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Cantronic Reports Results for the Quarter Ended October 31, 2012

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/27/12 -- Cantronic Systems Inc., ("Cantronic" or the "Company") (TSX VENTURE:CTS) today announced its financial results for the third quarter ended October 31, 2012 ("FY13 Q2"). All amounts are reported in Canadian dollars unless otherwise stated.

Selected highlights of the quarter:


--  Revenue of $4.0 million from continuing operations, a decrease of 7%
    compared to $4.3 million for the corresponding quarter of the previous
    fiscal year. 
--  Adjusted EBITDA (a non-GAAP term) from continuing operations was
    negative $562K compared to negative $685K for the corresponding quarter
    of the previous fiscal year. The Company uses adjusted EBITDA (a non-
    IFRS financial measure) internally to make strategic decisions, forecast
    future results and evaluate its performance, defined as net income
    before interest, income taxes, depreciation, amortization, stock option
    compensation expenses, foreign currency loss, and minority interest. 
--  Gross margin from continuing operations of $806K (20% of revenue)
    compared to $1,093K (25% of revenue) for the corresponding quarter of
    the previous fiscal year. 
--  Net loss from continuing operations was $660K compared to a net loss of
    $844K in the corresponding quarter of the previous fiscal year.

Operating Results                                                          
---------------------------------------------------------------------------
($000's except per share amounts)                                          
                                                        FY13 3rd  FY12 3rd 
                                                         Quarter    Quarter
Revenue from Continuing Operations                         4,004      4,292
Adjusted EBITDA                                            (562)      (685)
Net income attributable to the owners of the Company       (587)      (877)
Net earnings (loss) per share, basic and diluted        $(0.006)   $(0.008)
---------------------------------------------------------------------------

Regulatory Filings

The material will be available through SEDAR at www.sedar.com and on the Company's website, www.cantronicsecurity.com.

About Cantronic Systems Inc.

Cantronic Systems Inc. manufactures, distributes, and provides training and services in the fields of IP-based networked video security surveillance technologies, specializing in networked video management software and video analytics, IP cameras, speed dome cameras, high definition video surveillance cameras and night vision surveillance systems for demanding security and surveillance applications.

Cantronic is a Tier 1 issuer on the TSX-V exchange, trading under the symbol CTS. For further information about Cantronic and Cantronic China, please visit our websites at www.cantronicsecurity.com and www.cantronics.com.cn.

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.

Contacts:
Cantronic Systems Inc.
James Zahn
Chief Executive Officer
604-516-6667 ext 228
jzahn@cantronics.com
www.cantronicsecurity.com

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