Major Pipeline Company Orders Third FT System to Monitor Possible Strain

    FT System Readily Measures Effects from Any Ground Movement on Replaced
    Section

    TSX Venture Exchange symbol: FOX

    TORONTO, Dec. 16 /CNW Telbec/ - Fiber Optic Systems Technology, Inc.
("FOX-TEK"), (TSX-V: FOX), a developer and manufacturer of patented
non-intrusive sensing systems, today announced the sale and installation of a
third pipeline strain remote monitoring system to an existing client.
    The client plans to use the FT3410 periodic monitoring system, during
site visits to a recently replaced section of a large diameter pipeline, to
take measurements of pipe strain that indicate possible ground movement.
    Mr. Sean Carr, FOX-TEK Interim President and CFO, said "The FT fiber
optic sensors and cabling were installed on a pipeline in a remote area. This
section of the pipeline has some history of damage from earlier soil movement.
Data processed by FOX-TEK after each client visit allows the company to verify
promptly that the soil in the excavated area is stable. Our client is pleased
with the two FT systems in service in other locations, and will rely on this
FT system to remain proactive and maintain their strong reputation of safe
operations."

    About FOX-TEK:

    Fiber Optic Systems Technology, Inc. "FOX-TEK" develops and sells
non-intrusive asset health monitoring sensor systems for the oil and gas
market to help operators: track the thinning of pipelines and refinery vessels
due to corrosion/erosion, monitor strain due to bending/buckling or soil
movement, check for leaks, and prevent unauthorized access.
    FOX-TEK has offices in Toronto, ON; Calgary, AB; and Al-Khobar, Saudi
Arabia. FOX-TEK is traded on the TSX Venture Exchange under the symbol "FOX".
For more information, visit www.fox-tek.com.

    This press release contains forward-looking statements based on
assumptions, uncertainties and management's best estimates of future events.
Actual results may differ materially from those currently anticipated.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties. Important factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements
are detailed from time to time in FOX-TEK's periodic reports filed with the
Ontario Securities Commission and other regulatory authorities. FOX-TEK has no
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

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

For further information: FOX-TEK Company: Mr. Sean Carr, Interim
President and CFO, Fiber Optic Systems Technology, Inc., (416) 665-2288,
scarr@fox-tek.com; Investor Relations: Renmark Financial Communications Inc.:
Barry Mire: bmire@renmarkfinancial.com; Christine Stewart:
cstewart@renmarkfinancial.com, Montreal: (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com; Toronto: (416) 644-2020, Fax: (416) 644-2021