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Operational Highlights

During the third quarter ended October 31, 2009, Cantronic continued to execute its growth strategy to:

• Implement our China growth strategy by building our security and video surveillance system integration business in China.
• Expand technology and product leadership to enhance its competitive advantage and increase scope of products.

China represents a unique opportunity for Cantronic as the highly-fragmented Chinese surveillance and security market has been growing at an annual rate in excess of 30%. It was estimated to reach $43 billion by 2010, according to China Public Security Guide (published before the current financial crisis by the Chinese Security and Protection Association) due in part to the Chinese government's mandate for nationwide installation of surveillance and security systems. Programs such as the Safe City Initiative cover 666 cities country-wide. Additionally, stimulus packages announced by various levels of Chinese governments during the recent recession provide more business opportunities for Cantronic as the stimulus packages significantly boost public spending on infrastructure projects that typically require video surveillance systems.

"We are very pleased that Cantronic continued its strong growth and profitability in the third quarter, after a strong second quarter. Our strategy of investing in new product development based on our proprietary core infrared sensor technology and expanding in China through system integration and acquisitions is generating results on the top and bottom line," commented James Zahn, President & CEO of Cantronic, "We are focusing on growing our business in China by providing a total solution for networked security and surveillance systems in the China market. With platform software from AVINFO and network camera from Yellow River, our wholly- owed subsidiary, Cantronic Security Systems (China) Co., Ltd. is able to bid on Safe City projects as a general contractor with our national level one security and surveillance system installation license. We are currently bidding on several projects as well as assessing other acquisition opportunities to continue to grow our business in China."

Revenues

For the quarter ended October 31, 2009, Cantronic recorded revenues of $4,749,510 compared with $1,049,134 in 2008, representing an increase of $3,700,376 or 353%. The increase is directly linked with the revenues from our China operations and volume orders of thermal imaging cameras and detectors.

For the quarter, Cantronic recorded revenues of $3,145,198 (nil – 2008) from its China operations which included camera and software sales from our two acquisitions as well as system integration business from our recently established wholly-owned subsidiary – Cantronic Security Systems (China) Co. Ltd.

Adjusted EBITDA

For the third quarter ended October 31, 2009 we are disclosing adjusted EBITDA, a non-GAAP financial measure and supplemental indicator of operating performance. We define adjusted EBITDA as net income before interest, income taxes, depreciation, amortization, stock option compensation expenses, foreign currency loss, as well as minority interest. We use the adjusted EBITDA internally to make strategic decisions, forecast future results and evaluate our performance. We believe our current and potential investors can use this measure to assess our current and future operating results and to make investment decisions. Investors should not consider adjusted EBITDA as an alternative to cash provided by operating activities, nor to any other indicators of performance or liquidity which have been determined under GAAP. Adjusted EBITDA do not have any standardized meaning prescribed by GAAP and may be different from and therefore not comparable to similar measures presented by other companies.

For the third quarter, adjusted EBITDA amounted to $1,134,821 compared with a loss of $987,670 for the same quarter the previous fiscal year. This increase is due to increased sales and contributions from acquisitions.

Net Earnings

The net profit amounted to $730,860 or per share of $0.009 for the quarter ended October 31, 2009 as compared to net loss of $1,184,080 or loss per share of $0.015 for the same period last year. The increased profitability in the quarter is directly linked to higher sales and strong margins despite higher SG&A expenses due to additional expenses from two new acquisitions and increases in R&D spending.

The financial statements are available for review on SEDAR at [ www.sedar.com ] and on the Company's website at [ www.cantronics.com ].

About Cantronic Systems Inc.

Cantronic Systems Inc. manufactures, distributes, and provides training and services in the fields of infrared vision and video security surveillance technologies, specializing in passive and active infrared cameras, infrared illuminators, low light infrared sensitive CCD cameras and long-range night vision surveillance systems for demanding homeland security and surveillance application.

Cantronic holds a valid medical device manufacturing license and is a manufacturer and distributor of its fever scan thermal imaging camera systems which has been widely deployed in public facilities such as airports, railway stations, and border crossings worldwide during the SARS (Avian/Bird Flu) outbreak in 2003 as well as during the Swine (H1N1) Flu pandemic in 2009.

Cantronic, through its US subsidiary QWIP Technologies, Inc. ("QWIPTECH"), holds a worldwide, exclusive license from the California Institute of Technology ("Caltech") to produce and sell infrared detectors and sensors based on Caltech's Quantum Well Infrared Photodetector technology.

Cantronic, through its China subsidiaries Cantronic Security Systems (China) Co. Ltd., Beijing Advanced Videoinfo Technology Co. Ltd. ("AVINFO") and Shenzhen Huanghe Digital Technology Co. Ltd. ("Yellow River"), provides 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 and QWIPTECH, please visit our websites at [ www.cantronics.com ] and [ www.qwip.com ].

Safe Harbor Statement

The Securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Forward-looking statements contained in this press release involves 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 the said forward-looking statements.

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.