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
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
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
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: firstname.lastname@example.org