Cantronic Completes Sale of Its 51% Interest in Yellow River

Cantronic Sys­tems announced that fur­ther to the news release of Sep­tem­ber 16, 2011, the Company's wholly-owned sub­sidiary, Cantronic Secu­rity Sys­tems (China) Co., Ltd of Shang­hai, China ("CSSC"), has closed the sale of its 51% inter­est in Shen­zhen Huanghe Dig­i­tal Tech­nol­ogy Co. Ltd., of Shen­zhen, China ("Yel­low River") to an arms-length pri­vate purchaser.

"The sale of this busi­ness unit will pro­vide imme­di­ate work­ing cap­i­tal, allow­ing us to fur­ther grow our other China busi­ness units in the area of net­worked video sur­veil­lance," said James Zahn, Pres­i­dent and CEO of Cantronic Sys­tems Inc.

Cantronic also announced that Dr. John Shen has been appointed as an inde­pen­dent direc­tor of the Com­pany and chair of the Audit Com­mit­tee. John replaces Jeff Yenyou Zheng who has just resigned for per­sonal rea­sons. We thank Mr. Zheng for his ser­vices to the Board and the Com­pany over the last two years.