Plaintree Systems Inc. Announces Decision to Move to New Leased Premises

Plaintree Systems Inc. (CNSX: NPT), today announced that it will be moving its operations. The Company will remain in Arnprior, Ontario and has agreed to lease a 145,000 sq/ft building next door to its current location at 10 Didak Drive in Arnprior, Ontario.

“We have outgrown our existing space,” said David Watson CEO. “With the creation of our new Arnprior Fire Trucks Corp., announced earlier this week, there is definitely a need for more space. This new business will involve the manufacturing and sale of firetrucks and emergency vehicles and once this business ramps up, we could have up to 10 trucks on the floor at any one time.”

The new premises is owned by Tidal Quality Management Corporation, a company owned by Targa Group Inc., Plaintree’s largest shareholder and a company controlled by David Watson, Plaintree’s CEO. The lease for the new premises will be for five years. The rent for the premises will be $0.41 per sq/ft in the first year (annual rent of approximately $60,000) increasing $1.00 per sq/ft per year thereafter until rent reaches $3.41 and rent will remain at $3.41 per sq/ft for the balance of the term (annual rent of $494,000). This rent is considerable less expensive than average rents for buildings in Arnprior of $4.00 per sq/ft. The Company expects to spend approximately $400,000 in leasehold improvements for the new premises during the next quarter.

The lease transaction is considered to be a related party transaction under Canadian securities law. However, the transaction is exempt for the special approval and evaluation requirements under Multilateral Instrument 61-101, Protection of Minority Shareholder Interests in Special Transactions as it is considered to be an ordinary course of business transaction for the Company.

Once the move to the new premises is complete, expected early 2011, Plaintree will no longer require its existing two buildings in Arnprior and steps are presently been taken to sell the two buildings. The funds obtained from the sale will be used to retire debt related to the buildings and for general working capital purposes.

For more information on Plaintree, please refer to Plaintree’s first quarter 2011 financial statements together with the related Management’s Discussion and Analysis report, copies of which can be obtained from the Company’s website at www.plaintree.com and/or under Plaintree’s name at www.sedar.com.

About Plaintree Systems

Plaintree has two diversified product lines consisting of Structural Steel and Electronics.

Hypernetics was established in 1972 and was a manufacturer of avionic components for various applications including aircraft antiskid braking, aircraft instrument indicators, solenoids, high purity valves and permanent magnet alternators. The legacy Hypernetics and Plaintree free space optics businesses are managed as the Electronics Division of newly amalgamated Plaintree Systems Inc.

The Specialty Structures Division formally the Triodetic Group, with over 40 years of experience, is a design/build manufacturer of steel, aluminum and stainless steel specialty structures such as commercial domes, free form structures, barrel vaults, space frames and industrial dome coverings.

Plaintree operates a full service fire truck supply business through its wholly-owned subsidiary, Arnprior Fire Trucks Corp.

For more information on this company, please refer to Plaintree’s first quarter 2011 financial statements together with the related Management’s Discussion and Analysis report, copies of which can be obtained from the Company’s website at www.plaintree.com and/or under Plaintree’s name at www.sedar.com.

Plaintree is publicly traded in Canada on the Canadian National Stock Exchange (NPT) and in the U.S. on the OTC BB (PTEEF), with 12,522,143 common shares and 18,325 class A preferred shares outstanding.

This press release may include statements that are forward-looking and based on current expectations. The actual results of the company may differ materially from current expectations. The business of the company is subject to many risks and uncertainties, including changes in markets for the company’s products, delays in product development and introduction to manufacturing and intense competition. For a more detailed discussion of the risks and uncertainties related to the company’s business, please refer to documents filed by the company with the U.S. Securities and Exchange Commission and Canadian regulatory authorities, including the Company’s audited annual statements and management discussion and analysis for the year ended March 31, 2010 and the Company’s Form 20-f dated September 27, 2010.

Canadian National Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Plaintree Systems (CSE:NPT)
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