FOX-TEK announces first quarter results

TSX Venture Exchange symbol: FOX

TORONTO, May 31 /CNW/ - Fiber Optic Systems Technology, Inc. ("FOX-TEK"), (TSX-V: FOX), a developer of patented non-intrusive sensing systems, today announced financial and operating results for the period ended March 31, 2010. The quarterly statements have been filed on SEDAR ( All amounts are expressed in Canadian dollars unless otherwise noted.

    Q1 2010 Developments:

    -  Revenue totaled $121,000.
    -  Fiber Optic System Technology (Canada) Inc, ("FOX-TEK Canada"), a
       wholly owned subsidiary of FOX-TEK, filed for bankruptcy on March 29,
    -  Operating expenses decreased by $106,000, comparing Q1-2010 to
    -  Cash on hand was $29,000 at March 31, 2010.

    Among the financial results for the period ended March 31, 2009, FOX-TEK
reported revenue of $121,000 compared to $277,000 in 2009. The net loss for
the first quarter of 2010 was $580,000 or $.01 per share, compared to a net
loss of $606,000, or $.01 per share in the first quarter of 2009.
    As part of the bankruptcy proceedings, FOX-TEK Canada, held a meeting for
all of its suppliers on April 19, 2010 and tendered its assets on May 11,
2010. No tender bids were received by FOX-TEK, so the assets of FOX-TEK Canada
will divert to FOX-TEK in satisfaction of its secured intercompany loan
agreement. The trustee of FOX-TEK Canada expects these proceeding will be
finalized by the end of June 2010.

    Subsequent events:

    -  FOX-TEK signed a non-binding letter of intent with Marcon
       International Inc. on April 6, 2010.
    -  On May 7, 2010 FOX-TEK announced the successful closing of its non-
       brokered private placement.
    -  Material orders received, totaling $520,000 for 9 PinPoint systems.

For greater details of these events please referred to the most recent Financial Statements and the Management Discussion and Analysis now available on SEDAR (

About FOX-TEK:

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.

FOX-TEK has its headquarters in Toronto, ON, and is traded on the TSX Venture Exchange under the symbol "FOX". For more information, visit

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.

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

%SEDAR: 00020673E


For further information: For further information: FOX-TEK Company contact: Sean Carr, President & CFO, Fiber Optic Systems Technology, Inc., (416) 665-2288,

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