SYSCAN INTERNATIONAL INC.
TSX VENTURE : SYA

SYSCAN INTERNATIONAL INC.

November 29, 2006 13:00 ET

Syscan Reports Improved First Quarter Results

MONTREAL, CANADA--(CCNMatthews - Nov. 29, 2006) - Syscan International Inc. (TSX VENTURE:SYA) today reported its results for the quarter ended September 30, 2006.

Sales for the three-month period were $325,728 compared to $253,191 in the previous year, an increase of 28.6 %. The Company's strategy to leverage pricing and costs paid off as gross margin rose to 55.4% compared to 35.5% in the previous year.

Operating expenses were $279,559 compared to $388,864 in fiscal 2005, down 28.1%. The decrease was largely attributable to a decline of $52,943 in administrative expenses due to lower tenancy and share based remuneration costs; as well as a decline of $23,570 in foreign exchange losses as the Canadian dollar remained steady against its U.S. counterpart.

The increase in sales, higher margins and lower administrative costs all contributed to the Company cutting its operating loss 67% to $98,921 for the quarter compared to an operating loss of $299,018 in the previous year.

As of September 30, 2006, the Company had net working capital of $697,638 and there was no bank debt.

Axel Striefler, President and CEO of Syscan said, "Our first quarter indicates that we are on the right track operationally and have sufficient current resources. With anticipated implementations in the food, pharmaceutical and military sectors, we expect a much improved performance this year."

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.

To receive Company press releases, please email ana@chfir.com and mention Syscan on the subject line.



SYSCAN INTERNATIONAL INC.
STATEMENT OF LOSS
For the three months ending
September 30, 2006
(Unaudited)
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2006 2005
3 months 3 months
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$ $
SALES 325,728 253,191

COST OF SALES 145,090 163,345
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GROSS MARGIN 180,638 89,846
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EXPENSES
Administrative expenses 172,889 225,832
Selling expenses 107,655 116,695
Depreciation of fixed assets 4,034 7,200
Depreciation of intangibles 4,021 10,809
Loss on exchange 1,857 25,427
Financial expenses 48 2,901
Reduction of inventory provision (4,000) -
Gain on debt redemption (6,945) -
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279,559 388,864
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OPERATING LOSS (98,921) (299,018)

RESEARCH AND DEVELOPMENT COSTS (120,839) (106,350)
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NET LOSS (219,760) (405,368)
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The TSX Venture Exchange has not reviewed this release and it does not accept responsibility for its adequacy or accuracy.

Contact Information

  • Syscan International Inc.
    Darrell Munro, BBA, LLB
    613-762-4262
    info@syscan.com
    dmunro@syscan.com
    or
    Syscan International Inc.
    Syscan Customer Information
    514-631-7144 or 1-888-479-7226
    or
    CHF Investor Relations
    Jeanny So
    416-868-1079 ext. 225
    jeanny@chfir.com
    or
    CHF Investor Relations
    Cathy Hume, CEO
    416-868-1079 ext. 231
    cathy@chfir.com