Cantronic Systems Inc.
TSX VENTURE : CTS

Cantronic Systems Inc.

September 07, 2010 08:00 ET

Cantronic Systems Awarded C$3.9-Million Safe City Contract

Wins Bid as Primary Contractor for Haicheng City

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2010) - Cantronic Systems Inc. ("Cantronic" or the "Company") (TSX VENTURE:CTS) today announced its successful bid as the primary contractor for the Safe City project of Haicheng City in China's Liaoning province. The RMB25-million (approximately C$3.9 million) project includes the supply and installation of networked video surveillance cameras systems. The project is expected to be completed within the next three months. Cantronic will receive RMB7.5 million as initial payment before installation commences.

"We are excited to win this bid as primary contractor for the Safe City project of Haicheng City," said James Zahn, President and CEO of Cantronic. "The Safe City initiative is a major growth driver for the video surveillance industry in China, and being a primary contractor for Haicheng is an excellent opportunity for Cantronic to build on our strengths for future similar roles. Haicheng is only one of the cities in Liaoning province, which expects to deploy approximately 500,000 surveillance cameras with an estimated value of up to RMB20 billion over the next three years."

Safe City is a Chinese government-mandated initiative to deploy networked surveillance camera systems in over 660 medium-sized to large cities across China. Haicheng City is Cantronic's second large-scale Safe City project in the province of Liaoning. The Company previously acted as a system integrator to China Unicom, the primary contractor, in the successful completion of the RMB18-million Safe City project for the Heping District of the City of Shenyang, the capital city of Liaoning province.

About Cantronic Systems Inc.

Cantronic Systems Inc. manufactures, distributes, and provides training and services in the fields of infrared vision and video security surveillance technologies, 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 and surveillance application.

Cantronic, through its U.S. 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.

Cantronic, through its China subsidiaries Cantronic Security Systems (China) Co. Ltd., Beijing Advanced Videoinfo Technology Co. Ltd. ("AVINFO"), Shenzhen Huanghe Digital Technology Co. Ltd. ("Yellow River") and Actiontop Electronics (Shenzhen) Co. Ltd. ("Actiontop") provides high-speed and digital networked video surveillance solutions to government and corporate customers in China.

Cantronic is a Tier 1 issuer on the TSX-V exchange, trading under the symbol CTS. For further information about Cantronic and Cantronic China, please visit our websites at www.cantronics.com and www.cantronics.com.cn.

Follow us on Twitter at: http://twitter.com/cantronic.

Forward-looking statements

This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Cantronic Systems Inc. and the markets in which it operates. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Cantronic to be materially different from any future results, performance or achievements expressed or implied by said forward-looking statements. 

Forward-looking statements include, but are not limited to: the completion of the Proposed Transaction, anticipated share capital following completion of the Proposed Transaction, expectations, opinions, forecasts, projections and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".

Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this news release, and Cantronic Systems Inc. assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.

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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