Cantronic Systems Inc.
TSX VENTURE : CTS

Cantronic Systems Inc.

April 30, 2009 08:00 ET

Cantronic Systems Inc. Awarded its First Safe City Project in China

- The city of Jinan to use AVINFO's technology as core part of its estimated RMB60M Safe City Expansion project - Initial installation has begun

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2009) - Cantronic Systems Inc. ("Cantronic" or the "Company") (TSX VENTURE:CTS) announced today that its AVINFO subsidiary has been selected as the sole supplier of networked video management software technology in support of China Netcom's installation of city-wide networked safety video surveillance system ("Safe City") requirements for the city of Jinan, the capital city of the Shandong Province. The software contract has a value of approximately RMB 2 million ($0.35 million), out of a total project value estimated at RMB 60 million ($11 million). A number of suppliers including AVINFO are bidding for the hardware portion of the project, which must be compatible with AVINFO's software. AVINFO is bidding to supply its encoding/decoding technology and other video related hardware that could increase its contract to RMB 20 million ($3.5million).

This contract win comes on the heels of Cantronic's acquisition of AVINFO in March 2009. AVINFO was selected without going through a public tender in this case because of Jinan City's satisfaction with an early pilot Safe City installation which was built around AVINFO's networked video management software as the centerpiece. AVINFO will be responsible for the provision, installation, training and support of its proprietary software products and services which support a variety of camera technologies being used for the 6,000 camera spots which are expected to be installed in 2009 under the first stage of Jinan's move towards becoming part of the "Safe City" project. Jinan has expressed their intention to add another 10,000 camera spots under a second stage expansion in 2010, using AVINFO software. In addition, Cantronic will have an opportunity to have a larger participation in the syndicate of service providers by selling the Company's hardware products including active infrared cameras, infrared illuminators, low light infrared sensitive CCD cameras and long-range night vision surveillance systems.

"I am extremely pleased with our immediate success in being part of a Safe City project in a large capital city such as Jinan," noted James Zahn, President and Chief Executive Officer of Cantronic Systems Inc. "AVINFO has established its software as one of the leading management platforms for monitoring and surveillance, with small and large installations in some 60 Chinese cities. As these cities expand their networks they are more likely to choose a proven software solution with a user interface that their staff has been trained on. Our success in Jinan is an example of our unique business model which will not only help grow AVINFO's software business but will also create cross selling opportunities for Cantronic and its subsidiaries that offer complementary hardware products and services."

Established in 2002, AVINFO is a leading networked digital video platform solution provider for medium to large-scale networked video surveillance applications. AVINFO's patented proprietary software, products and services compliment Cantronic's patented infrared camera technology and business model. AVINFO's technology platform is a mission critical component of China's "Safe City" projects, which endorses video surveillance across various towns and cities to monitor and control crime, violence and terrorism on a full-time basis. This strategic acquisition will significantly broaden Cantronic's existing product portfolio, revenue growth potential and marks Cantronic's first undertaking in the rapidly growing Chinese security and surveillance market.

About Cantronic

Cantronic 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 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.

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

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