Active Control establishes beach-head in China

    MOU with leading Chinese coal group provides entry to China's coal mine
    communications and tracking equipment market

    TSX-V: ACT

    TORONTO, March 6 /CNW/ - Active Control Technology Inc. (TSX-V:ACT)
announced today that it has signed a memorandum of understanding ('MOU') with
a major coal mining group in China, establishing a beach-head for entry into
the country's coal mining communications and tracking equipment market. Active
Control estimates the mine communications and tracking market at $3 billion in
    Under the MOU, Active Control will form an exclusive joint venture
partnership with the Chinese group to market and sell ActiveMine(TM), the
company's two-way wireless voice communications, tracking and data system. A
formal agreement is to be negotiated within 90 days.
    The new venture will target China's 2,500 large coal mines and over
20,000 smaller, privately-owned mines.
    "China's massive underground coal mining sector represents the largest
market opportunity in the world for our company," said Steve Barrett,
President and CEO, Active Control. "By working in partnership with a large and
long-established mining group, we are well-positioned to gain the full
potential of this opportunity."
    The joint venture will establish a local management team in China, and
will leverage best practices pioneered by ACT in its US ActiveMine business.
    ACT will fund and install a demonstration site as both a sales tool and
for government review and certification. Equipment used at the site will be
purchased by the Chinese partner at the conclusion of the demonstration. The
Chinese group will assist ACT in its application to have ActiveMine certified
as intrinsically safe by China's mine safety board.
    The joint venture relationship was facilitated by Peiwei Ni, the newest
member of ACT's board of directors. Mr. Ni, a native of Beijing, is
bilingual/bi-cultural and has strong links to business and government in China
including key relationships in China's coal industry and Ministry of Commerce.
    "The joint venture demonstrates the value that Mr. Ni provides Active
Control through his knowledge of China's coal mining sector and its key
players," Barrett said. "This gives our company a huge advantage at a time
when China is moving rapidly to improve safety in its coal mines."
    China, which has by far the largest number of coal mines in the world,
has launched aggressive programs to improve coal mine safety. In 2005, the
Chinese State Administration of Work Safety mandated US$6.3 billion in
spending to enhance safety at all state-owned mines, and the government has
extended regulations and enforcement to more coal mining operations.

    About ActiveMine

    ActiveMine's communications, data and tracking system enables monitoring
of production, personnel and equipment in all types of surface and underground
mining environments, including coal and base metal mines. The system is
designed to:

    -   Operate on a 100 percent wireless Wi-Fi network backbone.

    -   Be less susceptible to water and mechanical damage of all sorts,
        including rock fall.

    -   Use open-standards technology.

    -   Comply with relevant U.S. state and federal regulations, including
        MINER Act requirements for wireless systems as established in MSHA

    -   Provide four-day intrinsically safe battery back-up and power supply.

    -   Provide a wireless communications and data network above-ground to
        extend underground networks.

    About Active Control Technology

    ACT designs and markets wireless network control and communication systems
for buildings and extreme environments. Located in Burlington, Ontario,
Canada, the company trades publicly on the TSX Venture Exchange under the
symbol ACT. For more information, visit the company's website at

                         We make wireless work.(TM)

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

    Cautionary Note Regarding Forward-Looking Statements: This press release
contains forward-looking statements that involve risks and uncertainties,
which may cause actual results to differ materially from the statements made.
When used in this document, the words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "estimate", "expect" and similar
expressions are intended to identify forward-looking statements. Such
statements reflect our current views with respect to future events and are
subject to such risks and uncertainties. Many factors could cause our actual
results to differ materially from the statements made, including those factors
discussed in filings made by us with the Canadian securities regulatory
authorities. Should one or more of these risks and uncertainties, such as
changes in demand for and prices for the products of the Company or the
materials required to produce those products, labour relations problems,
currency and interest rate fluctuations, increased competition and general
economic and market factors, occur or should assumptions underlying the
forward looking statements prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated, or expected. We
do not intend and do not assume any obligation to update these forward-looking
statements. The reader is cautioned not to put undue reliance on such
forward-looking statements.

    %SEDAR: 00007946E

For further information:

For further information: Steve Barrett, President & C.E.O., Active
Control Technology Inc., Tel.: (905) 670-5500 ext. 202, Fax: (905) 592-9691,
Email:, Website:; Don
Hogarth, Hogarth Communications Inc., Tel.: (416) 565-8920, Email:

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