Cantronic Systems Inc.

Cantronic Systems Inc.

March 23, 2009 08:00 ET

Cantronic Systems Inc. Completes Acquisition of AVINFO in China

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2009) - Cantronic Systems Inc. ("Cantronic" or the "Company") (TSX VENTURE:CTS) announced today that pursuant to the news release issued by the Company on March 9, 2009, it has completed the acquisition of a 58.6 percent interest in Beijing Advanced VideoInfo Technology Co., Ltd. ("AVINFO") in Beijing, China. As previously disclosed, Cantronic will pay a total of RMB 9.2 million (approximately CDN$1.7 million) in cash in two phases for the acquisition of its 58.6 percent interest in AVINFO. Cantronic has sufficient cash and cash equivalents to support the capital requirements for both phases.

All of AVINFO management will remain working for either AVINFO or Cantronic China to ensure the smooth and successful integration of AVINFO. Cantronic also agreed to issue up to RMB 8.4 million (approximately CDN$1.2 million) worth of Cantronic common shares to AVINFO management and management consultants under an earn-out performance-based arrangement. All Cantronic common shares issued under such arrangement will be issued one year after the close of the acquisition, at the price to be calculated based on market price at the time of issuance and will have a two-year lock-up period after issuance.

Established in 2002, AVINFO is a leading provider of networked multimedia management solutions for remote monitoring and security surveillance. AVINFO's patented proprietary software, products and services compliment Cantronic's patented infrared camera technology. 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. AVINFO sells its software and related products to government and corporate customers through a direct sales force and through distributors and systems integrators.

"The combination of AVINFO's network management software and Cantronic's camera products will allow us to offer a complete solution in China's rapidly expanding security and surveillance market," stated James Zahn, president and CEO of Cantronic. "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. With AVINFO, Cantronic has improved its product offering, acquired a growing customer base in China and added talented technical and sales management. Cantronic is now well positioned to achieve its China growth strategy."

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 and

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