FOX-TEK closes private placement financing for US$5 million

On October 13, 2006, Fiber Optic Systems Technology Inc. ("FOX-TEK"), a provider of patented fiber optic sensor systems, announced that it had closed the second part of a previously announced agreement with Research Capital Corporation ("Research"), under which Research agreed to buy 2.5 million common shares from the Company at a price of $2.00 per share, representing an aggregate amount of $5.0 million. Research also exercised an option to purchase a further $1.5 million of common shares. Fasken Martineau acted as underwriter's counsel to Research Capital Corporation with a team comprised of Rubin Rapuch, Jennifer Armstrong and Nancy Eastman.