Major Oil and Gas Company Installs FT System for Pipeline at River Crossing

    Fiber Optic Sensors Used to Monitor Sour Gas Pipeline for Effects of
    Ground Movement

    TSX Venture Exchange symbol: FOX

    TORONTO, Jan. 21 /CNW Telbec/ - Fiber Optic Systems Technology, Inc.
("FOX- TEK"), (TSX-V: FOX), a developer and manufacturer of patented
non-intrusive sensing systems, today announced the sale of a FT Pipeline
Bending Monitoring System to a new oil and gas client. The fiber optic sensor
system is on a sour gas pipeline that crosses the Kakwa River south of Grande
Prairie, Alberta and is configured to look for strain caused by
post-construction settlement. The new FT system gives early warning of any
strain induced in the pipeline and enables the operator to take preventive
action to keep the pipeline safe. This project demonstrates sustained North
American sales progress and growing recognition as a mainstream supplier of
leading edge geotechnical monitoring products.
    Sean Carr, Interim President & CEO of FOX-TEK said, "The system allows
the operator to gather data for input into FOX-TEK's state-of-the-art DMAT
software and then to receive regular analysis of possible pipeline bending.
This new project typifies the keen interest shown by major pipeline companies
across Canada in our FT Monitoring Systems. It is exciting to see that our
patented technology is gaining a steady recognition in the energy market. This
type of success also helps us foster good relationships with our existing
clients and work towards broadening our new client base."

    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 offices in Toronto, ON; Calgary, AB; and Al-Khobar, Saudi
Arabia. FOX-TEK 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.

For further information:

For further information: FOX-TEK Company contact: Sean Carr, Interim
President and CFO, Fiber Optic Systems Technology, Inc., (416) 665-2288,; Investor Relations contact: Renmark Financial
Communications Inc.: Barry Mire,; Christine
Stewart,; Montreal: (514) 939-3989, Fax: (514)
939-3717; Toronto: (416) 644-2020, Fax: (416) 644-2021;

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