January 23, 2008 08:00 ET

Syscan Preliminary Results Show 265% Revenues Increase for First Half 2008

MONTREAL, QUEBEC--(Marketwire - Jan. 23, 2008) - Syscan International Inc.(TSX VENTURE:SYA) today reported preliminary results for the second quarter of fiscal 2008 ended December 31, 2007, which continues a trend of consecutive quarters posting significant sales increases.

The Company's growth strategy is continuing to show positive results. Sales increased 240% for the three-month period to $1,433,772 over $421,970 in the second quarter of the previous year. Beginning in the last quarter of fiscal 2007 the Company has posted jumps in revenues for four consecutive quarters, showing a trend that really accelerated in the first quarter of fiscal 2008 when a 297% increase in revenues was reported. Both periods were propelled by a previously announced C$2 million purchase order (A$2.2 million) from the Australian subsidiary which is nearing fulfilment and will be 100% delivered in the 3rd fiscal quarter.

The following shows total results for the six months ended December 31, 2007, compared to six months ended December 31, 2006:

1st Half 1st Half
FY 2008 FY 2007 % Change
Revenues $2,726,917 $747,698 Up 265%
Cost of Sales $1,819,684 $337,967 Up 438%
Gross Margin $907,233 $409,731 Up 121%
Operating Expenses $1,166,176 $626,311 Up only 86%
Net Profit (Loss) $(364,196) $(372,400) Cut 2.2%

Joseph Tassone, President and CEO of Syscan said "The second quarter results validate our chosen strategy to accelerate growth by combining both organic sales increases and acquisitions. The last two quarters have exceeded our projections and the outlook for the remainder of fiscal 2008 is for continued but more moderate growth. Management's opinion is these results show that Syscan is on a promising track to break-even operations."

The increase in sales, good margins and discipline surrounding administrative costs all contributed to the Company keeping its net loss comparable to that of the first half of the previous fiscal year while considerably generating more revenue.

Further acquisition opportunities continue to be pursued to add to the Company's offerings for the agricultural, security & ID and life science verticals.

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 healthcare sectors. Shares of Syscan trade on the TSX Venture Exchange under the symbol SYA. There are approximately 47.2 million shares outstanding.

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