July 17, 2001 - ZTEST ANNOUNCES PRIVATE PLACEMENT

ZTEST Electronics Inc., YZT - CDNX, ("ZTEST or the Corporation") wishes to announce that it has entered into negotiations for a private placement in the amount of $150,000 with an arm's-length party. The private placee will subscribe for 1,333,333 Units of the Corporation. Each Unit of the Corporation consists of one (1) common share of the Corporation priced at $0.1125 per share and seven-tenths of a share purchase warrant with each full warrant entitling the holder to acquire one (1) additional common share of the Corporation at a price of $0.15 for two years from closing. The outstanding capital of ZTEST including the shares issued pursuant to this private placement will be 24,071,167 common shares.

The funds received from this private placement will be used to reduce the liabilities of the Corporation and for working capital purposes.

ZTEST offers Strategic Partner services in electronic design, development and manufacturing capabilities to emerging high tech companies in return for long-term manufacturing contracts, fees for services and equity positions. 

For further information, contact: 

Mr. Ted Drzazga 
President & CEO ZTEST Electronics Inc. 
Tel. (905) 238-3543 ext. 230 
or visit our web site at http://www.ztest.com. 

This news release may include statements that constitute forward-looking statements. Please be cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of any number of factors, including risk factors contained in the Company's disclosure documents 

CDNX HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS OF THIS PRESS RELEASE.