January 31, 2006 08:00 ET

Syscan to Finance Growth with $2.5 Million Private Placement

MONTREAL, QUEBEC--(CCNMatthews - Jan. 31, 2006) - Syscan International Inc. (TSX VENTURE:SYA) today announced that, subject to regulatory consent, it has entered into a Letter of Agreement with Dominick & Dominick Securities Inc. (the Agent) whereby the Agent has agreed to sell, on a best efforts basis by way of private placement, approximately 8,333,333 units of Syscan at a price of $0.30 per unit for gross proceeds of $2,500,000. The net proceeds of this placement will be used for working capital.

Axel Striefler, President of Syscan, said "Following our recent announcements of January 18, 2006 (SYSCAN ANNOUNCES RFID TECHNOLOGY BREAKTHROUGH) and January 23, 2006 (Syscan Delivers First Commercial Order of New Anti-Collision RFID System for Health Sciences) we are now poised to drive commercialisation and execute our aggressive growth plan. The Private Placement for $2.5M will enable us to exploit our technological lead and accelerate penetration of both targeted vertical markets, namely: Food and Pharmaceuticals."

Each 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 Syscan at a price of $ 0.45 per share for a period of twelve months after issuance. The Units issued under this placement are subject to a four-month hold period.

Dominick & Dominick 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 Company will pay to the Agent a commission of 7% of the gross proceeds of the offering and issue brokers' warrants upon closing, entitling the Agent to subscribe for Units equal to 10% of the total number of Units issued under the offering at an exercise price of $0.35 for a period of twelve months.

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 methodologies for the food, pharmaceutical and healthcare 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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