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ComnetiX(TM) Signs Agreement to Acquire Paragon Total Solutions Inc; Will Hold Related Investor Conference Call
Published Jul 25 2005
3 min read

ComnetiX(TM) Signs Agreement to Acquire Paragon Total Solutions Inc; Will Hold Related Investor Conference Call

 A Beachhead in the Southeastern United States to Expand Geographic Coverage
  and Software Suite for Law Enforcement and Public Safety Agencies

TORONTO, July 25 /CNW/ -- ComnetiX(TM) Inc (TSX: CXI), a leading
provider of biometric identification and authentication solutions across North
America, announced today that it has signed an agreement and plan of merger to
acquire Paragon Total Solutions Inc, an established, privately-held,
Carrollton, GA-based biometrics technology company with a broad base of law
enforcement and government customers throughout the southeastern United
States. The purchase price totals US $4.45 million, consisting of assumption
of certain Paragon liabilities, approximately US $1.5 million in cash paid to
the Paragon shareholders and approximately 820,000 ComnetiX Common Shares. The
ComnetiX Common Shares will be subject to contractual lockup for at least one
year and a majority of such shares will also be subject to a contractual
escrow. Subject to the satisfaction of certain closing conditions and
regulatory approval, the deal is expected to close by August 15, 2005.
Paragon's founder Andy Horton will serve as Vice President of Sales --
Southeastern Region for ComnetiX following the closing.
Paragon was incorporated in 1998 and recorded approximately
US $2.9 million in sales in calendar year 2004.  Approximately 200 customers
in the Southeast are currently employing one or more of Paragon's
comprehensive solutions, such as Paragon's record and jail management software
solutions, or its arrest booking and applicant screening fingerprinting
solutions for criminal and job-applicant needs, or its software for mobile
applications linking law enforcement agencies with officers in the field.
Paragon's flagship product family, EAGLEADVANTAGE, is a comprehensive
suite of software solutions specifically designed for law enforcement and
public safety agencies and complements the products ComnetiX currently offers,
according to ComnetiX CEO Jim Scullion.
"This acquisition allows us to round out our suite of biometric software
solutions for law enforcement and public safety agencies, particularly in the
jail and records management areas.  Just as important, however, it adds
Paragon's established customer base in a part of the country that we need to
serve -- the southeastern United States," Scullion said.  "Our goal has been
to expand our presence from Canada, New York and the Northeast to other parts
of North America. We've made initial strides in building a customer base in
the Midwest and California and now Paragon provides us an immediate operation
and sales force that is known and respected in the Southeast."

Investor Conference Call
At 4:15 PM EDT today, Monday, July 25, 2005, ComnetiX will host an
investor conference call to discuss its pending acquisition of Paragon Total
Solutions Inc; the call will also be broadcast live over the internet at
www.vcall.com. An Internet replay will be available through August 1st as
well, at the URLs noted above.

About Paragon Total Solutions Inc (www.paragontotalsolutions.com)
Paragon Total Solutions Inc (Paragon) was incorporated in 1998 for the
single purpose of providing advanced technology as a total solution for the
public safety community.  Paragon provides a complete comprehensive suite of
public safety software and integrated turnkey solutions that include mobile
systems, a full-featured computer aided dispatch system, live-scan (criminal &
applicant), Internet data sharing, AFIS and archive systems.

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.  In addition, ComnetiX
has recently launched its first applicant fingerprinting services office in
the US, located in Sacramento, California.

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
 1-877-691-8087 (toll-free)
 investor.relations@ComnetiX.com

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