Fiber Optic Systems Technology, Inc.
TSX VENTURE : FOX

Fiber Optic Systems Technology, Inc.

May 26, 2006 16:30 ET

FOX-TEK Reports First Quarter 2006 Results

TORONTO, ONTARIO--(CCNMatthews - May 26, 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 quarter ended March 31, 2006. The quarterly statements can be viewed at our website at www.fox-tek.com and have been filed on SEDAR (www.sedar.com). All amounts are expressed in Canadian dollars unless otherwise noted.

Among the financial results for the three months ended March 31, 2006, FOX-TEK reported revenue of $19,000 compared to $4,000 in the first quarter 2005. The net loss for the quarter was $1,123,000, or $.03 per share, compared to a loss of $617,000, or $.03 per share in 2005. The increased loss reflects the Company's accelerating product commercialization and the increased investments in sales and marketing resources to support those activities.

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 asssumptions, 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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