December 16, 2002 - ZTEST ANNOUNCES DEBT FINANCINGS

NORTH YORK, December 16, 2002 - ZTEST Electronics Inc. ("ZTEST" or the "Corporation") (TSXVE - "YZT") wishes to announce that it is offering up to $100,000 in Convertible Debentures to arm's-length and non-arm's-length parties. The Convertible Debentures will bear interest at the rate of 8 % per annum payable monthly in arrears and will have a two (2) year term. Each Convertible Debenture will be convertible into common shares of ZTEST on the basis of one (1) common share for each $0.05 of principal amount converted. In addition, purchasers of the Convertible Debentures will receive one (1) warrant for every $0.05 of Convertible Debenture purchased with each warrant exercisable at a price of $0.10 until the first anniversary of the issuance of the Convertible Debentures.

The terms of this financing are subject to the approval of the TSX Venture Exchange.

The funds from these financings will be used to provide working capital for ZTEST's wholly-owned subsidiary, Permatech Electronics Corporation ("Permatech").

About Permatech Electronics Corp.

Permatech Electronics Corp., a wholly owned subsidiary of ZTEST Electronics Inc. (TSXVE:YZT), is an ISO 9002 certified Electronic Manufacturing Services (EMS) provider founded in 1982. Permatech offering includes Materials Management, Printed Circuit Board (PCB) Assembly, Testing and Design services. Permatech operates from a 20,000 square foot facility in North York, Ontario, Canada. The company serves customers in the Medical, Power, Computer, Telecommunication, Wireless, Industrial and Consumer Electronics markets requiring high quality, quick-turn, small and medium size production runs.

For more information contact Investor Relations:
Flora Wood and Philip Williams
(416) 366-0012
email: info@ztest.com

The issued and outstanding capital of ZTEST is 31,772,210 common shares

The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release.