April 03, 2007 08:00 ET

Syscan to Acquire Australian RFID Group

MONTREAL, CANADA--(CCNMatthews - April 3, 2007) - Syscan International Inc. ("Syscan")(TSX:SYA) is pleased to announce that it has signed a Letter of Agreement to acquire three arm's length RFID companies in Australia known collectively as the "Austin Group".

The companies to be acquired include:

(a) Fastcards Pty Ltd, a patented secure online issuer of Photo RFID cards holding Issuing Body status for the Australian Maritime Security Identification Card, contactless smart card supply and managed identification services;

(b) Sunshine Technologies Pty Ltd, an award-winning and leading RFID solutions provider in Australia with a focus on mining, government, defence and general inventory and asset management applications; and

(c) id-DNA Pty Ltd, a visionary start-up Bio-security company with a portfolio of intellectual property and knowledge focused on RFID combined with DNA applications in the food industry, identification and forensic chain of custody applications.

The combined revenues of these companies for fiscal 2006 were approximately Cdn$1.3 million. Syscan expects the group to make a positive cash flow and earnings contribution to its overall operations.

Mr. Axel Striefler, President and CEO of Syscan stated: "This acquisition is a significant first step in the execution of our merger and acquisitions strategy as part of the overall Syscan growth plan. Based on its core RFID technology competence, Syscan intends to expand its primary areas of expertise and regional distribution though both organic development and acquisitions.

This transaction in particular will provide us with an ideal position in the Australian market and brings us closer to our vision for global RFID leadership. Fastcards will enable us to take advantage of its growth opportunities and to export its security and access control expertise and IP into other markets. Sunshine Technologies offers strengths of expertise and integration capabilities needed to build the RFID market while id-DNA's pioneering technology could be very exciting in the food security and other markets."

The three companies operate closely and were founded or co-founded by Mr. Scott Austin, who will join the Syscan management team while continuing to lead the Australian operations. Austin has an eight year background in RFID, Automatic Data Capture and smart cards. In the four years that Austin and his team have been together, they have become leaders of RFID in the Australian market.

Mr. Scott Austin stated: "We've known and worked with Syscan for many years and this union is a natural step for companies offering mutual benefits. The acquisition will enable consolidation of my entities under the one roof with a common focus. Many of our clients are globally based and as such, we see a need to support them and the deployment of our RFID solutions globally."

The shareholders of the Austin Group will receive approximately 2.9 million shares of Syscan valued at $0.23 per share and a cash payout of approximately Cdn$280,000 for their holdings. The transaction also provides for future earn-out incentives of up to Cdn$470,000 in Syscan shares conditional on the attainment of certain growth projections over the following two years. The issue price of these shares will be the greater of $0.23 per share and the market price at that time.

The closing of this acquisition is subject to due diligence by Syscan, execution of definitive agreements, approval by the Syscan Board of Directors, normal Australian government regulatory requirements and other customary conditions.

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

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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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