Cantronic Systems Inc.
TSX VENTURE : CTS

Cantronic Systems Inc.

December 01, 2006 16:51 ET

Amalgamation of Cantronic and QWIP Completed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 1, 2006) - Cantronic Systems Inc. ("Cantronic" or Amalco") (TSX VENTURE:CTS) is very pleased to announce that the amalgamation of Cantronic Systems Inc. ("Old Cantronic") and QWIP Systems Inc. (TSX VENTURE:QWP) ("QWIP" and together with Old Cantronic, the "Predecessor Companies") has now been completed. The common shares of Amalco are expected to commence trading on the TSX Venture Exchange (the "TSXV") on or before the end of next week, under the trading symbol CTS.

The common shares of the Predecessor Companies will be delisted from the TSXV immediately before the Amalco common shares commence trading on the TSXV. Registered shareholders of both Predecessor Companies will receive Letters of Transmittal to affect the exchange of their Old Cantronic and/or QWIP common shares into common shares of Amalco as per the exchange ratio set out in the October 10, 2006 joint press release from the Predecessor Companies.

Amalco will have 57,243,447 common shares issued and outstanding upon listing.

About Cantronic Systems Inc.

Cantronic is a leader in infrared night vision technology, 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 applications. Cantronic's products have achieved breakthrough performance characteristics, including viewing distances of 800 meters for its active infrared night vision camera. Cantronic has formed strategic relationships with various world-class electro-optic companies, integrators, software and network designers to enable Cantronic to offer an effective alternative to conventional cameras and surveillance systems. Cantronic serves a rapidly expanding worldwide base of military, government, commercial and residential customers. Cantronic has also been approved by Health Canada as a Medical Device manufacturer and is working on using imaging as a diagnostic tool for breast cancer screening. In addition, Cantronic's Fever Scan M3000 is currently being used in several airports around the world for detection of fever-borne illness such as SARS and the Avian Flu. Cantronic's technology has been widely featured by national and local media.

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. This technology, developed by the renowned NASA Jet Propulsion Laboratory in Pasadena, California, has many applications in defense as well as in the field of security and surveillance. To date, in excess of US$15 million has been spent on developing the technology, which, in April 2001, was inducted into the NASA Space Technology Hall of Fame. QWIPTECH is currently developing of an aerial land mine detection system for the US Army Research Laboratory. It has also been contracted by SELEX (formerly BAE Systems), a world-renowned leader in infrared systems, to supply infrared detectors for their Sigma Hunter large format infrared camera.

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

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

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