Active Control Technology Inc. (TSX-V:ACT) announced today that it has signed a memorandum of understanding (‘MOU’) with a major coal mining group in China, establishing a beach-head for entry into the country’s coal mining communications and tracking equipment market. Active Control estimates the mine communications and tracking market at $3 billion in China.

Under the MOU, Active Control will form an exclusive joint venture partnership with the Chinese group to market and sell ActiveMineTM, the company’s two-way wireless voice communications, tracking and data system. A formal agreement is to be negotiated within 90 days.

The new venture will target China’s 2,500 large coal mines and over 20,000 smaller, privately-owned mines.

“China’s massive underground coal mining sector represents the largest market opportunity in the world for our company,” said Steve Barrett, President and CEO, Active Control. “By working in partnership with a large and long-established mining group, we are well-positioned to gain the full potential of this opportunity.”

The joint venture will establish a local management team in China, and will leverage best practices pioneered by ACT in its US ActiveMine business.

ACT will fund and install a demonstration site as both a sales tool and for government review and certification. Equipment used at the site will be purchased by the Chinese partner at the conclusion of the demonstration. The Chinese group will assist ACT in its application to have ActiveMine certified as intrinsically safe by China’s mine safety board.

The joint venture relationship was facilitated by Peiwei Ni, the newest member of ACT’s board of directors. Mr. Ni, a native of Beijing, is bilingual / bi-cultural and has strong links to business and government in China including key relationships in China’s coal industry and Ministry of Commerce.

“The joint venture demonstrates the value that Mr. Ni provides Active Control through his knowledge of China’s coal mining sector and its key players,” Barrett said. “This gives our company a huge advantage at a time when China is moving rapidly to improve safety in its coal mines.” China, which has by far the largest number of coal mines in the world, has launched aggressive programs to improve coal mine safety. In 2005, the Chinese State Administration of Work Safety mandated US$6.3 billion in spending to enhance safety at all state-owned mines, and the government has extended regulations and enforcement to more coal mining operations.

About ActiveMine

ActiveMine’s communications, data and tracking system enables monitoring of production, personnel and equipment in all types of surface and underground mining environments, including coal and base metal mines. The system is designed to:

• Operate on a 100 percent wireless Wi-Fi network backbone.
• Be less susceptible to water and mechanical damage of all sorts, including rock fall.
• Use open-standards technology.
• Comply with relevant U.S. state and federal regulations, including MINER Act requirements for wireless systems as established in MSHA policies.
• Provide four-day intrinsically safe battery back-up and power supply.
• Provide a wireless communications and data network above-ground to extend underground networks.