FOX-TEK ANNOUNCES CLOSING OF REVERSE TAKEOVER WITH MARCON INTERNATIONAL INC.

TSX Venture Exchange symbol: FOX

TORONTO, Sept. 27 /CNW/ - Fiber Optic Systems Technology, Inc. ("FOX-TEK"), (TSX-V: FOX), a developer and manufacturer of patented non-intrusive sensing systems, is pleased to announce that it has closed its acquisition of all of the issued and outstanding securities of Marcon International Inc. ("Marcon") as previously announced in its press releases dated April 8, 2010, May 19, 2010, August 4, 2010, August 13, 2010 and August 27, 2010 (the "Acquisition").

The Acquisition, which was approved by a majority of FOX-TEK's shareholders by way of written consent, also encompassed the following items, which are fully described in FOX-TEK's filing statement dated August 27, 2010:

    
    1.  Mr. Allen Lone, Mr. Jay Vieira, Mr. Steve Ewaskiw and Mr. Tony
        Boogmans were appointed to the board of directors upon the
        resignations of Dr. Bob Schulz, Mr. David Horsley and Mr. Sean Carr.
        "I would like to personally thank Dr. Bob Schulz and Mr. David
        Horsley for their valuable contributions since being appointed to the
        Board of Directors of FOX-TEK in January 2007 and 2006 respectively.
        Their commitment to the shareholders during this difficult period of
        time was truly commendable" said Mr. Sean Carr, CFO of FOX-TEK.
    2.  The closing of the equity financing of $1.4M. (the "Financing") of
        units of FOX-TEK at a price of $0.06 per unit. A unit consisted of
        one share and one warrant. Each warrant entitles the holder to
        acquire one common share at an exercise price of $0.15 for 2 years
        and increased to $0.20 in the third year. The warrants expire on
        September 23, 2013. The shares and warrants are subject to a
        statutory hold period of four months.
    

Allen Lone, the President and CEO of FOX-TEK, stated "We are pleased that the majority of the FOX-TEK shareholders supported the RTO. We believe this RTO enables FOX-TEK to expand its products into the well established distribution channels developed by Marcon since 1991.

The Acquisition is still subject to the final approval of the TSX Venture Exchange. FOX-TEK anticipates filing final documentation with the TSX Venture in the next day or so.

About Marcon, FOX-TEK:

Marcon is a privately-owned, 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.

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.

Investors are cautioned that, except as disclosed in the Filing statement currently posted on SEDAR and prepared in connection with the transaction, any information released or received with respect to the RTO may not be accurate or complete and should not be relied upon. Trading in the securities of FOX-TEK should be considered highly speculative.

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.

%SEDAR: 00020673E

For further information: FOX-TEK contact: Allen Lone, President & CEO, Fiber Optic Systems Technology, Inc., Tel: [phone] Ext 22, email: [email protected]