Zecotek Provides Update to LFS Crystal MOU with Chinese PET OEM

SINGAPORE--(Marketwired - March 21, 2017) - Zecotek Photonics Inc. (TSX VENTURE: ZMS) (FRANKFURT: W1I) (OTC PINK: ZMSPF), a developer of leading-edge photonics technologies for industrial, healthcare and scientific markets, is pleased to provide an update to the memorandum of understanding (MOU) with the Chinese medical OEM to purchase LFS scintillation crystals for a new line of medical scanners as previously announced on March 23, 2016. The MOU called for Zecotek's wholly owned subsidiary Zecotek Imaging Systems to supply LFS crystal elements to the Chinese OEM for up to 200 positron emission tomography (PET) medical scanners over the next 5 years, for clinics and hospitals across China. Due to the changing medical scanner landscape in China, the proposed agreement now calls for the Chinese OEM to purchase LFS crystal based arrays through the Shanghai EBO Optoelectronics Company (EBO).

"With the recent announcement that the EBO Opto-electronics will now use Zecotek's patented LFS scintillation crystals exclusively for PET scanner crystal arrays, the Chinese OEM requested a change to the MOU whereby they can purchase the LFS directly from EBO, based on the Zecotek-EBO arrangement," said Dr. A.F. Zerrouk, Chairman, President, and CEO of Zecotek Photonics Inc. "We have agreed to work through EBO because the change does not significantly affect the returns to Zecotek for the sales of LFS crystals contemplated in the MOU. Zecotek will continue to supply LFS crystals for up to 200 PET medical scanning units to be built by the OEM over the next five years. The delay in the execution of the MOU, was due to design configuration modifications to use arrays rather than single elements as well as other adjustments necessary to meet new stringent government regulations. The Chinese OEM has resumed its purchase of LFS crystals in array forms through EBO. Zecotek is working with EBO to develop a schedule to meet the OEM's production plan. We will provide a more quantitative update related to the MOU in the near future. We will continue to work with EBO and other PET OEMs to continue the growth in the sales of our patented LFS scintillation crystals in China."