December 12, 2008 12:15 ET

Syscan International Announces Intent to Make an Assignment to a Trustee Pursuant to the Banruptcy and Insolvency Act

MONTREAL, CANADA--(Marketwire - Dec. 12, 2008) - Syscan International Inc. ("Syscan" or the "Company") (TSX VENTURE:SYA) today announced that it has resolved to make assignment pursuant to the Bankruptcy and Insolvency Act to a Trustee to handle matters with its creditors.

The assignment is a result of the Company having received notice of the Hypothec enforcement from the courts, associated with a secured Bridge Loan (the "Loan) the Company had obtained from Bluehill ID, AG (the "Lender"), a company with headquarters in Switzerland. Demand for the Loan had been made as announced on November 21, 2008 (See Syscan International Announces Letter Of Demand In The Amount Of C$ $207,520 For a Previously Announced Bridge Loan). The Board of the Company decided to pursue this course of action after the expected Private Placement with Bluehill ID failed to materialize and after previous attempts to raise capital and affect a company merger and sale were unsuccessful.

The secured Loan was first time entered on August 29, 2008 and subsequently increased on October 3, 2008 for a total of $200,000. The Company signed two (2) promissory notes pursuant to which the Company unconditionally promised to pay to BlueHill, said amount bearing interest, at a nominal rate of 18% per annum (the "Promissory Notes"). Moreover, on August 29, 2008, the Lender and the Company entered into a movable hypothec Agreement (the "Hypothec") which guarantees the payment by the Company under the Promissory Notes on the universality of all the property of the Company (the "Hypothec").

In accordance with the terms of the Promissory Notes, the Lender declared the outstanding principal amounts advanced under the Promissory Notes, and all accrued and unpaid interest upon, immediately due and payable by the Company to the Lender. Without the means to pay the Lender and with the institution of proceedings to seize all the company assets the Board decided to petition the court to appoint a Trustee to manage the affairs of the company with its creditors in accordance statutory requirements.

About Syscan International Inc.

Syscan is a unique 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 applications for the food and pharmaceutical and military sectors. Shares of Syscan trade on the TSX Venture Exchange under the symbol SYC. There are approximately 1.2 million shares outstanding after a recent 40 to 1 share consolidation and change of its trading symbol from SYA to SYC.

Forward-looking statements: This news release may contain forward-looking statements that relate to future events or expectations of future performance. Forward looking statements reflect management's current beliefs and are based on information presently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. The forward-looking statements are made as of the date hereof and Syscan does not assume any obligation to update or revise them to reflect new events or circumstances.

The TSX Venture Exchange has not reviewed this release and it does not accept responsibility for its adequacy or accuracy.

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