C-Chip Technologies Corporation

C-Chip Technologies Corporation

March 14, 2005 16:30 ET

C-Chip Acquires Avensys, a Fiber Optics Sensor Company with Revenues of CDN$13.4M in 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: C-CHIP TECHNOLOGIES CORPORATION

OTC Bulletin Board, FRANKFURT SYMBOL: CCHI

MARCH 14, 2005 - 16:30 ET

C-Chip Acquires Avensys, a Fiber Optics Sensor Company
with Revenues of CDN$13.4M in 2004

MONTREAL, QUEBEC--(CCNMatthews - March 14, 2005) - C-Chip Technologies
Corporation (OTCBB:CCHI)(Frankfurt:CCHI)

A Major Step Forward in the Broadened Mission to Global Risk Management

C-Chip Technologies Corporation (OTCBB:CCHI) (Frankfurt: CCP-WKN:
255471) is pleased to announce that it has concluded the acquisition of
Avensys Inc. (www.avensys.ca), a leader in risk management monitoring
solutions for commercial and industrial buildings, infrastructures and
various environments.

In consideration for the acquisition, C-Chip issued 10,400,000 of its
restricted common shares to over 70 selling shareholders of Avensys.
Under an escrow agreement, the restricted shares issued by C-Chip will
be released to the shareholders of Avensys over an 18 month period. The
transaction between C-Chip and the shareholders of Avensys is valued at
$9.75 million Canadian dollars. In its latest fiscal year, ended May
2004, Avensys reported revenue of $13.4 million Canadian dollars and was
profitable.

Stephane Solis, President & CEO of C-Chip stated: "Avensys will become a
central part of C-Chip's risk management offerings with important
potential cross-effects for our overall security portfolio. The Avensys
technology is an important tool in providing real-time early warning and
measuring for potential natural and industrial disasters and other
conditions. Furthermore, Avensys presents significant potential for long
term growth through its world leading R&D program in optical sensing
technologies. With already sizeable revenue in a very fragmented but
rapidly growing market for environmental monitoring solutions, it is our
intent to position Avensys as an agent of growth through both organic
expansion and market consolidation initiatives. I am thrilled to welcome
Avensys in the C-Chip family."

Avensys offers leading edge fiber optics sensor technology to monitor a
variety of environments, including air, water, soil as well as buildings
and infrastructures. The reputation of Avensys has been built on years
of experience in solving environmental monitoring problems, from micro
scale in-building sensing systems to the real time monitoring of
temperature, humidity, pressure or chemical levels to macro scale
wireless landslide and flood warning systems in different countries.
Through integrated solutions and services branded under the name
SenseYourWorld™, Avensys combines skills, staff and the knowledge to
integrate multiple monitoring technologies to deliver real-time,
automated, cost-efficient data to business users requesting increased
market intelligence.



Projects conducted by Avensys have included:

- Complete suite of fiber optic wireless & Internet monitoring
solutions for the environment and geotechnical industries with beta
sites in place for strain sensing solutions in China and the USA.
- Complete integrated wireless solutions to monitor various gas
emissions from client's landfills for methane and other gases.
- Implementation of a manual on site water level monitoring system
for different rivers in British Guyana.
- Implementation of a dedicated phone line system to monitor land
slide risks on the hills surrounding Hong Kong.
- Implementation of a Dial Up based system for the monitoring of road
conditions in Quebec (Temperature/Ice).


"Avensys currently benefits from operating the largest manufacturing
capacity of Fiber Bragg Gratings in the world, which is the underlying
technology for its temperature, pressure, humidity and strain sensors
and the basis for future chemical sensors. Avensys' future generation of
sensors will leapfrog ahead of existing measurement methods currently
based on laboratory tests," further commented Stephane Solis, President
and CEO of C-Chip.

With over 1000 established customers in North America, Europe and Asia,
Avensys benefits from an excellent reputation as well as a strong
clientele base to create market traction for its products and solutions.
Avensys has offices in Montreal, Toronto, Vancouver and an R&D
laboratory in Trois-Rivieres.

The Avensys acquisition is the third to be completed by C-Chip since its
announcement earlier this year that it would enlarge its mission. From
the outset, C-Chip's mission had centered on developing risk management
solutions. This has included the development of cutting edge anti-theft
systems for the automotive and power sport vehicle markets, as well as
web-based asset tracking and Credit Management systems which give credit
granters the ability to monitor and control their leased or financed
assets. Subsequent events have reinforced our opinion that the Security
industry, and the broader Risk Management industry, offer significant
opportunity for growth. The new broadened goal is to quickly attain a
leading position within this industry, through internal growth and an
aggressive acquisition program.

Our growth model is simple; in the Risk Management industry,
consolidation through an acquisition policy presents an excellent growth
opportunity. There are substantial hedging opportunities in buying
privately-held companies, as there is a clear discrepancy between the
value assigned to publicly traded companies in that sector and what they
can be purchased for on a private basis. In seeking to maximize
shareholder value, our management intends to make the most of this
discrepancy.

About C-Chip Technologies Corporation

C-Chip Technologies Corporation operates in the risk management
industry, offering both solutions and security services. C-Chip itself
is positioned in an emerging and rapidly growing industry that is about
interconnecting machines with IT infrastructures and mobile assets. We
integrate wireless communications, online transactions, software
applications, RFID technology, the Internet and, when location is
required, GPS technology to enable business users to efficiently access,
control, manage and monitor remote assets at low costs. Through its
wholly-owned subsidiary Avensys, C-Chip also offers risk management
solutions enabling business and corporations to monitor different types
of environments, including Air, Soil, Water as well as buildings and
infrastructures.

Through wholly-owned subsidiaries, Canadian Security Agency (2004) Inc.
and Chartrand Laframboise Investigation, C-Chip also provides
corporations and institutions security services including corporate
investigation, surveillance, electronic monitoring and protection of
personnel and premises.

C-Chip's goal is to be recognized as a leading provider of security
services and risk management solutions used by corporations and
institutions. Detailed information on our risk management solutions,
their applications and our security services is available on our web
site at www.c-chip.com

FORWARD-LOOKING-STATEMENT: Except for factual statements made herein,
the information contained in this press release consists of
forward-looking statements that involve risks uncertainties, including
the effect of changing economic conditions, competition within the
credit and security industry, customer acceptance of products and other
risks and uncertainties. Such forward looking statements are not
guarantees of performance, and C-Chip Technologies Corporation results
could differ materially from those contained in such statements. These
forward-looking statements speak only as of the date of this release and
C-Chip Technologies Corporation undertakes no obligation to publicly
update any forward-looking statements to reflect new information, events
or circumstances after the date of this release.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    C-Chip Technologies Corporation
    Mr. Stephane Solis
    President & CEO
    (514) 337-2447
    ssolis@c-chip.com