June 22, 1999

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

RICHMOND, BC - Mr. Terence A. Ibbetson, President of CON-SPACE Communications Ltd., (VSE:CCB) today announced receipt of an order for a special communication accessory developed under contract for use in the US Army program to "neutralize" Mustard Gas.

Under this program Litton PRC Defense Systems, a major supplier to the military, was responsible for designing a special communication system for the Chemical Demilitarization Teams who will do the actual work, wearing fully encapsulated safety suits. Litton developed a full duplex radio and asked CON-SPACE to design an appropriate speaker/microphone accessory for the user which would overcome the unique circumstances faced by teams working with these deadly chemical agents.

CON-SPACE assessed the problems and created a new accessory, built around its proprietary throat microphone technology. The accessory, which is now being delivered to Litton PRC, will be deployed first at the Aberdeen Proving Ground. As an added benefit, this device can also be offered to hazardous material handlers, fire fighting teams, SWAT teams and military bio-chemical teams.

US Congress has allocated $85 million in this year's budget to fund the beginning of a 5-6 year program to neutralization 1600 tons of the agent commonly known as Mustard Gas located at Aberdeen Proving Ground. Further stockpiles are located at seven other sites: Tooele, Utah; Umatilla, Ore.; Pine Bluff, Ark.; Pueblo, Col.; Blue Grass, Ky.; Newport, Ind.; and Anniston, Ala.

CON-SPACE, with its head office in Richmond, BC, and subsidiaries in Washington State and Kent, England, is the foremost designer and manufacturer of unique voice communication devices for the industrial and military market place.

The accessory developed for Litton PRC Defense Systems is only one of many special projects CON-SPACE is currently working on. The company manufactures products for its own distribution network and also for other companies under its Private Label program.

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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