FOX-TEK SIGNS LETTER OF INTENT WITH ZAMIL GROUP HOLDING COMPANY FOR 20 PINPOINT SYSTEMS

TSX Venture Exchange symbol: FOX

TORONTO, Jan. 25 /CNW/ - Fiber Optic Systems Technology, Inc. ("FOX-TEK" of the "Corporation"), (TSX-V: FOX), a developer and manufacturer of patented non-intrusive sensing systems, is pleased to announce that it has signed a letter of intent (the "LOI") with Zamil Group Holding Company ("Zamil").

Under the terms of the LOI, the Corporation will build up to 20 PinPoint systems for Zamil for sale in Saudi Arabia. The delivery of the systems are conditional on Zamil obtaining export credit financing (the "EDC Financing") and Zamil securing clients to contracts of 2 to 3 years for the data tracking services.

At a cost of $75,000, the potential sale of the twenty PinPoint systems will represent gross sales of approximately $1.5 million. It is anticipated that approval of EDC Financing will take approximately 90 to 120 days from the date that the application is submitted for approval.

Mr. Allen Lone, President of the Corporation, stated "We are excited about entering into an agreement with a company such as Zamil. The execution of the LOI is a direct result of the Corporation's commitment, understanding and vision for the Middle Eastern market and the various industries that comprise such market. The agreement with Zamil will not only contribute to the Corporation's bottom line but it will showcase the Corporation's products in the Saudi Arabian market as well as in the Middle East, markets that the Corporation has always viewed as essential for the continued success and growth of the Corporation. This agreement will act as a template for similar agreements in the Middle East and elsewhere. We look forward to having a very successful relationship with Zamil and to expanding our presence and opportunities in the Middle East."

About Zamil Group Holding Company

Zamil is a global holding company with diverse interests and capabilities. It provides innovative, high quality and price competitive products and services as well as investment opportunities for investors, partners and stakeholders in the industrial, petrochemicals and services sectors.

Zamil's range of products and services is expansive and spans air-conditioning manufacturing to architectural glass processing, plastics to steel fabrication and paints and cranes to heavy process equipment. It is also engaged in shipbuilding and repair, port operations and maintenance, petrochemicals and chemicals, industrial investment and general construction.

About Marcon, FOX-TEK:

Marcon is an Ontario based, industrial supply contractor servicing the energy sector and a number of US Government entities.  Marcon's principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co. 

FOX-TEK develops 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, strain due to bending/buckling, and process pressure and temperature.  FOX-TEK's FT fiber optic sensor and PinPoint systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.  

Marcon, FOX-TEK have offices in Oakville, ON; Toronto, ON and Alberta; FOX-TEK is traded on the TSX Venture Exchange under the symbol "FOX". For more information, visit www.fox-tek.com.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. 

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. 

SOURCE FIBER OPTIC SYSTEMS TECHNOLOGY, INC. (FOX-TEK)

For further information:

Allen Lone, President & CEO, Fiber Optic Systems Technology, Inc.
Tel: (905) 338 -2323 Ext 22, email: atlone@fox-tek.com

Profil de l'entreprise

FIBER OPTIC SYSTEMS TECHNOLOGY, INC. (FOX-TEK)

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