During the past year we have continued to focus on Zecotek's core business strategy: to commercialize technologies through strategic alliances with leading, world class players which provide expertise in product development, manufacturing processes, brand and market acceptance with established sales and distribution channels. This strategy is intended to secure revenues, optimize cash flow and protect intellectual property rights through unique profit sharing partnerships as well as minimize capital and operational expenditures. It is particularly suited to meet the challenges of the current global financial environment which has significantly impaired the flow of capital and created new challenges for technology development companies like Zecotek.

However, in spite of these challenges, I am pleased to report that our actions to preserve cash and minimize expenditures have not impacted the Company's ability to reach product development milestones, retain key staff, and importantly, deliver on key sales opportunities in both the Imaging and Laser Divisions. We continue to receive endorsements from respected scientific organizations, industry players and partners which was exemplified by the honour of the prestigious Frost & Sullivan 2009 Enabling Technology Award, received by Zecotek for its technological breakthroughs and product excellence in both PET (positron emission tomography) and PET/CT (computed tomography) medical imaging markets.

The Company continues to receive funding from the governments of Singapore and Malaysia – a welcomed validation of Zecotek's technologies, business model and management capabilities. Equally important is the continued support we receive from shareholders in 2009 as the Company raised over $4.3 million through non-brokered private placements. This funding allows the Company to maintain its competitive advantages both technologically and strategically. We are now completely focused on taking products to full production through credible and industry leading manufacturers. This phase of transfer to mass production is closely coordinated with the adoption timeline of major system integrators and end users and is expected to be completed in the first half of 2010. The Company has completed the majority of its technology development and is preparing to fill initial orders for a gamete of its products in early 2010.

Highlights of the past twelve months as Zecotek has made significant progress in each of the three major divisions:

ZECOTEK IMAGING SYSTEMS

Product Development

• Completed development of the MAPD-3N, a production based design upgrade from the advanced Micro-pixel Avalanche Photo Diodes (MAPD) solid-state photo detectors. The upgrade was a result of a close interaction with major end users.
• Developed new MAPD-3N devices with circular sensitive area of 1.1mm in diameter for the Centers for High Energy Physics (Large Hadron Collider) and bio- instrumentation markets.
• Developed a new pre-molded plastic package design which allows end-users to create multi sensor arrays for use in PET medical scanners.
• In the process of integrating a patent pending modular 4x4 Detector unit, based on a new ceramic-based 4x4 MAPD-3N array and a uniquely designed block with Depth of Interration measurement and scintillation capabilities. These dimensions are scalable and can be modified for application specific designs in particular for PET scanners.

Partnerships/Marketing

• We are in advanced discussions with two government agencies for the vertical integration and manufacture of cost effective PET and PET/MRI scanners for a national health program. By leveraging Zecotek's key components and imaging expertise there is an opportunity for new and substantial untapped markets.
• Established Zecotek as a prime candidate supplier to CERN (European Organization for Nuclear Research) for our MAPD-3N devices for their High Energy Particles Experiments, and more specifically, the Compact Muon Solenoid (CMS) Hadron Calorimeter experiment and NA61 experiment.
• Entered into discussions with a European medical imaging company to supply MAPD- 3N devices in array format for brain PET and dedicated scanners with smaller Field of Views.
• Initiated the transfer of the MAPD-3N device fabrication processes as well as the subsequent mass production to a major Singapore based semiconductor fabricator.
• Supplied MAPD evaluation samples to a major U.S. instrumentation manufacturer as a key component for a new range of flow cytometers and initial feedback has been positive.
• Received a purchase order from a major European organization for trial samples of our proprietary large dimensions format LFS3 crystal bars and initial feedback on testing has been very positive. We look forward to large volume orders for these high value bars.  

