Delta Systems, Inc. Announces the Secured Borrowing of C$1.25 Million



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    ROGERS, ARKANSAS, Aug. 30 /CNW/ - Delta Systems, Inc. ("Delta Systems" or
the "Company") (TSX-V: DLT), a leading developer of factory automation
solutions for the consumer packaged goods industry, today announced that it
has closed two loan transactions pursuant to which it has borrowed an
aggregate of C$1,250,000 on a secured basis from Gerald Hurlow and two other
unrelated parties (each, a "Lender") and has issued therefore a promissory
note to Mr. Hurlow in the principal amount of C$650,000, and promissory notes
to the unrelated parties in the principal amounts of C$400,000 and C$200,000
respectively (collectively, the "Promissory Notes"), such Promissory Notes
bearing interest at a rate of 11% per annum and repayable 30 days after
demand.
    As general and continuing security for the performance of the Company's
obligations under the Promissory Notes, the Company has entered a general
security agreement in favour of each Lender granting a security interest in
all the present and future undertaking and property of the Company. In
addition, the Company's subsidiaries, Delta Systems, Inc. (a corporation
organized under the laws of the State of Arkansas), Delta Controls, Inc. and
Delta Automation Solutions, Inc. have each entered into a guarantee and
general security agreement in favour of each Lender. The borrowing from Mr.
Hurlow follows the repayment by the Company of certain unsecured loans that
had been previously advanced by Mr. Hurlow to the Company, the proceeds of
such repayment having been loaned back to the Company on a secured basis as
described herein.
    Pursuant to Ontario Securities Commission Rule 61-501 ("Rule 61-501"),
this transaction may be classified as a "related party transaction" since Mr.
Hurlow is a director and officer of the Company. The Company has determined
that exemptions from certain requirements of Rule 61-501 are available. Given
the existence of these exemptions and the fact that the final terms of the
transaction were settled shortly before closing, the transaction closed prior
to the filing of the material change report required by Rule 61-501.

    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 is headquartered in Rogers,
Arkansas, and has installations with more than 100 customers in North America
and internationally, including 11 Fortune 500 companies. For more information,
please visit: www.delta-systems-inc.com.

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

    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, (416) 815-0700 ext. 272,
gwilliams@equicomgroup.com

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DELTA SYSTEMS, INC.

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