DEQ Systems Corp.
TSX VENTURE : DEQ

DEQ Systems Corp.

November 17, 2006 09:17 ET

DEQ Annonces $6 Million Closing of Short Form Propectus Offering

LEVIS, QUEBEC--(CCNMatthews - Nov. 17, 2006) - DEQ Systems Corp. (TSX VENTURE:DEQ) is pleased to announce the successful completion today of its short form prospectus offering (the "Offering") of Units, resulting in the sale of 15,000,000 Units at $0.40 per Unit, for gross proceeds of $6,000,000. Each Unit consists of one share and one common share purchase warrant. Each warrant entitles its holder to subscribe to one common share at any time before the first anniversary of the closing date of this Offering, upon payment of an exercise price of $0.60 and at any time before the second anniversary of the closing date, upon payment of an exercise price of $0.80.

Earle G. Hall, President and CEO stated: "The successful completion of this financing is a very important step for DEQ. The support from existing and new investors is galvanizing, and we're excited by the prospects for the Company. The net proceeds from the offering will allow us to fulfill our obligations under the ten-year licensing agreement with Severn Enterprises as well as dramatically increase our commercialization efforts in the United States, especially in Nevada."

Canaccord Capital Corporation (the "Agent") has received a commission representing 8% of the gross proceeds of the Offering. In additions, the company has issued 1,500,000 warrants (the "Broker Warrants") in connection with this Offering. Each Broker Warrant will entitle the Agent, upon payment of an exercise price of $0.40, to subscribe to one Unit at any time before the second anniversary of the closing date.

About DEQ Systems Corp

DEQ is a worldwide provider of gaming technology products including multiple bet electronic side-betting systems. DEQ's internationally patented technology enhances performance and the pleasure of existing casino gaming products. DEQ's products are present in more than 200 casinos located in more than 30 countries around the world. DEQ has developed and holds an extensive international patent portfolio that is the basis of the current product line.

Forward-looking statements contained in this Press Release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.

TSX Venture does not accept any responsibility regarding the accuracy of the information contained in this press release.

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