Extreme CCTV Inc.

Extreme CCTV Inc.

August 01, 2006 17:12 ET

Extreme CCTV Completes Acquisition of Forward Vision CCTV, Broadening its Engineering and Product Strengths

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 1, 2006) - Extreme CCTV Inc. (TSX:EXC), the global leader in the design, development and manufacture of active-infrared surveillance equipment, today announced that it has completed the acquisition of 100% of the outstanding shares of Forward Vision CCTV Ltd. ("Forward Vision").

The acquisition was closed on July 31, 2006 for consideration of approximately C$10.7 million, including $0.4 million in acquisition costs. The consideration was a combination of cash, shares and notes. An overview of the Forward Vision transaction can be found in Extreme's press release dated July 18, 2006.

Forward Vision, which reported sales of approximately Pounds Sterling 3.3 million (C$6.8 million) in its most recently completed fiscal year ended August 31, 2005, has grown sales by 20% or more annually over the past 3 years and has been consistently profitable.

"This is a very exciting acquisition for Extreme that broadens our product portfolio and adds to our world class engineering strengths," stated Jack Gin, President and CEO of Extreme CCTV. "Forward Vision's mechanical PTZ (pan/tilt/zoom) camera products are recognized for their versatility and effectiveness and have become the preferred choice for many UK town-centre surveillance installations. Forward Vision's recent product developments that integrate thermal sensing, radar detection, electronic gyro-stabilization and internet protocol (IP) technology will be complementary to Extreme's vision and strengthens Extreme's future as a global leader in CCTV surveillance."

Extreme's vision is to be the performance leader in advanced day and night surveillance camera technologies. Combining Extreme's expertise in active-imaging optics with Forward Vision's electro-mechanical and software-based control technologies makes for a powerful development team in this context.

Forward Vision is a leading UK designer, developer and manufacturer of intelligent mechanical PTZ cameras, that are unique, compact, and perfected for electro-mechanical and optical performance. The Forward Vision product portfolio is specifically targeted at the security demands of critical infrastructure and Homeland Security. Footage of the terror suspects in the London suicide bombings last year were caught by Forward Vision's flagship security camera, the Mic1-400, which dots the British surveillance landscape at hundreds of locations for surveillance and transportation systems security.

Forward Vision has established a successful niche in the British security market. As a combined company, Extreme will leverage its established global distribution channels to expand the geographic sales of Forward Vision products.

Headquartered in Burnaby, British Columbia, Extreme CCTV Inc. (www.ExtremeCCTV.com) specializes in the design, development, and manufacturing of advanced infrared illuminators and precision-engineered video surveillance products. The Company's common shares trade on The Toronto Stock Exchange under the trading symbol "EXC", with approximately 16.2 million outstanding.

The above disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Extreme CCTV's control, including: the impact of general economic conditions, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Extreme's actual results, performance or achievement could differ materially from those expressed in, or implied by these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, Extreme CCTV will derive therefrom.

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