Cape Systems Group, Inc. SEC Registration Revoked; Company Plans to File Registration Statement

PISCATAWAY, N.J., Nov. 18, 2010 /PRNewswire/ -- (FORMERLY PINK SHEETS: CYSG) CAPE Systems Group, Inc., is a leading provider of software technology for packaging design, pallet optimization, RFID Asset Tracking, inventory and warehouse management, supply chain execution and order fulfillment.

On November 10, 2010 the Securities and Exchange Commission (the "Commission") revoked the registration of the Company's registered common shares. The revocation was based on the Company's failure to file required periodic reports with the Commission in violation of the Securities Exchange Act of 1934 (the "Exchange Act"). The last report filed by the Company, which contained audited financial records, was for the period ending December 31, 2006. The Company has continued however to release its unaudited financial results to the public through press releases.

The primary reason for not having filed the required reports relates to the effect which the economic downturn has had on the Company's business and liquidity. The Company has not had the resources to enable its certified public accountants to perform the required audits of its financial records. The Company is working on a resolution to that issue.

Chief Executive Officer Nic Toms commented, "Unfortunately, while the Company is experiencing a pickup in orders and profitability after the severe downturn, the revocation of the Company's common stock registration was nevertheless unavoidable. We want our shareholders to be aware that the Company is exploring strategic alternatives with the objective of expanding our business and increasing shareholder value, and to enable the re-registration of the shares."

The Company plans to file in the first calendar quarter of 2011 a new Registration Statement with the Commission, which the Company anticipates would be effective approximately sixty days from filing after which trading in the Company's shares will resume.

About CAPE Systems

CAPE Systems is an international provider of supply chain management technologies. CAPE Systems offers a comprehensive range of software systems and tools, from packaging and pallet optimization software, RFID asset tracking, to integrated warehouse and inventory management solutions, pick-to-light systems, and transportation management systems for enterprise wide and collaborative supply chain optimization. For more information about CAPE visit: www.capesystems.com.

Safe Harbor

Statements about the company's future expectations, including future revenue and earnings and all other statements in this press release, other than historical facts, are "forward-looking" statements and are made pursuant to safe harbor provisions of the Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time. The company's actual results could differ materially from expected results. In reflecting subsequent events or circumstances, the company undertakes no obligation to update forward- looking statements.

SOURCE CAPE Systems Group, Inc.