January 24, 2005 - ZTEST ANNOUNCES COMPLETION OF DEBENTURE FINANCINGS

NORTH YORK, January 24, 2005 - ZTEST Electronics Inc. ("ZTEST" or the "Corporation") (TSXVE -"ZTE") wishes to announce that further to its press release dated September 17, 2004, ZTEST has completed the placement of a $135,000 in Convertible Debenture to an arm's-length party. The Debenture will bear interest at the rate of 10 % per annum payable monthly in arrears and will come due on September 9, 2006. The Debenture is convertible into common shares of ZTEST on the basis of one (1) common share for each $0.10 of principal amount converted. In addition, the holder of the Debenture received 1,350,000 warrants to acquire common shares at $0.10 per share until August 30, 2006. The common shares will be legended and restricted from trading until May 17, 2005.

ZTEST also wishes to announce that further to its press release dated November 25, 2004, ZTEST has completed the placement of a total of $195,000 in Convertible Debenture to two arm's-length parties. The Debentures will bear interest at the rate of 8 % per annum payable monthly in arrears and will come due on January 24, 2007. The Debentures are convertible into units of ZTEST on the basis of one (1) unit for each $0.06 of principal amount converted. Each unit consists of one (1) common share and one warrant entitling the holder to acquire an additional common share at a price of $0.10 until January 24, 2007. The common shares will be legended and restricted from trading until May 24, 2005.

For more information contact: 

Ted Drzazga, CEO 
(416) 297-5155 
email: info@ztest.com 

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