PASON SYSTEMS INC. ANNOUNCES REPURCHASE OF LATIN AMERICA DISTRIBUTION RIGHTS

    
    Stock Exchange: TSX
    Symbol: PSI
    

CALGARY, Oct. 13 /CNW/ - Effective January 1, 2011, Pason Systems Inc. ("Pason" or "the Company") will repurchase the distribution rights for marketing Pason products in Latin American countries from the current holder, Gary Storey and his DGS companies. The countries involved in the repurchase agreement are Mexico, Colombia, Brazil, Peru, Ecuador and Argentina.

Similar to what Pason did at the beginning of 2010 in Australia, there is a point in the maturation of startup foreign country businesses where the business can be managed more effectively integrated into Pason operations, than through an independent contractor. This possibility is addressed in the initial agreement with any new foreign partner.

All employees of the current DGS Latin American companies will be offered employment by Pason and all relevant contracts will be continued. After having paid to repurchase the distribution rights, Pason will benefit from 100% of the revenue earned in these countries which, at current activity levels, should contribute approximately $10 million of additional revenue in 2011. Gary Storey will continue to work with Pason and has been offered a position as a consultant within the newly formed New Revenue Group where he is expected to make a valuable contribution mentoring new foreign partners. Pason would like to acknowledge the excellent work Gary performed over the past seven years in building up effective service organizations in the above mentioned countries.

Pason Systems Inc. is a leading international provider of specialized rental and sold oilfield instrumentation systems for use on land and offshore rigs. The Company's tightly integrated package of products and services, including data acquisition, wellsite reporting software, remote communications and internet information management tools, maximizes rig uptime and minimizes operating costs.

Pason's common shares trade on the Toronto Stock Exchange under the symbol PSI. For additional information visit the Company's website at www.pason.com.

For further information: Jim Hill, Chairman, President and CEO, 403-301-3401, [email protected]; Jim Glasspoole, Chief Financial Officer, 403-692-3840, [email protected]