SAN JOSE, Calif., Nov. 23 /PRNewswire-FirstCall/ -- Syscan Imaging, Inc. (OTC:SYII) (BULLETIN BOARD: SYII) the world leader in USB powered portable image scanners and developer of HDTV (High Definition TV) technology solutions through its SysView Technology group announces results for the third quarter ended September 30, 2005 of $2,207,083 in sales revenue compared to $1,954,684 reported for the comparable period in 2004. For the nine months ended June 30, 2005 the Company reported sales revenue of $5,402,306 as compared to $4,435,632 for the comparable period in 2004 representing a 21.7% increase in sales revenue. The increase in revenue is primarily attributed to increased product sales and marketing efforts and better-than-expected sales in the Company's new duplex scanner products that were introduced during the quarter ended. For the third quarter ended September 30, 2005, gross profit increased to $789,766, from $651,060, for the comparable period in 2004. The increase in gross profit is a direct result of increased sales of higher margin, new products. The net loss for the third quarter ended September 30, 2005 was $238,801 as compared to a net gain of $53,374 in the comparable period in 2004 and for the nine months ended September 30, 2005 the Company reported a net loss of $3,220,950 as compared to a net loss of $56,920 during the same period in 2004. It is important to note that the Company registered a non-cash charge of $2,812,000 during the quarter ended June 30, 2005, which is reflected in the net loss amount for the nine month period ended September 30, 2005. The non-cash charge that is reported on the statement of operations under stock-based compensation cost is a result of the Company's grant of certain stock options to employees at less than the fair market value of the Company's common stock on the date of grant. The change in net earnings barring the non-cash charge from the second quarter 2005 is primarily the result of a substantial increase in selling, general and administrative expenses. "We see these increased expenditures as being critical to meet future revenue growth and expansion in our HDTV Technology group," commented Darwin Hu, Chairman and CEO. The Company also announced today that it has completed its acquisition of Nanodisplay, Inc. "We are excited about the potential that Nanodisplay adds to our line up of HDTV technologies in development," said Darwin Hu, Chairman and CEO of Syscan Imaging, Inc., he continues, "We are very happy with the advancements Nanodisplay has made since the announcement of our intent to join forces." About Syscan Imaging, Inc. Syscan Imaging, Inc. designs and manufactures imaging technology solutions for a worldwide customer base. The company currently manufactures and delivers 20 plus proprietary mobile image-scanning products, which has allowed it to become the largest OEM - private label manufacturer of USB driven mobile scanning systems in the world. Syscan Imaging's intellectual property portfolio in the imaging area consists of 20 patents with an additional 4 patents pending. Recognizing the potential to leverage its years of imaging technology experience and manufacturing efficiencies Syscan began developing new technologies targeted towards the HDTV display market under SysView Technologies, Inc. These products are in various stages of development and are expected to begin reaching the marketplace in 2006. The products are designed to significantly enhance picture quality, decrease power consumption, and greatly reduce the manufacturing costs associated with High Definition televisions. All trademarks and copyrights contained herein are the property of their respective holders. Note on Forward-Looking Statements: Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on current expectations and are subject to a number of known and unknown risks, uncertainties and other factors beyond our control that could cause actual events and results to differ materially from these statements. These statements are not guarantees of future performance, and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Syscan undertakes no obligation to update publicly any forward-looking statements. DATASOURCE: Syscan Imaging, Inc. CONTACT: David P. Clark of Syscan Imaging, Inc., +1-408-436-9888, Ext. 200

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