ZTEST Electronics Inc.
TSX VENTURE : ZTE

ZTEST Electronics Inc.

May 19, 2011 16:22 ET

ZTEST Signs Guarantee Agreement

NORTH YORK, ONTARIO--(Marketwire - May 19, 2011) - ZTEST Electronics Inc. ("ZTEST" or the "Corporation") (TSX VENTURE:ZTE) wishes to announce that it has entered into a guarantee agreement ("Guarantee Agreement") with an individual (the "Guarantor") and the Corporation's wholly- owned subsidiary Permatech Electronics Corp. ("Permatech") in order for Permatech to obtain a line of credit ("Line of Credit") from a financial institution. As partial consideration for guaranteeing the Line of Credit (the "Guarantee"), ZTEST has agreed to grant to the Guarantor 500,000 bonus warrants (the "Bonus Warrants"). The Bonus Warrants entitle the Guarantor to acquire one (1) common share of ZTEST at a price of $0.135 per share until the date which is the lesser of (i) two (2) years from May 18, 2011 and (ii) the term that the Guarantee under the Line of Credit Agreement remains an obligation of the Guarantor and the Line of Credit remains outstanding subject to certain claw-back provisions imposed by the policies of the TSX Venture Exchange. The securities will be legended and restricted from trading until September 19, 2011.

About ZTEST Electronics Inc.

ZTEST Electronics Inc., through its wholly-owned subsidiary Permatech, offers Electronic Manufacturing Services (EMS) to a wide range of customers. Permatech's offering includes Materials Management, Printed Circuit Board (PCB) Assembly, Testing and Design services. Permatech operates from a 20,000 square foot, ISO 9001:2008 certified 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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