Cantronic Systems Inc.
TSX VENTURE : CTS

Cantronic Systems Inc.

March 15, 2010 08:00 ET

Cantronic Acquires Additional Interest in Beijing Advanced Videoinfo Technology Co., Ltd.

-Acquisition provides Cantronic complete control over Chinese software company-

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 15, 2010) - Cantronic Systems Inc., ("Cantronic" or the "Company") (TSX VENTURE:CTS), today announced that it has acquired an additional 9.08% interest in Beijing Advanced VideoInfo Technology Co., Ltd. ("AVINFO") for a total of RMB 0.9 million (approximately CDN$0.14 million) in cash, increasing its ownership position to 67.64%. 

"This transaction provides us with complete control of our China-based software company, AVINFO," said James Zahn, President and Chief Executive Officer of Cantronic. "AVINFO has established its software as one of the leading management platforms for monitoring and surveillance, with small and large installations in more than 60 Chinese cities. As these cities expand their networks they are more likely to choose a proven software solution with a user interface that their staff has been trained on. With AVINFO's software and the hardware from our other Chinese subsidiary, Shenzhen Huanghe Digital Technology Co. Ltd., we have a fully- integrated product offering, which positions us well to capitalize on the burgeoning demand for video surveillance systems in China."

Cantronic also agreed to issue up to RMB 2.72 million (approximately CDN$0.42 million) worth of Cantronic common shares to AVINFO management, management consultants and key employees under an earn-out performance-based arrangement. Cantronic common shares to be issued will be based on the market price at the close of this acquisition and will be subject to a lock-up period of two years after the issuance. 

About AVINFO

Established in 2002, AVINFO is a leading provider of networked multimedia management solutions for remote monitoring and security surveillance. AVINFO's patented proprietary software, products and services compliment Cantronic's patented infrared camera technology. AVINFO's technology platform is a mission critical component of China's "Safe City" projects, which endorses video surveillance across various towns and cities to monitor and control crime, violence and terrorism on a full-time basis. AVINFO sells its software and related products to government and corporate customers through a direct sales force and through distributors and systems integrators. 

About Cantronic Systems Inc.

Cantronic Systems Inc. manufactures, distributes, and provides training and services in the fields of infrared vision and video security surveillance technologies, specializing in passive and active infrared cameras, infrared illuminators, low light infrared sensitive CCD cameras and long-range night vision surveillance systems for demanding homeland security and surveillance application.

Cantronic holds a valid medical device manufacturing license and is a manufacturer and distributor of its fever scan thermal imaging camera systems which have been widely deployed in public facilities such as airports, railway stations, and border crossings worldwide during the SARS (Avian/Bird Flu) outbreak in 2003 as well as during the Swine (H1N1) Flu pandemic in 2009.

Cantronic, through its US subsidiary QWIP Technologies, Inc. ("QWIPTECH"), holds a worldwide, exclusive license from the California Institute of Technology ("Caltech") to produce and sell infrared detectors and sensors based on Caltech's Quantum Well Infrared Photodetector technology.

Cantronic, through its China subsidiaries Cantronic Security Systems (China) Co. Ltd., Beijing Advanced Videoinfo Technology Co. Ltd. ("AVINFO") and Shenzhen Huanghe Digital Technology Co. Ltd. ("Yellow River"), provides digital networked video surveillance solutions to government and corporate customers in China.

Cantronic is a Tier 1 issuer on the TSX-V exchange, trading under the symbol CTS. For further information about Cantronic and QWIPTECH, please visit our websites at www.cantronics.com and www.qwip.com.

Forward-looking statements

This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Cantronic Systems Inc. and the markets in which it operates. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Cantronic to be materially different from any future results, performance or achievements expressed or implied by said forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this news release, and Cantronic Systems Inc. assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.

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.

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