ZECOTEK LASER SYSTEMS

Product Development

• Completed transfer of our proprietary fiber laser technology to Fujikura who are now in initial production stage of our green fiber lasers. Trial samples have been delivered to major instrumentation OEM's.
• Completed development of a new proprietary femto-second fiber optic laser for bio- instrumentation, OCT, two-photon microscopy, and ID marking and encryption nanotechnologies.
• Introduced the High Power Solid State Green Laser "Mozart" for pumping ultra-wide- tuneable lasers. Extensions of this product will target semiconductor and material processing, optical cooling and trapping, OPO/parametric amplifiers.
• Successfully developed and tested a 532nm microchip laser advanced prototype, for projectors and semiconductor processing. Ten additional units are in production for marketing probes and promotional activities.

Partnerships/Marketing

• The U.S. National Institute of Health (NIH) reported excellent results with our GFL for flow cytometry applications and in March 2009, at their invitation, we co-authored a paper with Dr. W Telford reporting on key advantages of GFL's in cytometry.
• Developed the world's first tunable Green Fiber Laser (540-550nm) prototype which is in testing at the NIH. Other wavelength ranges are being completed for applications in bio-instrumentation (flow cytometry).
• Our Japanese manufacturing partners have started pilot production of smaller package/lower noise GFL 2.0 550 nm fiber laser.
• Received a preliminary specification from a major U.S. based instrumentation company for fiber lasers to be ordered in production quantities (pending satisfactory testing).
• Established a marketing and sales team in Vancouver, B.C. for North American sales with particular focus on Fiber Lasers for flow cytometry system OEMS and research labs.

ZECOTEK DISPLAY SYSTEMS

• We have successfully completed the development of our fifth generation pre- production prototype Real-Time 3D2D Display System. This 36" unit integrates a newly designed modulator unit manufactured under contract by LT-Pyrkal, (Armenia) and a next generation lenticular screen manufactured under contract by Anteryon (Netherlands). The PV delivers a significant enhancement of all key 3D parameters including: an increase in the number of perspectives from 40 to 94 (3D application specificity depends on an optimal number); viewing angle increased by approximately 40% from the prior prototype; frame rate augmented from 40Hz to 50Hz (with no flicker); and brightness is increased by 1.3 times.
• Work has been initiated on an up-grade of the system software to support real time capability using Xilinx GPU.
• We are presently in discussions with European and Japanese OEM's regarding production and commercialization of our 3D technology, and we have shipped our demonstration unit to our Zurich offices for a demonstration program for European OEM's and investors.

In addition to our corporate progress and our product development we are vigilant with building a very strong patent portfolio to protect our intellectual properties. Various key patents have been granted, while others are pending. Our vigorous strategy of patent protection will ensure that Zecotek's core technology assets remain secure and provide for continuing value as a source of new core enabling technologies, products and systems.

All-in-all we are very pleased with the growth in market acceptance and recognition of our photonics technologies. We have been successful at attracting respected scientific organizations and industry leading partners along with government and private funding which is clear validation of our technology and its market potential. We have set near term goals to complete optimal manufacturing and commercialization partnerships for our technologies and for each of the three divisions, in an effort to create the best possible value for our shareholders. I would like to thank you personally for your continued support.

Best regards,

Dr. Faouzi Zerrouk

Chairman, President and Chief Executive Officer Zecotek Photonics Inc.

About Zecotek

Zecotek Photonics Inc. (TSX VENTURE:ZMS)(FRANKFURT:W1I) is a photonics technology company developing leading-edge products: crystals, photo detectors, lasers, imaging and 3D display technologies, for medical, biotech, industrial, nanotech and atomic/molecular science applications. Founded in 2003, the company has three distinct operating divisions: Laser Systems, Imaging Systems and 3D Display Systems and labs located in Canada, the United States, Singapore, Malaysia and Russia. Zecotek commercializes its novel, patented and patent-pending photonic technologies directly and through strategic alliances and joint ventures with multinational OEMs, distributors and other industry leaders. For more information, please visit www.zecotek.com.

This press release may contain forward-looking statements that are based on management's expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what may have been stated. 

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