November 21, 2008 17:10 ET

Syscan International Announces Letter of Demand in the Amount of C$ $207,520 for a Previously Announced Bridge Loan

MONTREAL, CANADA--(Marketwire - Nov. 21, 2008) - Syscan International Inc. ("Syscan" or the "Company") (TSX VENTURE:SYA) today announced that it has received a Letter of Demand ("LOD") from attorney's of Bluehill ID, AG (the "Lender"), a company with headquarters in Switzerland and a secured lender of the Company pursuant to a Bridge Loan (the "Loan) the Company had obtained to use as working capital.

The Loan was first time entered on August 29, 2008 in the amount of C$ 150,000 and subsequently increased by C$ 50,000 on October 3, 2008. The Company signed two (2) promissory notes pursuant to which the Company unconditionally promised to pay by December 28, 2008 the cumulative sum of two-hundred thousand dollars ($200,000.00) to BlueHill, said amount bearing interest, at a nominal rate of 18% per annum (the "Promissory Notes"). Moreover, on August 29, 2008, the Lender and the Company entered into a movable hypothec Agreement (the "Hypothec") which guarantees the payment by the Company under the Promissory Notes to the extent of one hundred fifty thousand dollars ($150,000.00) on the universality of all the property of the Company (the "Hypothec").

Under the terms of the Promissory Notes, the outstanding principal and accrued interest would become immediately due and payable on demand by the Lender upon the occurrence of any of the Events of Default enumerated therein, including the following:

- a judgment for the payment of money in a cumulative amount in excess of $25,000.00 in the aggregate is rendered against the Company and the Company has not provided from the discharge thereof in accordance with its terms within 30 days from the date of entry thereof.

A judgment in the principal amount of $98,370.00 was rendered against the Company on October 20, 2008 in Quebec Superior Court file 500-17-027321-051, as reported in press release "SYSCAN RELEASES 2008 AUDITED RESULTS, SHAREHOLDER APPROVAL OF BOTH THE 40 TO 1 SHARE CONSOLIDATION AND PRIVATE PLACEMENT, AND A NEGATIVE COURT JUDGEMENT IN QUEBEC", dated October 30, 2008.

As a consequence, and in accordance with the terms of the Promissory Notes, the Lender has declared the outstanding principal amounts advanced under the Promissory Notes, and all accrued and unpaid interest upon, namely the sum of $207,520.55, immediately due and payable by the Company to the Lender no later than Monday, November 24, 2008 at 12:00 PM. The Letter of Demand further states that should the Company fail to provide a certified check in the amount of $207,520.55 payable to the Lender's counsel in trust, they have been instructed to institute all necessary legal proceedings against the Company.

The Company is reviewing the Letter of Demand with legal counsel and investigating its options and alternatives.

About Syscan International Inc.

Syscan is a unique 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 applications for the food and pharmaceutical and military sectors. Shares of Syscan trade on the TSX Venture Exchange under the symbol SYC. There are approximately 1.2 million shares outstanding after a recent 40 to 1 share consolidation and change of its trading symbol from SYA to SYC.

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.

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