SYSCAN INTERNATIONAL INC.
TSX VENTURE : SYA

SYSCAN INTERNATIONAL INC.

October 27, 2006 14:15 ET

Syscan Releases 2006 Results

MONTREAL, CANADA--(CCNMatthews - Oct. 27, 2006) - Syscan International (TSX VENTURE:SYA) today released its results for the year ended June 30, 2006. Sales for the year fell to $1,397,258 primarily due to a decrease in mobile printer related sales from $2,369,997.08 in 2005 to $583,681.21 in 2006. Operating expenses were $1,957,583 compared to $1,799,886 in fiscal 2005. The Company reported an operating loss of $1,656,372 compared to $897,891 in fiscal 2005, primarily as a result of the decline in sales, and allowances for inventory devaluation and accounts receivable. Cash used in operations fell to $1,315,439 from $1,532,309. Research and Development expenses grew to $765,415 from $308,797, an increase of 148% as RFID based application development was accelerated in preparation for commercialization. At the end of the year, working capital stood at $906,578 and there was no bank debt.

Mr. Axel Striefler, President and CEO of Syscan said, "Fiscal 2006 was a difficult year for the Company as demand for our rugged mobile printers declined significantly due to competition from smaller, less expensive thermal printers. Nevertheless we have made tremendous strides with our RFID applications which represent the future of the Company. We are looking forward to strong growth in 2007 as we commercialize our solutions in the food, pharmaceutical and military sectors. We are particularly excited about the forthcoming implementation of our RFID based solutions in conjunction with Quebec's mandated agricultural traceability programs across the province. When implemented, the system will undoubtedly be the most sophisticated and effective in the world. We are expecting additional military contracts this year and our pharmaceutical solutions are also attracting significant interest.

In other corporate news, the Company announced that Mr. Wilhelm Gantner has resigned as a Director and thanked him for his contribution over the last several years.

To view the Company's financial documentation visit www.sedar.com.

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 healthcare sectors. Shares of Syscan trade on the TSX Venture Exchange under the symbol SYA. There are approximately 39.4 million shares outstanding.



SYSCAN INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED JUNE 30, 2006
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2006 2005

$ $
SALES 1,397,258 3,274,142

COST OF SALES 1,096,047 2,372,147

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GROSS MARGIN 301,211 901,995

EXPENSES

Administrative 901,648 920,346
Selling 562,433 740,627
Allow ance for inventory devaluation 283,405 -
Decrease in valuation of investment 52,600 -
Amortization of intangible assets 43,235 26,781
Loss on exchange 41,465 47,212

Loss on disposal of fixed
and intangible assets 41,230 9,968
Amortization of fixed assets 19,079 47,258
Financial 12,488 7,694
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1,957,583 1,799,886
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OPERATING LOSS (1,656,372) (897,891)
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RESEARCH AND DEVELOPMENT COSTS (765,415) (308,797)
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LOSS BEFORE INCOME TAXES (2,421,787) (1,206,688)

INCOME TAXES - -
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NET LOSS (2,421,787) (1,206,688)
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The TSX Venture Exchange has not reviewed this release and it does not accept responsibility for its adequacy or accuracy.

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