Mr. Anthony Nelson reports

ESTEC SYSTEMS CORP. UPDATE ON ACQUIRING ENCORE ELECTRONICS INC.

Due diligence relating to ESTec Systems Corp.'s acquisition of Encore Electronics in Saratoga Springs, N.Y., is continuing. The company's auditors were on site last week. Negotiations relating to financing are nearing completion. The letter of intent has been amended to move the closing date to April 30, 2011.

This allows environmental consultants snow-free access to the site for an environmental review. It also provides leeway for auditors and solicitors.

The expected acquisition of Encore will allow ESTec to better serve current clients through an enhanced range of products and services. It will give the company a stronger presence in the United States, and a wider range of clients in aerospace, power and related sectors.