Delta Systems Provides Corporate Development Update



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    ANY MEANS INTO THE UNITED STATES./

    ROGERS, AR, June 7 /CNW/ - Delta Systems, Inc. (TSX-V: DLT), a leading
developer of factory automation solutions for the consumer packaged goods
industry, today provided an update on its corporate development activities.
Delta Systems is currently working with two multinational customers on
long-term custom projects that have the potential to generate a revenue stream
from multiple orders over a number of years that would be incremental to sales
derived from its traditional quote flow business. The two custom systems that
are currently being developed by Delta Systems involve: a product tracking
system; and, an innovative wrapping system for a new product. The Company also
provided an update on its integration of Food Machinery Sales Inc. ("FMS") and
other potential strategic business partnerships.

    Custom Projects

    During 2004 and 2005, Delta Systems generated significant revenues (over
US$10 million in aggregate) deploying more than 100 product tracking systems
for a Fortune 100 food company as part of a larger project. This customer put
completion of the project on hold in 2005 in order to evaluate system
performance and amend the design of components not related to Delta's systems.
The customer has now communicated its intention to restart deployment of
tracking systems by early 2008. During the hiatus period, Delta Systems was
asked to review the product design with a view to improving functionality and
reducing costs. Delta has since completed certain modifications to meet the
customer's requirements and has shipped a new prototype system to the customer
for further evaluation in a production environment. The customer is also
evaluating other tracking systems for this project and there can be no
guarantee that Delta Systems will be selected as a supplier for the customer's
redeployment of product tracking systems.
    Delta currently provides horizontal flow wrapping machines to a leading
global confectionary products company. In early 2007, this customer asked
Delta to develop a custom innovative wrapping system for a major new product
launch planned for the latter part of 2007. This customer funded the
engineering required to execute proof-of-concept work which was successfully
completed in April, 2007. Delta expects to receive an order in the second half
of the year for one or more prototype systems.
    Delta Systems recently announced revenue guidance for 2007 in the range
of US$23 to US$25 million. If achieved, this would represent growth of
approximately 20 to 30 percent versus 2006. Winning a multi-order deployment
from one or both of these aforementioned customer initiatives would provide
Delta Systems with a significant new revenue stream in 2008 and beyond.

    Strategic Business Partnerships

    In June 2006, Delta acquired Food Machinery Sales Inc. ("FMS") of Athens,
Georgia. FMS revenues in the last fiscal year prior to its sale were
approximately US$5.0 million. Delta has been installing its engineering
disciplines and business processes at FMS during the past year and expects
project order growth from this business starting in the latter half of 2007.
Project quotes for FMS products have grown during the first half of 2007 and
currently account for approximately 40 percent of all quotes outstanding.
    Delta Systems will continue to evaluate opportunities to enhance its
product line, customer base and geographic market opportunities through
acquisitions or other business combinations. The Company has been approached
recently by potential strategic business partners to review joint
opportunities. Going forward, Delta intends to pursue discussions that
management believes can lead to enhanced shareholder value. There can be no
assurance that any transactions or joint opportunities will develop from these
discussions.

    About Delta Systems

    Delta Systems, Inc. (TSX-V: DLT) develops factory automation solutions
for consumer packaged goods companies. The Company's comprehensive line of
automation equipment includes: high-speed flow wrappers, feeding and
distribution, and labeling and product tracking systems. Delta Systems'
PC-based motion control software, SoftFlow(TM), enhances the speed,
efficiency, precision and flexibility of automation applications on the plant
floor, while providing connectivity to other enterprise systems. The Company
offers a range of customer support services to optimize deployment,
utilization and systems integration. Delta Systems has installations with more
than 100 customers in North America and internationally, including 11 Fortune
500 companies. The Company is headquartered in Rogers, Arkansas, and has
approximately 100 employees at product development and customer support
facilities in both Arkansas and Georgia. For more information, please visit:
www.delta-systems-inc.com.

    
        The TSX Exchange has neither approved nor disapproved of the
                 information contained in this news release.

               Not for distribution to U.S. newswire services.
    

    Caution concerning forward-looking statements

    Certain statements contained in this news release may constitute "forward
looking statements". When used in this news release, the words "may," "would,"
"could," "will," "intend," "plan," "anticipate," "believe," "estimate,"
"expect," and similar expressions, as they relate to Delta Systems or its
management are intended to identify forward-looking statements. Such
statements reflect Delta Systems' current views with respect to future events
and are subject to certain risks, uncertainties and assumptions. Many factors
could cause the Company's actual results, performance or achievements to be
materially different from any future results, performance or achievements that
may be expressed or implied by such forward looking statements, including
among other things, those which are discussed under the headings "Risk
Factors" and elsewhere in documents that Delta Systems files from time to time
with securities regulatory authorities. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated, believed,
estimated or expected. Delta Systems does not intend, and does not assume any
obligation, to update these forward-looking statements.

    %SEDAR: 00022918E




For further information:

For further information: Jake Bushey, President and Chief Executive
Officer, Delta Systems, Inc., (479) 619-2585, jbushey@delta-systems-inc.com;
Glen Williams, Investor Relations, The Equicom Group Inc., (416) 815-0700 ext.
272, gwilliams@equicomgroup.com

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DELTA SYSTEMS, INC.

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