June 07, 2007 08:00 ET

Syscan Closes Acquisition of Australian RFID Group

MONTREAL, QUEBEC--(Marketwire - June 7, 2007) - Syscan International Inc. (TSX VENTURE:SYA) ("Syscan") today announced that the acquisition of the "Austin RFID Group" under the terms originally outlined in the news release dated April 3, 2007, has been closed.

Syscan has issued 2,676,291 million shares at an assigned value of Cdn$0.23 per share and shall within 120 days make a cash payment of A$300,000 (approximately Cdn$265,000) to the shareholders of the Austin RFID Group. Additionally, the Austin RFID Group shareholders can earn out up to Cdn$395,708 worth of Syscan shares over the next two years subject to the attainment of certain growth projections. The issue price of these shares will be the greater of Cdn$0.23 per share and the market price at that time.

As previously reported, the combined revenues of these companies for fiscal 2006 were approximately Cdn$1.3 million and Syscan expects a positive cash flow and earnings contribution to its overall operations from the Group.

The Austin RFID Group is comprised of:

(a) Fastcards Pty Ltd, a patented secure online issuer of Photo RFID cards holding Issuing Body status for the Australian Maritime Security Identification Card, contactless smart card supply and managed identification services;

(b) Sunshine Technologies Pty Ltd, an award-winning and leading RFID solutions provider in Australia with a focus on mining, government, defence and general inventory and asset management applications; and

(c) id-DNA Pty Ltd, a visionary start-up bio-security company with a portfolio of intellectual property and knowledge focused on RFID combined with DNA applications in the food industry, identification and forensic chain of custody applications.

Mr. Axel Striefler, President and CEO of Syscan stated, "I am particularly pleased to report the closing of this acquisition as part of our plan to move Syscan onto a rapid growth path. Fastcards and Sunshine Technology really boost our ability to grow and id-DNA adds important intellectual property to Syscan. Scott Austin is a dynamic leader and his heading of our activity in Australia will positively impact our operations everywhere." Striefler further added, "On behalf of Syscan and all our Directors, I am very pleased to welcome Scott Austin to our senior management team as President of Syscan Australasia."

Mr. Scott Austin stated, "I have known Syscan and its technology for a number of years, but perhaps even more impressive to me is Syscan's thorough, determined and deliberate approach to the market. My team and I are very much looking forward to joining Team Syscan."

About Syscan International Inc.

Syscan is a world class supply chain solution provider that delivers integrated real-time tracking and tracing systems that improve business efficiency through Radio Frequency Identification (RFID). Its standardized supply chain solutions include traceability, temperature monitoring and quality control methodologies for the food, pharmaceutical and military sectors. Shares of Syscan trade on the TSX Venture Exchange under the symbol SYA. There are approximately 47.4 million shares outstanding.

To receive Company press releases, please email and mention Syscan on the subject line.

Forward-looking statements: This news release may contain forward-looking statements that relate to future events or expectations of future performance. Forward-looking statements reflect management's current beliefs and are based on information presently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. The forward-looking statements are made as of the date hereof and Syscan does not assume any obligation to update or revise them to reflect new events or circumstances.

The TSX Venture Exchange has not reviewed this release and it does not accept responsibility for its adequacy or accuracy.

Contact Information