ACTIVE CONTROL TECHNOLOGY INC.
TSX VENTURE : ACT

ACTIVE CONTROL TECHNOLOGY INC.

December 22, 2010 16:00 ET

Active Control Releases Fiscal 2011 First Quarter Results

Delivers Significant Improvement in Gross Profit of 31.3%

TORONTO, ONTARIO--(Marketwire - Dec. 22, 2010) - Active Control Technology Inc. (TSX VENTURE:ACT), a leading provider in the design, manufacture and marketing of both wireless and fiber network solutions for mine communications, and the commercial security and access control industries, today announced its financial results for the first quarter of fiscal 2011 ending October 31, 2010.

The Corporation generated revenues of $776,328 during the quarter ended October 31, 2010, as compared to $1,343,410 in the quarter ended October 31, 2009. Revenues dropped as a consequence of no new ActiveMine™ installations begun during the quarter, whereas there were 3 new installations begun in the corresponding period ended October 31, 2009.

The Corporation generated gross profit of $242,777 during the quarter ended October 31, 2010, as compared to a gross profit of $291,390 in the quarter ended October 31, 2009, due to the revenue decline identified above. However, gross profit per cent did improve from 21.7% to 31.3%, primarily due to the implementation of product cost reduction initiatives.

"I am pleased to see that the efforts of our operations and product development teams have delivered better product margins," said Peter Gimon, CFO and COO.

The Corporation incurred a net loss of $465,485 or $(0.00) per share during the quarter ended October 31, 2010, as compared to a net loss of $1,322,549 or ($0.01) per share for the quarter ended October 31, 2009.

Free cash flow usage during the quarter ended October 31, 2010, defined as cash used in operating activities plus investing activities, was $227,160, as compared to $822,956 during the quarter ended October 31, 2009. This was the second consecutive quarter where free cash flow usage was less than $250,000. The Corporation will continue to focus heavily on this metric until positive free cash flow is achieved while a new round of financing is pursued.

The Corporation has also re-scheduled its Annual Shareholders' Meeting to be held on Thursday February 10, 2011.

About Active Control Technology

Active Control Technology is involved in the design, manufacture and marketing of both wireless and fiber network solutions for mine communications, and the commercial security and access control industries. The Corporation has two product lines: ActiveMine™, a new fully integrated wireless and/or fiber communications and locating technology for underground coal mines, and ActiveSecure™, a family of wireless products for the access control industry. Located in Burlington, Ontario, Canada, Active Control Technology trades publicly on the TSX Venture Exchange under the symbol ACT. For more information, visit www.activecontrol.com.

The unaudited financial statements for the first quarter ended October 31, 2010 and October 31, 2009, and management's discussion and analysis of the results of operations can be found at www.sedar.com.

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Cautionary Note Regarding Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and, as such, are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the Company or the materials required to produce those products, labour relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. The reader is cautioned not to put undue reliance on such forward-looking statements.

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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