Sirit Provides Business Update

Company focuses on strategy, reduces costs, consolidates management and 
provides guidance for 2005

TORONTO, Sept. 16 /CNW/ - Sirit Inc. (TSX: SI), a leading provider of
radio frequency identification (RFID) technology, announced today that it is
taking action to reduce expenses and consolidate certain organizational
functions.
"Since taking control of Sirit, I have spent a great deal of time meeting
with customers and partners, reviewing our operations as well as refining the
go-forward strategy of the Company," said Norbert Dawalibi, President and CEO.
"I believe it is imperative for us to align our expenditures with revenue
streams as RFID technology is being adopted. We are taking concrete action to
reduce our costs while continuing to invest in a market that we are convinced
represents a significant opportunity for Sirit and our shareholders."
"In an effort to bring expenditures in-line with current revenue
forecasts, the Company has taken cost cutting measures primarily focused on
staff and discretionary expense reductions. Review of the organization
determined areas where management is committed to achieving efficiencies
without disrupting development activities until future revenue streams are
secured," commented Anastasia Chodarcewicz, Chief Financial Officer, Sirit
Inc. "As a result, Sirit has taken a headcount reduction of over 15% resulting
in a one-time cost of approximately C$200,000 which will be recognized in the
third quarter. These actions are expected to convert into annual cost savings
of approximately C$1.3 million."
Sirit has named Don Bergeron, Vice President, Operations, who, in
addition to overseeing manufacturing activities, will assume management of
engineering and development responsibilities from Loek d'Hont, Chief
Technology Officer, who has left the Company. Don joined Sirit in 1998 and
brings over 25 years of experience managing product design, development
strategies with 11 years focused in the RFID market. Don spent 18 years at
Texas Instruments, where he held numerous managerial positions including North
American Operations Manager for their RFID group.
Based on actual year-to-date results and current trends, the Company is
providing 2005 financial guidance relating to its continuing operations for
revenues of approximately 20-25% below previous year results.
In 2004, Sirit experienced unusually strong sales of electronic toll tags
as customers offered promotional programs and took shipment of high volumes of
tags. Although Sirit has not lost a single customer this year, agency
consolidation and higher customer inventory levels built in the previous year
have resulted in reduced or delayed toll tags orders in this fiscal year.
Sirit believes that toll tag orders will experience growth in 2006 compared to
2005. Overall, Sirit anticipates that revenue will grow in all of its market
applications in 2006.
"Focusing on our strengths, we have developed a clear strategy. Sirit
will continue to develop and manufacture RFID-enabling hardware to remain a
trusted OEM provider to leading suppliers of RFID solutions. We will enter new
application markets with products that target all applications areas -
electronic tolling, access control and supply chain are only a start,"
continued Norbert. "We will continue to grow our product offering and have
built a product roadmap that is well underway as evidenced with the launch of
our most recent UHF module, the INfinity 210. We will continue to address
global markets through new distribution channels and with the introduction of
new products aimed at these markets. We will also continue to look for
acquisition opportunities that add value to our core technology offerings
which speed our entrance into specific markets or application verticals.
According to Venture Development Corporation, RFID represents in 2005 a
$2.4 billion opportunity and Sirit intends to be a leader across a variety of
applications in this emerging market."

About Sirit Inc.
Sirit Inc. (TSX: SI) is a leading provider of Radio Frequency
Identification (RFID) reader technology to OEMs and solution providers
worldwide. Harnessing the power of Sirit's enabling-RFID technology, customers
are able to more rapidly bring high quality RFID solutions to the market with
reduced initial engineering costs. Sirit's products are built on more than
12 years of RF domain expertise addressing multiple frequencies (LF/HF/UHF),
multiple protocols and are compliant with global standards. Sirit's broad
portfolio of products and capabilities are easily customized to address new
and traditional RFID market applications including Supply Chain & Logistics,
Cashless Payment, Access Control, Inventory Control & Management, Asset
Tracking and Product Authentication. For more information on Sirit, visit
www.sirit.com.

Cautionary Note Regarding Forward Looking Statements
Safe Harbor Statement under the United States Private Securities
Litigation Reform Act of 1995: Except for the statements of historical fact
contained herein, the information presented constitutes "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievement of Sirit to be materially different from any future
results, performance or achievements expressed or implied by such forward-
looking statements. Readers are cautioned not to place undue reliance on these
forward-looking statements. Actual results may differ materially from those
indicated by these forward-looking statements as a result of risks and
uncertainties impacting Sirit's business which are discussed in the section
entitled "Description of the Business - Risks Factors" in Sirit's Initial
Annual Information Form dated March 22, 2005 as filed with the securities
regulatory authorities in Canada via SEDAR. Although Sirit has attempted to
identify important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be as
anticipated, estimated or intended.