Syscan Releases 2006 Results

Syscan International (TSX VENTURE: SYA) today released its results for the year ended June 30, 2006. Sales for the year fell to $1,397,258 primarily due to a decrease in mobile printer related sales from $2,369,997.08 in 2005 to $583,681.21 in 2006. Operating expenses were $1,957,583 compared to $1,799,886 in fiscal 2005. The Company reported an operating loss of $1,656,372 compared to $897,891 in fiscal 2005, primarily as a result of the decline in sales, and allowances for inventory devaluation and accounts receivable. Cash used in operations fell to $1,315,439 from $1,532,309. Research and Development expenses grew to $765,415 from $308,797, an increase of 148% as RFID based application development was accelerated in preparation for commercialization. At the end of the year, working capital stood at $906,578 and there was no bank debt.

Mr. Axel Striefler, President and CEO of Syscan said, "Fiscal 2006 was a difficult year for the Company as demand for our rugged mobile printers declined significantly due to competition from smaller, less expensive thermal printers. Nevertheless we have made tremendous strides with our RFID applications which represent the future of the Company. We are looking forward to strong growth in 2007 as we commercialize our solutions in the food, pharmaceutical and military sectors. We are particularly excited about the forthcoming implementation of our RFID based solutions in conjunction with Quebec's mandated agricultural traceability programs across the province. When implemented, the system will undoubtedly be the most sophisticated and effective in the world. We are expecting additional military contracts this year and our pharmaceutical solutions are also attracting significant interest.

In other corporate news, the Company announced that Mr. Wilhelm Gantner has resigned as a Director and thanked him for his contribution over the last several years.

To view the Company's financial documentation visit

About Syscan International Inc.

Syscan is a world class supply chain solution provider that delivers integrated real-time tracking and tracing systems that improve business efficiency through Radio Frequency Identification (RFID). Its standardized supply chain solutions include traceability, temperature monitoring and quality control methodologies for the food, pharmaceutical and healthcare sectors. Shares of Syscan trade on the TSX Venture Exchange under the symbol SYA. There are approximately 39.4 million shares outstanding.


                                                    2006        2005

                                                       $           $
SALES                                          1,397,258   3,274,142

COST OF SALES                                  1,096,047   2,372,147

GROSS MARGIN                                     301,211     901,995


Administrative                                   901,648     920,346
Selling                                          562,433     740,627
Allow ance for inventory devaluation             283,405           -
Decrease in valuation of investment               52,600           -
Amortization of intangible assets                 43,235      26,781
Loss on exchange                                  41,465      47,212

Loss on disposal of fixed
 and intangible assets                            41,230       9,968
Amortization of fixed assets                      19,079      47,258
Financial                                         12,488       7,694
                                               1,957,583   1,799,886
OPERATING LOSS                                (1,656,372)   (897,891)

RESEARCH AND DEVELOPMENT COSTS                  (765,415)   (308,797)

LOSS BEFORE INCOME TAXES                      (2,421,787) (1,206,688)

INCOME TAXES                                           -           -

NET LOSS                                      (2,421,787) (1,206,688)

The TSX Venture Exchange has not reviewed this release and it does not accept responsibility for its adequacy or accuracy.

Syscan International Inc.
Darrell Munro, BBA, LLB

Syscan Customer Information:

CHF Investor Relations
Jeanny So
416-868-1079 ext. 225

CHF Investor Relations
Cathy Hume, CEO
416-868-1079 ext. 231

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