October 13, 1998

Trading Symbol VSE: CCB
US SEC Exemption No. 82-3378


RICHMOND, BC - Mr. Terence A. Ibbetson, President of CON-SPACE COMMUNICATIONS LTD., (VSE: CCB) announced today that a three year contract has been signed with SCOTT AVIATION, a leading manufacturer of Respiratory Protection Products in North America. CON-SPACE has designed and will manufacture a customized two-way radio accessory exclusively for SCOTT. Using first year commitments only for each of the three years, this contract is worth over two million dollars.

"Earlier this year SCOTT contracted CON-SPACE to design and manufacture the SCOTT Con-Space Link," said Ibbetson, "a communication accessory attaching to their Premium Facepiece, the AV-2000, allowing direct connection to any of our Confined Space Communication Systems." He continued, "As a result of their satisfaction with this unit, SCOTT requested we develop a similar product to interface with two-way radios and earlier this week contracted CON-SPACE to manufacture this unit exclusively for them."

The new product, called the SCOTT E-Z Radiocom (trademarked by SCOTT), also attaches to the SCOTT AV-2000, and allows its users to communicate over portable two-way radios. Interest for this product came from Fire Departments in North America who presently use SCOTT breathing equipment and from their many industrial, municipal and military customers.

The contract between CON-SPACE and SCOTT, which is renewable after three years, calls for a minimum annual quantity but specifies no upper limit as to the quantity that SCOTT may order during the life of the agreement. Due to volume requirements, CON-SPACE started a new production line specifically to manufacture the SCOTT Con-Space Link and SCOTT E-Z Radiocom accessories.

CON-SPACE recently announced a 30% sales increase in its last fiscal year, which ended June 30, 1998, and said it was preparing for exponential growth this year. This new contract, one of many in process, will undoubtedly contribute substantially to this year's growth.

CON-SPACE (a contraction of confined space) began marketing its products in July of 1992. Since then, the company has earned a reputation as the world's leading authority on specialized voice communication equipment for confined space locations, hazardous atmospheres and noisy environments. Currently CON-SPACE has offices in Canada, the United States and England, with distribution outlets in various other countries around the world.


For more information, please call James L. Swanson, Chairman CON-SPACE COMMUNICATIONS LTD., (604) 244-9323, (800) 755-2528 in the U.S., or by e-mail [email protected]

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