Extreme CCTV Acquires Forward Vision CCTV


British Specialist Broadens Extreme Portfolio

Vancouver, British Columbia - July 18, 2006 - Extreme CCTV Inc. ("Extreme" or "the Company") (TSX:EXC), the global leader in the design, development and manufacture of active-infrared surveillance equipment, today announced that it is acquiring Forward Vision CCTV Ltd. ("Forward Vision"), a leading UK designer, developer and manufacturer of intelligent mechanical PTZ (pan/tilt/zoom) cameras, for total consideration of approximately C$10.0M. For its latest completed fiscal year ended Aug 31st 2005, Forward Vision had revenues of £3.3 million. Forward Vision has delivered sales growth of 20% or more annually in each of the last 3 years while being consistently profitable.

Management anticipates that the strategic acquisition will add substantially to revenue. It will also add significantly to Extreme's product portfolio, market-channels and R&D capability. The technical expertise at Forward Vision augments Extreme's world-class engineering team and the founding engineers of Forward Vision will be retained. Extreme will also maintain Forward Vision's commitment to service and quality while operational capabilities will be increased to support expected sales growth. Forward Vision's PTZ products are considered by many in the security industry as among the best of Britain, where CCTV security has the highest per capita usage in the world.

Forward Vision was founded in 1998 by British experts in electro-mechanical surveillance devices who have more than 20 years experience in the design and manufacturing of market leading surveillance cameras, platforms and housings. Forward Vision has developed a unique type of PTZ camera that is compact, ruggedized and perfected for electro-mechanical and optical performance. Their flagship product, the Mic1-400, now dots the British surveillance landscape at hundreds of locations for town centre surveillance and transportation systems security.

Forward Vision products have established a successful niche in the British security market and will now be marketed through Extreme's established and growing global sales channels. The Forward Vision product portfolio is specifically targeted at the security demands of critical infrastructure and Homeland Security. Forward Vision's recent developments that integrate with or embed technologies in thermal sensing, radar detection, electronic gyro-stabilization and internet protocol (IP) broaden the future sales outlook for Forward Vision products. By combining Extreme CCTV's active-infrared night vision with Forward Vision's PTZ mechanical control, Extreme will have a valuable and unique set of surveillance capabilities to offer its global customer base in the Homeland Security, defense and commercial security markets.

"With the acquisition of Forward Vision, Extreme will offer a broader range of products with increased functionality and performance for larger critical surveillance projects throughout the world," says Jack Gin, President and CEO of Extreme CCTV. "The combined product mix, which will include software-driven and network-capable solutions, will allow Extreme to better deliver on its declared mandate to detect, classify, recognize, and identify threats with immediate clarity."

Transaction Overview

Extreme CCTV will purchase all of the outstanding shares of Forward Vision for initial cash consideration of C$4.3 million (₤2.1 million), C$3.1 million (₤1.5 million) in non-interest bearing notes payable and an estimated C$2.6 million in share consideration, based on the July 17, 2006 closing share price of $2.52 per share, consisting of 102,400 shares payable on closing and 921,600 shares payable upon Forward Vision meeting certain milestones. The total equivalent cash consideration is estimated at C$10.0 million. The transaction is expected to close on, or prior to, July 31, 2006, subject to certain closing conditions including TSX approval.

Contact: Cory Pala
Investor Relations
CPala@ExtremeCCTV.com
Toll Free (N.A.) 1.877.657.5276

Extreme CCTV International Inc.
Extreme CCTV UK Ltd.
Extreme CCTV Inc.
www.ExtremeCCTV.com
USA/Canada: T.1.604.420.7711
UK/Europe: T.+44.1670.730.187
TSX: EXC

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