DEQ Systems Corp.

DEQ Systems Corp.

April 03, 2007 08:18 ET

DEQ Systems Corp: Announcement

LEVIS, QUEBEC--(CCNMatthews - April 3, 2007) - DEQ Systems Corp. ("DEQ")(TSX VENTURE:DEQ) announces that the Company is unable to file its annual financial statements and its MD&A for the period ended November 30, 2006 by the filing deadline of March 30, 2007.

PricewaterhouseCoopers, the Company's auditors, and the management have indicated that additional time would be required in order to revaluate accounting principles and measures concerning financing facilities granted in the Severn Project in October 2005 and December 2006. This delay will allow sufficient time to properly assess accounting principles as to the correct reporting regarding the Severn Project. The Company's objective is to file its annual financial statements and MD&A for the twelve-month period ended November 30, 2006 no later than April 30, 2007.

The current discussions over accounting matters relate strictly to accounting principles relative to the Severn Project, and have no bearing on the Company's operations, notably in Nevada where material agreements have recently been signed. As well, the Company's financial situation is sound, and all material information concerning its affairs has been properly disclosed.

The Company has applied to the securities commission for a management cease trade order (CTO), which will restrict trading on the Company's securities by the Company's management and insiders until the matter is resolved.

The date that is two months after the filing deadline of the Company's annual financial statements for the period ended November 30, 2006, is May 30, 2007. The securities commissions or regulators may impose an issuer CTO if the financial statements are not filed by that time. An issuer CTO may be imposed sooner if the Company fails to file its Defaults Status Reports on time.

About DEQ Systems Corp.

DEQ is a worldwide provider of gaming technology products including multiple bet electronic side-betting systems. DEQ's products are present in 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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