Fiber Optic Systems Technology, Inc.

Fiber Optic Systems Technology, Inc.

November 29, 2010 18:45 ET

FOX-TEK Announces Q3 Results

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2010) - Fiber Optic Systems Technology, Inc. ("FOX-TEK"), (TSX VENTURE:FOX), a developer and manufacturer of patented non-intrusive sensing systems, today announced Q3 results from operations and the first consolidated results after the reverse takeover, ("RTO") by Marcon International Inc. ("Marcon").

The unaudited interim consolidated financial statements reflect the acquisition of Marcon by FOX-TEK in compliance with Emerging Issues Committee – 10, Reverse takeover accounting ("EIC-10"), issued by the Canadian Institute of Chartered Accountants. The result of following this accounting pronouncement is that the consolidated income statement reflects the activity of Marcon from August 1, 2010 to the September 30, 2010, (date of Marcon reorganization prior to the RTO to the end of the quarter). In addition, the statement includes the consolidated results of FOX-TEK from the date of the RTO, September 24, 2010, to September 30, 2010. The consolidated balance sheet has been prepared on the basis of Marcon acquiring FOX-TEK and reflects the equity section of Marcon on a post acquisition basis which is also in compliance with EIC-10. Readers of the financial statement are encouraged to read the accompanying Management Discussion and Analysis where the quarterly results of FOX-TEK on a pre RTO basis are described in greater detail. 

About Marcon, FOX-TEK:

Marcon is an Ontario based, industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co. 

"FOX-TEK" develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling, and process pressure and temperature. FOX-TEK's FT fiber optic sensor and PinPoint systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks. 

Marcon, FOX-TEK have offices in Oakville, ON; Toronto, ON and Alberta; FOX-TEK is traded on the TSX Venture Exchange under the symbol "FOX". For more information, visit

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in FOX-TEK's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. FOX-TEK has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

Investors are cautioned that, except as disclosed in the Filing statement currently posted on SEDAR and prepared in connection with the transaction, any information released or received with respect to the RTO may not be accurate or complete and should not be relied upon. Trading in the securities of FOX-TEK should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

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