Mr. David Ross reports

DEQ ISSUES STOCK OPTIONS

DEQ Systems Corp. has issued 250,000 stock options to David D. Ross, chairman of the board, in accordance with the stock option plan of the company.

Each option will confer to Mr. Ross the right to subscribe one common share of DEQ Systems at an exercise price of 20 cents per share. Stock options are fully vested as of the date of grant.

We seek Safe Harbor.