Fiber Optic Systems Technology, Inc. - Corporate Update

TSX Venture Exchange: FOX

TORONTO, Oct. 13 /CNW/ - Fiber Optic Systems Technology, Inc. ("FOX-TEK" or the "Corporation") would like to announce that its current pipeline of purchase orders received and not yet shipped is $1,375,299 as of September 30, 2010. Of this amount, the sale of the Corporation's Pinpoint system to a number of oil and gas companies accounted for $655,000. The remaining $720,299 comes from sales at the Corporation's wholly owned subsidiary, Marcon International Inc. ("Marcon") to various government agencies of the United States and Saudi Arabia's Sabic Services, Qatar Petroleum, and Qatar Gas.

The Corporation is also pleased to announce that it has appointed Gerry Feldman to its board of directors.

Mr. Feldman is currently the Chief Financial Officer and Vice President, Corporate Development with Pinetree Capital Ltd., a TSX listed company. Mr. Feldman brings 28 years of merger and acquisition activities, corporate finance and financial experience. Prior to joining Pinetree Capital Ltd., Mr. Feldman was a senior Partner in a number of accounting firms where he provided consulting services to clients, specializing in audits of public companies and securities and mutual fund dealers. In addition to his accounting and finance experience, he holds senior officer and director positions in several junior mining companies that are listed on the TSX Venture Exchange, including Brownstone Ventures Inc. and Mega Uranium Ltd.

Mr. Allen Lone, the President and C.E.O. of the Corporation, says "We are excited at Gerry joining the board. We look forward to leveraging Gerry's expertise in corporate development, merger and acquisition activities and corporate finance as the Corporation continues to identify and pursue possible synergetic acquisitions."

As a result of its recent acquisition of Marcon, the Corporation continues to merge its business with that of Marcon. As it continues this process, the Corporation will identify all areas where duplicate services can be consolidated into one, identify synergies between the various business units and indentify opportunities to reduce costs. The Corporation believes that this efforts should result in a decrease in expenses.

The Corporation would like to correct information in its press release of October 6, 2010. The exercise price of the options should be $0.10 and not $0.085.

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.  

Through Marcon, FOX-TEK is also an industrial supply contractor servicing the energy sector and a number of US Government entities.  Marcon's principal business is the sale and distribution of industrial parts and equipment (electrical, mechanical and instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co. 

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.

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. 

For further information:

FOX-TEK contact:

Allen Lone, President & C.E.O., Fiber Optic Systems Technology, Inc., Tel: [phone] Ext 22
email: [email protected]