SOURCE: Viscount Systems Inc.

August 15, 2005 09:00 ET

Viscount Q2 Results, Sales and Profits Increase, MESH Sales Up 368%

BURNABY, BC -- (MARKET WIRE) -- August 15, 2005 -- Viscount Systems (OTC BB: VSYS) today announced financial results for its second quarter ended June 30, 2005. Highlights included:

--  Sales for the quarter ended June 30, 2005 were $1,180,205 an increase
    of  15% when expressed in U.S. Dollars or 14% when expressed in Canadian,
    compared to the quarter ended June 30, 2004.
    
--  Sales for the six months ended June 30, 2005 were $2,503,950, an
    increase of 19.2% when expressed in U.S. Dollars or 14.4% when expressed in
    Canadian Dollars, compared to the six months ended June 30, 2004.
    
--  Sales of MESH continue to increase and accounted for 20% of all
    revenue
    
--  Gross Profit for the Quarter increased by  9% when expressed in US
    Dollars or  8% when expressed in Canadian for the quarter ended June 30,
    2005, as compared to the quarter ended June 30, 2004.
    
--  SG and A expenses decreased by 7.2% when expressed in US Dollars or
    10.9% when expressed in Canadian for the six months ended June 30, 2005, as
    compared to the six months ended June 30, 2004.
    
"MESH sales are now making an impact but these are mostly shipments of early specified projects," Steve Pineau, Viscount President and CEO commented.

"The increase in MESH quotes and bookings for new projects is far outstripping our current sales increase. MESH is an approach that has taken the market time to digest but with the increasing focus on IT convergence MESH is more powerful than traditional controller technology. The trend we are seeing is that in regions where MESH systems have been installed and integrators are booking additional projects other integrators who expressed little interest are now entering our certification program, in some cases because some feel they will be forced to sell MESH simply to compete. This puts us in a very good position."

About Viscount Systems

Viscount Systems Inc. is a designer and manufacturer of telecommunications and electronic door control access systems for the security industry. From 1969-1997 Viscount was an R&D affiliate of Telus, itself a controlled subsidiary of GTE, now Verizon Communications. The company's diverse line of products are designed to improve safety and manage security for property owners and users. Viscount's products have been installed in approximately 35,000 sites in over 30 countries and are sold through a 500-member, North America-wide dealer network comprised of security equipment vendors. Additional information on Viscount's products may be obtained on-line at http://www.viscount.com.

Financial statements are available from the company's registration statement filed with the U.S. Securities and Exchange Commission on February 6, 2002, which may be viewed at www.sec.gov or the company's web site www.viscount.com under the heading "Investor Relations." For further information, or to be placed on email NEWS ALERT, please e-mail to ir@viscount.com or call toll free 1-866-252-9446.

Safe Harbor Statement

This press release does not constitute an offer to sell or the solicitation of any offer to buy any securities of Viscount Systems Inc., nor shall there be any sale of any such security in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

Forward-looking statements: This press release and other statements by Viscount Systems Inc. may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "estimate," "position," "assume," "potential," "outlook," "continue," "remain," "maintain," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," or similar expressions.

Contact Information

  • For more information, contact:
    Nick Waddell
    Vice President, Corporate Communications
    Viscount Systems, Inc.
    Investor Relations
    Toll Free 1-866-252-9446
    Email Contact