Cantronic Systems Inc.
TSX VENTURE : CTS

Cantronic Systems Inc.

July 14, 2009 10:39 ET

Cantronic Systems Inc. Awarded RMB14M Safe City Project in China

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 14, 2009) - Cantronic Systems Inc., ("Cantronic" or the "Company") (TSX VENTURE:CTS) announced today that the Company has been awarded through public tender a Safe City contract worth approximately RMB14 million (CDN$2.4 million) with the local government in Kaili City. Construction has commenced and it is expected to take approximately three to five months to complete the project.

Kaili, a city with a population of 526,000, is located in Guizhou province in southwestern China. The scope of the project entails a build out of an integrated digital security and video surveillance network for the local public security bureau. Kaili Safe City project is Cantronic's first project acting as a primary contractor for the Safe City projects, which was only made possible after the Company received its National Level Class 1 Construction and Installation licence in April 2009, a required license for acting as primary contractors for the safe city projects nation-wide.

"I am extremely pleased with our ongoing success as part of the Safe City projects in China," noted James Zahn, President and Chief Executive Officer of Cantronic Systems Inc. "We expect this to be one of the fastest growing markets for Cantronic in China, as many cities speed up the implementation of the Safe City project as a way of increased security protection."

"In spite of the global recession, we continue to see strong momentum from security and infrastructure solutions in the Chinese market. We also believe the recent USD$586 billion stimulus package from the Chinese government will provide additional opportunities for our business ahead. We are pleased to be a leading player in China's security market and continue to focus on the execution of our strategic growth plan."

China represents a unique opportunity for Cantronic, as the highly-fragmented Chinese surveillance and security market has been growing at an annual rate in excess of 30 percent. It is estimated the market will reach $43 billion by 2010, according to the China Public Security Guide (published by the Chinese Security and Protection Association) due in part to the Chinese government's mandate for nationwide installation of surveillance and security systems. Programs such as the Safe City initiatives cover 666 cities country-wide.

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, through its China subsidiaries Cantronic Security Systems (China) Co. Ltd., Beijing Advanced Videoinfo Technology Co. Ltd. ("AVINFO") and Shenzhen Huanghe Digital Technology Co. Ltd. ("Yellow River"), provides 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 QWIPTECH, please visit our websites at www.cantronics.com and www.qwip.com.

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