Fiber Optic Systems Technology, Inc.

Fiber Optic Systems Technology, Inc.

April 07, 2006 09:42 ET

FOX-TEK Reports 2005 Year End Results

TORONTO, ONTARIO--(CCNMatthews - April 7, 2006) - Fiber Optic Systems Technology, Inc. (TSX VENTURE:FOX)(the "Company" or "FOX-TEK"), a developer of patented fiber optic sensing products, today announced its financial and operating results for the year ended December 31, 2005. The annual statements can be viewed at our website at and have been filed on SEDAR ( All amounts are expressed in Canadian dollars unless otherwise noted.

Among the highlights of the year ending December 31, 2005:

- The Company made the first commercial sales of its FT sensor system to a major North American oil and gas pipeline company.

- The ongoing test installation with Saudi Aramco at the Abqaiq plant successfully completed its first stage and proceeded to the qualification phase.

- Saudi Aramco authorized a second operating installation at their Riyadh refinery.

- The Company increased its sales capacity by adding a Director of Sales Canada and by entering into further agency agreements with parties in Africa, Mexico and the Middle East.

- More than $4,200,000 was raised from the conversion of warrants and the exercise of options.

- FOX-TEK and Saudi Aramco jointly delivered a paper at a major oil & gas conference in the Middle East that explained how the FOX-TEK system helps solve corrosion problems in refineries.

"FOX-TEK's performance during 2005 met management's expectations", said Gary Jolly, FOX-TEK President & CEO, "As an early stage growth company, FOX-TEK's results are best quantified through corporate accomplishments in addition to financial performance. In particular, we are pleased that our numerous test operations with several customers are now beginning to realize commercial success"

Financial Review

For the twelve months ended December 31, 2005, FOX-TEK reported revenue of $117,000 compared to $49,000 in 2004. The net loss for 2005 was $2,944,000 or $.10 per share compared to a loss of $2,228,000 or $.14 per share in 2004. The increased loss was primarily due to an increase in expenses.

About Fiber Optic Systems Technology

Established in 2000, FOX-TEK has developed patented fiber optic sensing products that deliver a cost-effective solution for companies to continually monitor their critical infrastructure and detect and prevent high-consequence or catastrophic occurrences. The company's primary market is the global oil and gas industry, for the monitoring of pipelines and refineries. In addition to its monitoring systems, FOX-TEK delivers a full range of professional services to its customers, including engineering design services, training, supervision of on-site installation and turnkey fiber optic sensing systems. FOX-TEK is headquartered in Toronto, Ontario and is traded on the TSX Venture Exchange under the symbol "FOX".

This press release contains forward-looking statements based on assumptions, uncertainties, and managements' 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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