SYSCAN INTERNATIONAL INC.

SYSCAN INTERNATIONAL INC.

February 25, 2005 08:00 ET

Syscan Signs Letter of Engagement For Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SYSCAN INTERNATIONAL INC.

TSX VENTURE SYMBOL: SYA

FEBRUARY 25, 2005 - 08:00 ET

Syscan Signs Letter of Engagement For Private Placement

MONTREAL, CANADA--(CCNMatthews - Feb. 25, 2005) - Syscan International
Inc. (the "Corporation") (TSX VENTURE:SYA) is pleased to announce that
it has entered into an engagement letter with Loewen, Ondaatje,
McCutcheon Limited ("LOM" or the "Agent") whereby the Agent has agreed
to sell, on a best efforts basis by way of private placement,
approximately 4,000,000 units of the Corporation at a price of $0.70 per
unit for gross proceeds of $2,800,000. The net proceeds of this proposed
private placement will be used for working capital.

Each unit (the "Unit") will consist of one common share and one-half of
one common share purchase warrant. Each full common share purchase
warrant will entitle the holder to purchase one common share of the
Corporation at a price of $0.85 per share for a period of two years
after issuance. The Units will be issued pursuant to applicable
prospectus and registration exemptions and subject to a four (4) month
hold period.

LOM has agreed to act as agent on this financing subject to, amongst
other things, the execution of a formal agency agreement and completion
of satisfactory due diligence. As compensation, the Corporation will pay
to the Agent a commission of 6% of the gross proceeds of the proposed
offering and issue agent's warrants upon closing, entitling the Agent to
subscribe for Units equal to 6% of the total number of Units issued
under the proposed offering.

The closing of the proposed private placement is expected to take place
on or about March 16, 2005, or at a later date agreed to by the parties
and is conditional upon the receipt of all necessary approvals,
including that of the TSX Venture Exchange, and the satisfaction of
other customary conditions.

About Syscan

Syscan is an Applications Solutions Provider of RFID based business
efficiency and risk management solutions for a variety of vertical
markets. Its standardized supply chain solutions include traceability,
temperature monitoring and quality control methodologies for the food,
pharmaceutical and health care sectors, transportation and automobile
production.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Syscan International Inc.
    Darrell Munro BBA. LL.B
    (613) 762-4262
    (514) 521-0949 (FAX)
    dmunro@syscan.com
    or
    Syscan International Inc.
    Customer information
    1-888-479-7226
    info@syscan.com
    www.syscan.com
    or
    Renmark Financial Communications Inc.
    Investor Relations
    Barry Mire
    (514) 939-3989
    (514) 939-3717 (FAX)
    bmire@renmarkfinancial.com
    or
    Renmark Financial Communications Inc.
    Investor Relations
    Sylvain Laberge
    (514) 939-3989
    (514) 939-3717 (FAX)
    slaberge@renmarkfinancial.com
    www.renmarkfinancial.com
    "The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release."