SYSCAN INTERNATIONAL INC.
TSX VENTURE : SYA

SYSCAN INTERNATIONAL INC.

January 08, 2007 08:00 ET

Syscan Ensures Number One Distribution Channel in Quebec

MONTREAL, CANADA--(CCNMatthews - Jan. 8, 2007) - Syscan International (TSX VENTURE:SYA) announced today that it has signed an agreement with Agri-Tracabilite Quebec Inc. (ATQ) to distribute its LiveTrack readers throughout the Province of Quebec. Formed in September 2001, ATQ is an organisation whose mandate is to implement an identification and traceability system province-wide for agricultural produce and livestock in Quebec. Under the agreement, ATQ will resell Syscan's LiveTrack RFID based readers to farmers, feed lot operators, auctioneers, veterinarians and other supply chain participants.

Axel Striefler, President of Syscan, stated, "Syscan's involvement with ATQ over the last several years has been integral to the concept development, design and features of the LiveTrack system. Immeasurable benefits have come from the contributions made by those in Quebec's agricultural sector who conducted rigorous on-site testing over the last 18 months and we are thankful to them and to ATQ for their ongoing support."

Linda Marchand, General Director of ATQ, said, "One of the mandates of our organization is to help Quebec's farmers in achieving their tasks related to traceability, in particular by providing them tools that will facilitate the collection and transfer of information in the database. Our collaboration with Syscan International is directly linked with this mandate, and we are very proud of that."

Mr. Striefler added, "The ATQ initiative is the first of its kind in Canada and, in our opinion, is likely to become the model on which many other regional and national programs will be based. With cattle and sheep farms in Quebec numbering approximately 20,000, plus the thousands of other supply chain players who will require readers, ATQ covers a major agricultural market. Following on the heels of Syscan's entree into South America with the LiveTrack system, we expect that fiscal 2007's second half will show solid improvements and provide growing momentum for fiscal 2008."

About Syscan International Inc.

Syscan is a world class supply chain solution provider that delivers integrated real-time tracking and tracing systems that improve business efficiency through Radio Frequency Identification (RFID). Its standardized supply chain solutions include traceability, temperature monitoring and quality control methodologies for the food, pharmaceutical and military sectors. Shares of Syscan trade on the TSX Venture Exchange under the symbol SYA. There are approximately 39.4 million shares outstanding.

About Agri-Tracabilite Quebec

ATQ is an independent not-for-profit organization created in September 2001 to develop and set up ongoing product ID and traceability systems covering both livestock and food produce. Its Board of Directors is made up of representatives of the Union des producteurs agricoles, of the Ministere de l'Agriculture, des Pecheries et de l'Alimentation du Quebec, and of the Financiere Agricole du Quebec. The traceability of livestock between the farm and the slaughterhouse has been implemented since June 2002 in the dairy cattle and beef cattle sectors, and since December 2004 in the ovine sector (lambs and sheep). ATQ is also working on a number of other traceability projects, including the cervid sector (elks and red deer), the transportation of livestock, and the poultry and egg sector.

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