QWIP Systems Inc.

October 23, 2006 14:47 ET

QWIP Announces Mailing of Meeting Materials and Filing of Restated Q2 Interim Financial Statements and MD&A

EDMONTON, ALBERTA--(CCNMatthews - Oct. 23, 2006) - QWIP Systems Inc. ("QWIP") (TSX VENTURE:QWP) is pleased to announce that the Notice of Meeting, Information Circular and other meeting materials will be mailed to the shareholders of QWIP on October 25, 2006. The annual general and special meeting of the shareholders of QWIP will be held on November 17, 2006, whereby the shareholders will vote on, among other things, the amalgamation between QWIP and Cantronic Systems Inc., previously announced on October 10, 2006 and June 13, 2006.

QWIP further announces that on October 23, 2006, it filed restated interim financial statements and MD&A for the six months ended June 30, 2006, which may be reviewed on the SEDAR website at www.sedar.com.

The revisions reflect a write down of certain technology assets in the amount of $521,545, as a result of the review by Kingston Ross Pasnak LLP.

About QWIP Systems Inc.

QWIP, through its US subsidiary QWIPTECH, holds a worldwide exclusive license from the California Institute of Technology ("Caltech") to produce and sell infrared detectors and sensors based on Caltech's Quantum Well Infrared Photodetector technology. This technology, developed by the renowned NASA Jet Propulsion Laboratory in Pasadena, California, has many applications in defense as well as in the field of security and surveillance. To date, in excess of US$15 million has been spent on developing the technology, which, in April 2001, was inducted into the NASA Space Technology Hall of Fame. QWIP is currently developing of an aerial land mine detection system for the US Army Research Laboratory. It has also been contracted by SELEX (formerly BAE Systems), a world-renowned leader in infrared systems, to supply infrared detectors for their Sigma Hunter large format infrared camera. QWIP trades on the TSX Venture Exchange under the symbol QWP. For further information, please visit our two websites at www.qwipsystems.com and www.qwip.com.

TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the contents of this news release.

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