr. Eugene, is planning to attract large name Hollywood celebrities to endorse his company's marijuana products; he feels the timing -- becoming a reporting issuer -- is very beneficial to the project.

Mr. Eugene is recognized as a pioneer in industry as a founder of both Internet Gaming and E-cash (Electronic Cash), producing timely entrepreneurship while recognizing opportunities created through technological advances. He has been featured in esteemed publications like Time Magazine, USA Today, and The Wall Street Journal as well as prominent network and distribution channels like CNBC, CBS, MSN, CNN, Reuters, Bloomberg, PBS, AM New York and hundreds of international news services.

About Amigula Inc.

Amigula Inc. (www.Amigula.com) has recently completed the purchase of 51% of Medical Cannabis Inc. and has announced their plans to file as a reporting issuer. The company plans to list on a major exchange beginning with an application for a listing on the American Stock Exchange (AMEX) or NASDAQ as well as several European exchanges. The company views the current prohibition of marijuana as similar to that of alcohol, beer and tobacco. Canada's marijuana crop alone is estimated at $4 billion to $7 billion. If a single company controlled it, it would be larger than Canada's oil and gas business and agricultural industries. On October 7, 2003 the Ontario Superior Court ruled that business and individuals be allowed to grow and supply medical marijuana, effectively relieving the Canadian government of its often criticized and fairly unsuccessful attempts. Health Canada "permitted persons" (exemptees) can now pay Amigula to grow marijuana for them. The ruling makes it easier for sick people to get marijuana by allowing them easier access -- more choice and fair prices. The company has a mandate to develop and improve the medical marijuana business worldwide and is on the acquisition and consolidation trail of other legal licensed marijuana operations with notable international brands.

Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward- looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing and access funds from our existing financing arrangements that will allow us to continue our current and future operations. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events.


            

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