Tranzcom China Security Networks Inc.
TSX VENTURE : TSN

Tranzcom China Security Networks Inc.

June 03, 2005 10:43 ET

Tranzcom Granted Exclusive Distribution Rights in China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 3, 2005) - Tranzcom China Security Networks Inc., (TSX VENTURE:TSN), (the "Company" or Tranzcom") is pleased to announce that its new Homeland Security Division has been granted exclusive Chinese distribution rights to the full line of Night Vision Products manufactured by General Starlight Co., Ltd ("GSCI") of Ontario, Canada. The agreement with GSCI provides for Tranzcom to meet certain minimum sales quantities in the territory and obligates GSCI to provide certain training, technical and warranty support to Tranzcom.

Tranzcom's entry into the Homeland Security market comes at the request of many Chinese government agencies calling on Tranzcom to provide enhanced security products in order for China to meet its cooperation commitments with the international community in anti-terrorism activities. China is a founding member of the 6 nation Asian anti terrorist group called the "Shanghai Cooperation Organization". China also takes an active role in the fight against terrorism through the UN. The total Chinese military budget is currently estimated to be US$78 Billion per year or about 2.8% of GDP. Estimates of military spending of US$197 Billion (5% of GDP) by the year 2025 make entry into this growing market a timely move for Tranzcom.

Tranzcom management has been developing distributor and agent relations with significant suppliers in the anti-terrorism and Homeland Security markets, and is actively looking to enhance the product lines in this division to encompass drug and bomb screening devises and other detection equipment suitable for large event use, such as the forthcoming Beijing Olympics.

Tranzcom Chairman, Ken Z. Cai commented, "The dramatic increases in Chinese GDP have left the government in a financial position to acquire the latest available technology in the fight against terrorism and smuggling. Our close ties in the Chinese security community and our reputation as an industry leader in the security field, have positioned us well to supply this growing market segment. Currently, supply can not keep up with the demand of Night Vision products, so this exploding market looks very strong for the near term."

GSCI President, Simon Chender commented, "Demand for Night Vision products worldwide is at an all time high, and we look forward to utilizing Tranzcom's distribution network to meet the demand in the Chinese market. Tranzcom's presence in China provides local marketing and client care support, allowing us to concentrate on meeting our world-class production standards."

About General Starlight Co., Inc.

General Starlight Co., Inc. has been manufacturing a wide range night vision optical-electronic devices for government, law enforcement agencies and private citizens worldwide since 1992. GSCI offers a complete line of night vision scopes, goggles, binoculars, thermal detecting equipment, laser rangefinders and accessories. GSCI is a NATO and DND sanctioned supplier.

About Tranzcom

Tranzcom China Security Networks Inc. is a Vancouver based Canadian company, trading on the TSX Venture Exchange (TSX VENTURE:TSN). Tranzcom is a leading Security Network Service Provider in China, and operating a state of the art security dispatch centre in Beijing. Tranzcom's subsidiaries, Beijing Tranzcom Technology Co. and Beijing Huaxun Datacom Co. Ltd. design and manufacture security products and provide Integrated Security Service Solutions throughout China.

ON BEHALF OF THE BOARD

Barry McGowan, Vice President, Corporate Development

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.

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