November 14, 1996


Richmond, B. C. -- Mr. James L. Swanson, Chairman of CON-SPACE COMMUNICATIONS LTD. (VSE:CCB) announced today that a contract has been signed with CairnsAir to supply them with CON-SPACE "private labelled" products. The contract is worth approximately $200,000 per year.

Negotiations between Mr. Terence A. Ibbetson, President of CON-SPACE, and CairnsAir were finalized with a formal contract for CON-SPACE to manufacture the full range of CON-SPACE equipment, private labelled with the CairnsAir name and logo. CairnsAir has been supplying a variety of equipment to Fire Departments for over 100 years. During this time, they developed their own breathing apparatus which they manufacture and distribute through their well established network.

"CON-SPACE is recognized as the leader in the field of confined space communication equipment. CairnsAir asked us to manufacture equipment for them," said Swanson. "They have a substantial distribution network and are experts in their own field. Now, with the addition of CON-SPACE they are able to offer a more comprehensive package to their clientele."

This contract is a long term arrangement in which CON-SPACE provides completed products starting early next year. "We expect the annual volume to steadily increase over the years," said Swanson. "CON-SPACE has various plans to escalate their present growth rate and the OEM (Original Equipment Manufacture) business is a major part of those plans."

CON-SPACE, which started only four years ago, is currently the World leader in the design, manufacture and marketing of specialized confined space and hazardous environment communication equipment used in the Industrial, Municipal, Military and Rescue Markets throughout North America, Great Britain, New Zealand, Australia, Hong Kong, and South Korea. The OEM business has been part of their overall operation for in excess of a year now and is expected to continue to grow in future months.

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