SYNEX INTERNATIONAL INC - ANNUAL REPORT FOR FISCAL 2010

TSX : SXI

VANCOUVER, Sept. 20 /CNW/ - Revenue increased to $2,924,901 in fiscal 2010 from $2,688,811 in fiscal 2009. The increase in revenue is primarily a result of increased revenue from the 2.8 MW Cypress Creek Hydro Plant, being its first full year of operation, offset by a decrease in revenue from the Engineering Division and a decrease in revenue from the Ka:'yu:'k't'h'/Che:k:tles7et'h' First Nation (the "KCFN") in respect of the Kyuquot powerline.

For fiscal 2010 there was a net loss of $764,967 as compared to a net loss of $102,870 in fiscal 2009. The higher net loss in fiscal 2010 relates mostly to the write off of an account receivable from a client of the Engineering Division, Hawkeye Energy Corporation, in the amount of $477,585. Loss per share in fiscal 2010 was $0.03 per share as compared to $0.00 per share in fiscal 2009.

The balance of cash at June 30, 2010 was $1,389,701. As at June 30, 2010, the Company had loan agreements with Canadian Western Bank with total indebtedness of $10,731,448 of which $3,326,517 was primarily secured by the Mears Plant, $6,910,640 was primarily secured by the Cypress Plant and $494,291 was primarily secured by the Kyuquot Utility. At June 30, 2010, the Amended and Restated Credit Agreement with the Canadian Western Bank was fully drawn. At June 30, 2010, the Company has additional funding of $500,000 available under a Revolving Credit Line with the Canadian Western Bank.

In May 2010, initial construction was commenced on the 4.4 MW Barr Creek Hydro Project located on Vancouver Island, British Columbia. The target Commercial Operation Date for the Barr Creek Hydro Project is November 2011.

Effective May 28, 2010, the Company purchased a 10% interest in Robson Valley Power Corporation ("RVPC") and has an option to purchase a further 10% interest on or before June 15, 2012. RVPC owns and operates the 3.4 MW Ptarmigan Creek Hydro Plant (the "Ptarmigan Plant") located near McBride, British Columbia.

The Company owns and operates two hydroelectric plants totaling 6.6 MW, an electrical utility and has a 12.5% interest in the 6.5 MW China Creek hydroelectric plant, all located on Vancouver Island.

The provincial government in British Columbia has endorsed the development by private industry of environmentally sound hydroelectric plants and in July 2010, BC Hydro announced new terms and pricing under the Standing Offer Program. The McKelvie Creek Hydro Project (the "McKelvie Project") is being developed for submission under the Standing Offer Program and, in addition, the Company has over 25 water licence applications in various stages of development for various projects located on Vancouver Island and the Prince Rupert/Terrace area in British Columbia. The Company is also pursuing other acquisition opportunities in respect of power developments.

Synex International Inc. is a public company, trading on the TSX since 1987, with business interests that cover the development, ownership and operation of electrical generation facilities and the provision of consulting engineering services in water resources, particularly hydroelectric facilities.

    
        "signed"
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    Greg Sunell, President
    

For further information: 400 - 1444 Alberni Street, Vancouver, BC, V6G 2Z4, Phone [phone] Ext. 309, Fax [phone], E-mail: [email protected], Web Site: www.synex.com