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ComnetiX(TM) Inc Closes on Its Acquisition of Paragon Total Solutions Inc
Published Aug 10 2005
3 min read

ComnetiX(TM) Inc Closes on Its Acquisition of Paragon Total Solutions Inc

TORONTO, Aug. 10 /CNW/ -- ComnetiX(TM) Inc
(Toronto: CXI), a leading provider of biometric identification and
authentication solutions across North America, announced that it has closed
its acquisition of privately held, Carrollton, GA-based Paragon Total
Solutions Inc, a well-established provider of biometric technology serving
law-enforcement and government agencies with a significant customer base
throughout the southeastern United States.  Andy Horton, its former Chief
Executive Officer, has joined ComnetiX as the Company's Vice President of
Sales, Southeastern Region.
ComnetiX Chief Executive Officer Jim Scullion said, "The acquisition of
Paragon is the latest manifestation of our vision to become the dominant
player in the biometric technology arena, and to change the status quo with
our software-centric solutions.  With this acquisition we are expanding our
presence in a large and whole new region of the US.  We are glad to have Andy
on board and look forward to leveraging his extensive experience and broad
base of contacts to raise awareness and the benefits of ComnetiX, our products
and services within the Southeast."
As previously announced, the purchase price of the acquisition was US
$4.45 million, of which US $1.5 million was paid in cash, certain liabilities
were assumed, and the balance paid by way of issuance of approximately 800,000
common shares of ComnetiX.  The issued common shares are subject to
contractual restrictions on resale for a period of at least one year, with a
majority of such shares subject to a contractual escrow.
Results for the fourth fiscal quarter ending August 31, 2005, will reflect
combined results from the date of closing until the quarter end.  The first
full quarter of combined results will be reported during ComnetiX's first
fiscal quarter ending November 30, 2005.

About ComnetiX(TM) Inc
ComnetiX(TM) Inc provides secure identification and authentication
solutions to both the public and private sectors throughout North America.
ComnetiX offers multimode biometric identification solutions for use in areas
such as applicant screening, financial services, health care, transportation,
airlines and airports, casinos and gaming, and energy and utilities. Clients
include American Airlines, Lehman Brothers, New York City Health and Hospital
Corporation, New York State Division of Criminal Justice Services, Toronto
Police Services Board, Boston Police Department and the Royal Canadian Mounted
Police.  ComnetiX is also Canada's premier applicant fingerprinting services
company, facilitating tens of thousands of criminal background checks each
year through its chain of ten offices across Canada.  ComnetiX has recently
launched over 40 applicant fingerprinting services sites in the US, servicing
a wide variety of applicant types, including HazMat endorsees, bankers and
brokers, nurses, teachers, security guards, and volunteers.

Statements made in this news release that relate to future plans, events
or performances are forward-looking statements.  Any statement in this release
containing words such as "believes," "plans," "expects" or "intends" and other
statements that are not historical facts are forward-looking, and these
statements involve risks and uncertainties and are based on current
expectations.  Consequently, actual results could differ materially from the
expectations expressed in these forward-looking statements.

For further information

Investor Relations:
Jesse Deal
(877) 691-8087
investor.relations@ComnetiX.com

Tim Zahavich
ComnetiX Inc
(905) 829-9988 ext 206
investor.relations@ComnetiX.com

Media Relations:
Michael Corcoran
(416) 529-5709
mcorcoran@hartwellgroup.ca