SYSCAN INTERNATIONAL INC.
TSX VENTURE : SYA

SYSCAN INTERNATIONAL INC.

January 18, 2006 08:00 ET

Syscan Makes RFID Technology Breakthrough

MONTREAL, QUEBEC--(CCNMatthews - Jan. 18, 2006) - Syscan International Inc. (TSX VENTURE:SYA) today announced that it has filed for patent protection on the creation of the world's first low-power dynamic wireless communication network.

Mr. Axel Striefler, President of Syscan, said "This is truly a defining event in the history of Syscan. The significance of what we have done should not be underestimated. Our invention is a great leap forward in the technological evolution of RFID (Radio Frequency Identification) -- not only for solutions in which we specialize but throughout the entire spectrum of RFID. Using this new technology, which we intend to license, significantly more RFID applications will be possible and existing applications can be made to operate more effectively."

"Syscan's R&D team has made tremendous headway in overcoming the most common commercial barriers to the widespread use of RFID, namely read reliability, read range and cost. Compounding our excitement is the fact that we have accomplished all this by creating our own Readers and Tags in-house," added Mr. Striefler.

In the world of the RFID, traditional systems use direct communication between Readers and Tags, provided they are within the Reader's coverage zone. In reality, there are many day-to-day problems that can interfere with the proper transmission of signals between Tags and Readers that either block communications altogether or render them intermittent and, consequently, ineffective. One of the greatest commercial challenges has been the higher costs related to the increased power consumption required to overcome typical communication problems.

Syscan's invention is founded upon an energy-efficient dynamic bi-directional communications protocol that employs transmission windows to dramatically reduce the power consumption of Tag batteries, which comprise a major portion of the per-Tag cost. The Reader can access Tags that would normally be out of range by using other Tags that are within reach as communication bridges that relay the data to the Reader. The architecture of the network can be defined by the Reader or the Tags according to their positions and characteristics. Once configured, the system is equipped with enough intelligence and is sufficiently dynamic to enable it to operate by itself without human intervention, regardless of whether or not there is a change in the position of the Tags or in their environment.

Mr. Striefler continued "Syscan has successfully tested this technology under a myriad of variable conditions and it has performed spectacularly. We expect our first commercial deliveries this quarter."

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 sectors. Shares of Syscan trade on the TSX Venture Exchange under the symbol SYA. There are approximately 34.7 million shares outstanding.

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