ZTEST Electronics Inc.

ZTEST Electronics Inc.

March 23, 2005 13:21 ET

ZTEST Announces Equipment Financing Facility




MARCH 23, 2005 - 13:21 ET

ZTEST Announces Equipment Financing Facility

NORTH YORK, ONTARIO--(CCNMatthews - March 23, 2005) - ZTEST Electronics
Inc. ("ZTEST" or the "Corporation") (TSX VENTURE:ZTE) wishes to advise
that its wholly owned subsidiary, Permatech Electronics Corporation
("Permatech") is arranging a credit facility of up to $2,400,000 with an
arm's length party. The credit facility will be used to finance future
equipment purchases, as required, to expand the business of Permatech.
Permatech will be able to finance 88% of the purchase price of each
piece of equipment acquired. The advances under the facility will bear
interest at the rate of 9.50% per annum and will be repayable over 48
months secured against the machinery purchased. Permatech will be able
to draw down $600,000 in the first 30 days after closing, and up to
$260,000 in each additional 90-day period as required. Subject to
certain conditions, the lender will agree to larger quarterly drawdowns,
if warranted. In conjunction with this arrangement, ZTEST has agreed to
issue to the lender up to a maximum of 4,000,000 warrants of ZTEST, to
be priced at the prevailing market prices at the time of each drawn down
on the facility.

The Company also wishes to advise that it is offering up to $135,000 in
unsecured convertible debentures (the "Debentures") bearing interest at
the rate of 9.50% per annum for 2 years. The Debentures shall be
convertible into units at the rate of one (1) unit for each $0.18 of
Debenture converted with each unit consisting of one (1) common share
and one share purchase warrant entitling the holder to acquire a further
common share at a price of $0.18 per share for a period of two years.
ZTEST shall pay a 6% finder's fee in respect of this transaction.

Furthermore, the Company wishes to advise that it is arranging a new
$350,000 line of credit (the "Line") with an arm's length party bearing
interest at the rate of 9.50% per annum for 3 years. The Line will
require interest only payments during its term and will be open for
repayment at any time. ZTEST shall pay a 6% finder's fee in respect of
this transaction.

These transactions are subject to the approval of the TSX Venture

"ZTEST is very pleased with this new credit facility. When the expansion
program is completed, it will more than double the present capacity of
our North York plant. The ability to accelerate this program is
especially attractive, given Permatech's revenue increase of over 80%
for the two most recently concluded fiscal quarters versus the same
periods last fiscal year" said Mr. Drzazga, CEO of ZTEST.

"With this capital expenditure program we will be able to continue
servicing our existing customers who have experienced a surge in sales
over the past year and still require quick delivery. Some of the new
equipment will also expand our capabilities to enable us to quote
customers that we are currently unable to service" added Mr. Perreault,
President of Permatech. "In addition, Permatech will be ready to meet
the European directives WEEE and RoHS which deal with eliminating lead
from all electronic products. This will come into effect in 2006 and
will affect our customers dealing with Europe and Japan. North America
is scheduled to follow in 2007" he concluded.

About Permatech Electronics Corp.

Permatech Electronics Corp., a wholly owned subsidiary of ZTEST
Electronics Inc. (TSXVE - "ZTE"), is an ISO 9001:2000 certified
Electronic Manufacturing Services (EMS) provider. Permatech's offering
includes Materials Management, Printed Circuit Board (PCB) Assembly,
Testing and Design services. Permatech operates from a 20,000 square
foot facility in North York, Ontario, Canada. The company serves
customers in the Medical, Power, Computer, Telecommunication, Wireless,
Industrial and Consumer Electronics markets requiring high quality,
quick-turn, small and medium size production runs.


Contact Information

    ZTEST Electronics Inc.
    Ted Drzazga
    (416) 297-5155
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.