SOURCE: Coda Octopus Group, Inc

October 25, 2005 10:39 ET

Coda Octopus Delivers First Four Echoscope 3D Real Time Underwater Imaging Sonars

New Cutting Edge Technology Vastly Outperforms Conventional 2D Subsea Sonars; Harbor and Port Security Concerns Expected to Spur Strong Worldwide Echoscope Demand Among Homeland Security and Defense Customers

NEW YORK, NY -- (MARKET WIRE) -- October 25, 2005 -- Coda Octopus Group, Inc (OTC: CDOC), a market leader in underwater technology, announced today that it has delivered its first four Echoscope 3D imaging sonars to defense and commercial customers worldwide. While the Echoscope is attracting intense interest around the world -- largely for its homeland security and defense applications -- the company anticipates that it will be put into operational use very quickly for this as well as other planned initial applications including cable laying, pipeline monitoring and obstacle avoidance.

Revenue Generation And Market Growth

The company said that the four units delivered were sold for an average price of $165,000 each (an aggregate of approximately $650,000) and are part of an initial $1.5 million+ order backlog of 10 units.

Jason Reid, President and CEO of Coda Octopus, stated, "The commercialization of the Echoscope after years of testing and development brings our company to a very rewarding new stage as we begin to ramp up production capabilities to meet anticipated worldwide demand. Over the next few years we believe the market for the Echoscope will grow to hundreds of units per year, spurred largely by homeland security and defense concerns."

Unique, Highly Portable 3D Technology Permits The Echoscope To "See" Underwater Bomb Threats And Intruders In Real Time

Employing unique and patented sonar technology, Echoscope generates intuitive and precise 3D real time images of the underwater world, of objects that are both moving and static, providing almost a hundred times more information than anything similar on the market. The generation of real time 3D images is a significant advance on the current widely used 2D technologies with each 3-dimensional 360 degree image encompassing height, width, depth in real time, compared to the height and width view provided by 2-dimensional technology.

The result of a multi year effort to bring the benefits of 3D technology to the underwater sonar market place, the Echoscope was first introduced in 1999 as the Echoscope 1600, the first working prototype 3D sonar ever produced. Subsequently, the original system was completely re-designed, resulting in a four-fold increase in performance as well as a 50% reduction in size and minimal cost increase. With over 2,300 active channels generating over 16,000 simultaneous sonar beams to create stunning 3D underwater images in real-time with centimeter resolutions, the Echoscope is ideal for a wide range of civil and defense applications. Extremely compact -- about the size of a large briefcase -- the Echoscope can be rapidly deployed from almost any boat or fitted to underwater vehicles enabling extremely rapid and precise underwater surveys of ports, harbors, ships-hulls or other structures for reconnaissance and security purposes. Among the first systems delivered is a 3000 meter-rated unit for deep water operations, which further expands the capability and applications of the system, particularly for oil and gas operations in the rapidly expanding ultra deep water market.

On The Path To Becoming The World's Leading Sonar Technology Company

Commenting further, Mr. Reid stated, "Although the development program has taken longer than originally expected, and the process of production will continue to be gradual, this is not surprising given the mammoth task undertaken by our teams in Norway and the UK, and is an exceptional achievement. While much of the current worldwide interest in the Echoscope is largely focused on its obvious homeland security and defense applications, its underlying technology is a great leap forward providing an enormous range of commercial possibilities. Looking ahead, we see it forming a base for a number of new sonars which will capitalize on its powerful, yet highly flexible architecture and which we hope will establish Coda Octopus as the world's leader in sonar technology."

About Coda Octopus

Founded in 1994 as Coda Technologies, Coda Octopus is recognized internationally as a leading developer of underwater technologies for imaging, mapping, defense and survey applications. Based in New York, with R&D and manufacturing facilities in the UK and Norway, its key products include Octopus precision motion sensors, Coda and Octopus marine software and systems, Octopus thermal printers and the unique Coda Echoscope -- the first real-time 3D subsea sonar -- with particular applications in the homeland security and construction markets. With this patented new product, which revolutionizes subsea visualization, Coda Octopus believes it is well on its way to becoming the world's leading sonar technology company.

For further information about the Echoscope, please visit http://www.codaoctopus.com/3d_ac_im and for more information about Coda Octopus visit http://www.codaoctopus.com, or contact Coda Octopus at info@codaoctopus.com

Safe Harbor Statement: Except for historical information, the matters set forth herein, which are forward-looking statements, involve certain risks and uncertainties that could cause actual results to differ. Potential risks and uncertainties include, but are not limited to, market acceptance of Coda Octopus' planned products and their level of sales, the competitive environment and successful technical and economic implementation.

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