REDISHRED CAPITAL CORP. ANNOUNCES ACQUISITION OF PROSHRED WISCONSIN

MISSISSAUGA, ON, Dec. 31 /CNW/ -- 
MISSISSAUGA, ON, Dec. 31 /CNW/ - Redishred Capital Corp ("Redishred")
 (TSXV: KUT) is pleased to announce that it has completed the
 acquisition of the Proshred Wisconsin business from an existing
 franchisee for an aggregate purchase price of $1,625,000. With this
 acquisition, Redishred will operate its third corporately owned
 location under the PROSHRED(®) banner. 


Redishred has drawn $1,550,000 from its line of credit facility to
 finance the purchase of the Proshred Wisconsin assets.


In conjunction with the purchase of the business, the franchisee will
 withdraw from the legal complaint that they and three other franchisees
 filed against Redishred's subsidiary in June 2010.


Mr. Robert Crozier, CEO of Redishred noted that "we are very pleased to
 conduct our third acquisition in 2010.  With this acquisition we plan
 on continuing to grow our revenues, cash flows and service coverage in
 Wisconsin.  We are also planning on working with our current Chicago
 franchisee on developing regional accounts that require service in both
 Wisconsin and Illinois." Mr. Crozier further noted that "We will
 continue to contribute to the Milwaukee and Madison communities by
 hosting a number of community shredding events throughout 2011."


2010 Highlights for Redishred Capital Corp:


    --  System sales in our PROSHRED(®) system for the first nine
        months of 2010 were $9.7 million, representing an increase of
        39% over the same period in 2009.
    --  On April 30, 2010, Redishred acquired the Proshred Syracuse
        business, marking Redishred's first corporate location.
    --  On June 30, 2010, Redishred acquired the Proshred Albany
        business, which was successfully integrated with the Syracuse
        location.
  o For the first five months of operations, the combined Syracuse and
    Albany locations generated $410,000 in sales and $75,000 in income.
    --  On July 1, 2010, the Denver, CO franchise was resold to a new
        franchisee.
    --  On July 26, 2010, Redishred awarded the San Diego, CA
        franchise, operations commenced in October 2010.
    --  On November 15, 2010, Redishred entered into an exclusive
        licence agreement with Averda International FZ-LLC to operate
        the PROSHRED(®) and REDISHRED business platform in 15 countries
        and four territories in the Middle East.
    --  On December 31, 2010, Redishred acquired the Proshred Wisconsin
        business.
    --  For the first 9 months of 2010, Redishred, through the PROSHRED
        (® )system saved 232,000 trees and recycled 15,480 tonnes of
        paper.



Services


Redishred Capital Corp. is the owner of the PROSHRED(®) trademarks and intellectual property in the United States.  PROSHRED(®) shreds and recycles confidential documents and proprietary materials
 for thousands of customers in the United States in all industry
 sectors.  PROSHRED(®) is a pioneer in the mobile document destruction and recycling industry
 and has the ISO 9001:2000 certification.  It is PROSHRED®'s vision to be the 'system of choice' and provide shredding and
 recycling services on a global basis.





Note: The TSX Venture Exchange has neither approved nor disapproved of
 the information contained herein.  


This news release contains forward looking statements that reflect the
 current expectations of management of Redishred and Redishred's future
 results, performance, achievements, prospects and opportunities. 
 Wherever possible, words such as "may", "will", "estimate", "believe",
 "expect", "intend" and similar expressions have been used to identify
 these forward looking statements. These statements reflect current
 beliefs and are based on information currently available to management
 of Redishred.  Forward looking statements necessarily involve known and
 unknown risks and uncertainties.  A number of factors, including those
 discussed in the 2009 management discussion and analysis under "Risk
 Factors", could cause actual results, performance, achievements,
 prospects or opportunities to differ materially from the results
 discussed or implied in the forward looking statements.  These factors
 should be considered carefully and a reader should not place undue
 reliance on the forward looking statements.  There can be no assurance
 that the expectations of management of Redishred will prove to be
 correct.


In particular, certain statements in this document discuss Redishred's
 anticipated outlook of future events. These statements include, but are
 not limited to the development of new regional accounts in Wisconsin
 and Illinois which is subject to the identification of clients that
 require service in those markets that are economically feasible to
 service in those geographies.


Readers are cautioned that such forward looking statements are subject
 to certain risks and uncertainties that could cause actual results to
 differ materially from these statements.  Redishred can give no
 assurance that actual results will be consistent with these
 forward-looking statements.


To view this news release in HTML formatting, please use the following URL: http://www.cnw.ca/en/releases/archive/December2010/31/c8235.html



pRedishred Capital Corp. (TSX.V - KUT)br/ Jeffrey Hasham, CAbr/ Chief Financial Officerbr/ a href="mailto:[e-mail]"[e-mail]/abr/ a href="http://www.redishred.com"www.redishred.com/abr/ Phone: [phone] Fax: [phone]/p pRobert Crozierbr/ Chief Executive Officebr/ a href="mailto:[e-mail]"[e-mail]/abr/ Phone: [phone] Fax: [phone]/p

Copyright