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Cantronic to Provide Kaili City Video Surveillance System for $2.6 Million

Cantronic Systems Inc., (“Cantronic” or the “Company”) (TSX VENTURE:CTS)(PINK SHEETS:CRIXF) announced today that it has been awarded a contract by the local China Unicom (one of the three main telecom operators in China) to provide an expansion of the city-wide networked video surveillance system (“Safe City”) to Kaili city which is located in China’s Guizhou province and subsequent maintenance service totaling RMB 16 million (approximately Canadian $2.6 million). Cantronic will supply and install complete solutions that will network together 200 new surveillance cameras with 1,463 cameras already installed in banks, gas stations and public schools with Kaili city’s existing Safe City video surveillance system. Kaili city’s existing Safe City system was originally supplied and installed by Cantronic in 2009 and this is its first of many possible expansions. Cantronic would receive payments against deliveries of cameras and software and then progress payments to a total of 90% of the supply and installation contract value of RMB13.4 million (C$2.2m) at completion of installation, expected in about 3 months. The award also includes maintenance service valued at RMB2.6 million ($0.4m) for the 5 years after installation.

This current expansion is a part of the new regional sky net crime prevention video surveillance monitoring system (“Sky Net”). The local Sky Net system is an expanded Safe City program to allow each city’s Safe City systems in the South Eastern region of Guizhou Province to be networked together as well as to integrate new and existing cameras in key commercial facilities such as banks, gas stations, schools, hotels, office buildings and residential complexes throughout the region. In this regional Sky

Net system, Cantronic’s video networking platform and management software is the key to network such a great number of cameras over such a large area together.

“This project award reflects our experience in providing sophisticated city-wide networked video surveillance systems for China’s expanding Safe City and now Sky Net programs. We were initially approached by the local police bureaus to take on this expansion in the beginning of the year which they want to pay us in 3-5 years after completion. We declined to take on the mandate due to payment term issues and finally were able to convince them to work through China Unicom as the primary contractor and financing partner for this project. This allows us to be paid very quickly by China Unicom and have the resources to take on many more such projects together with a key telecom operator in the region. With this new project arrangement model as well as Kaili city being the capital and largest city of the South Eastern region of Guizhou province, we believe we will have the ability to carry on further expansions of this Sky Net program to other 14 cities and counties in the region without the constraints of working capital. There are more than 70 cities in China using Cantronic software solutions with expansion opportunities such as this amounted to $13 billion over the next 9 years,” said James Zahn, President and CEO of Cantronic Systems Inc.

About Cantronic Systems Inc.

Cantronic Systems Inc., based in Coquitlam, British Columbia, Canada, manufactures, distributes, and provides training and services in the fields of IP-based networked video security surveillance technologies, specializing in networked video management software and video analytics, IP cameras, speed dome cameras, high definition video surveillance cameras and night vision surveillance systems for demanding security and surveillance applications.

Cantronic, through its China subsidiaries Cantronic Security Systems (China) Co. Ltd (“CSSC”), Beijing Advanced Videoinfo Technology Co. Ltd. (“AVINFO”), and Actiontop Electronics (Shenzhen) Co. Ltd. (“Actiontop”) provides high-speed and digital networked video surveillance solutions to government and corporate customers in China.

Cantronic is a Tier 1 issuer on the TSX-V exchange, trading under the symbol CTS. For further information about Cantronic, please visit our website

Forward-looking statements

This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Cantronic Systems Inc. and the markets in which it operates. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Cantronic to be materially different from any future results, performance or achievements expressed or implied by said forward-looking statements.

Forward-looking statements include, but are not limited to: the completion of the Proposed Transaction, anticipated share capital following completion of the Proposed Transaction, expectations, opinions, forecasts, projections and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved.”

Readers are cautioned not to place undue reliance on such forward-looking statements. Forward- looking information is provided as of the date of this news release, and Cantronic Systems Inc. assumes

no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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