November 5, 2002

News Release: Q3 Financial Results: Revenues Increase By 112%

Delta Systems, Inc. ('Delta'or the 'Company') (DLT.S TSX-V), the automation and motion control company, announced its financial results for the third quarter ended September 30, 2002. Results are reported in U.S. dollars under U.S. Generally Accepted Accounting Principles (U.S. GAAP).
Net revenues for the three months ended September 30, 2002 were $3.36 million, compared to $1.59 million for the same period last year representing an increase of 112%. Gross profit for the quarter ended September 30, 2002 was $1.30 million or 38.6% of revenue, compared to $0.62 million or 38.8% of revenue for the third quarter of 2001. Operating expenses for the quarter ended September 30, 2002 were $1.49 million compared to operating expenses of $1.08 million in the third quarter of 2001. The Company's net loss for the quarter ended September 30, 2002 was $0.35 million compared to a net loss of $0.53 million in the third quarter of 2001. Earnings Before Interest & Taxes ('EBITDA') for the third quarter of 2002 was a loss of $196,500 versus a loss of $468,456 in the same quarter of 2001.

Third Quarter Highlights:

* In spite of a continued difficult capital equipment market in North America, Delta's revenues increased by 112% versus the third quarter of 2001.

* Third quarter 2002 revenues declined 6% from the second quarter of 2002 due to seasonally slow order bookings in the early summer.

* Order bookings for the third quarter of 2002 were approximately $3.5 million, which represents 20% growth versus bookings of approximately $2.9 million in the second quarter of 2002. The increase in bookings was primarily due to growth in orders for control software and hardware.

* For the quarter, Delta Automation Solutions Inc. ('Automation Solutions') revenue was approximately $2.6 million and Delta Controls Inc. ('Controls') revenue was $0.7 million. On a year-to-date basis Automation Solutions revenue was approximately $6.9 million and Controls revenue approximately $2.0 million.

* In the quarter, Automation Solutions received a purchase order exceeding $1 million in value for 'on-edge'product feeding and wrapping systems from a major bakery company. This is the third order that Solutions has received for 'on-edge'systems from this customer.

* In September, Delta Controls Inc. received an order exceeding $0.5 million in value for controls software and hardware after completing the development and testing of prototype application software for this customer earlier in the third quarter.

* In July, Mr. Steven J. Martin joined the Company as Vice President & General Manager of Delta Controls Inc. Prior to joining Delta, Mr. Martin was Director of Plant Systems for Tyson Foods Inc.

* Delta continued to add new customers bringing the number of new customers on a year-to-date basis to 14.

'I am pleased that, in the third quarter of 2002, Delta's revenues more than doubled versus the third quarter of 2001. While revenues decreased slightly in the seasonally slower summer period versus the second quarter of 2002, we experienced solid growth in our order bookings due to an increase in orders for controls software and hardware. This is particularly rewarding for the management team at Delta as our most important strategic objective is to aggressively grow our controls business'said Jake Bushey, President and Chief Executive Officer of Delta Systems Inc 'The addition in July of Steve Martin as Vice President & General Manager of Delta Controls Inc. has really helped to accelerate our progress in developing this business'added Mr. Bushey.

Earnings before interest, taxes, depreciation and amortization or EBITDA is used by Delta to measure its operating results. EBITDA may not be consistent with the calculation of similar measures for other companies and should not be viewed as an alternative to net income or other measures of performance calculated in accordance with generally accepted accounting principles. Similarly, EBITDA margins may not be comparable to similar measures reported by other companies.

Summary financial information - Unaudited Quarter Ended September 30


                             Three Months Ended      Nine Months Ended
                                September 30,           September 30,


                              2002        2001        2002        2001




Net Sales               $3,361,553  $1,586,672  $8,902,048  $4,681,411
Gross Profit             1,298,111     615,199   3,572,844   1,720,588
GP%                           38.6%       38.8%       40.1%       36.8%
Operating Expenses       1,494,611   1,083,655   4,353,499   3,351,952


EBITDA                    (196,500)   (468,456)   (780,655) (1,631,364)
Net Loss                  (350,517)   (533,165) (1,075,852) (1,799,603)
Basic & Diluted Net
 Loss Per Share             ($0.02)     ($0.04)     ($0.06)     ($0.14)


Weighted average
 common shares
Outstanding (basic)     17,238,819  13,765,798  16,666,207  13,200,003
Diluted                 17,238,819  13,765,798  16,666,207  13,200,003

Business Outlook

With respect to expected future financial performance, the Company continues to expect revenue for 2002 to exceed $12 million. Additionally, the Company expects revenue for the year 2003 to be in a range of $18 to $22 million and that net income for the year will be positive.

About Delta Systems

Delta Systems, Inc. provides leading edge PC based automation control solutions for manufacturing and distribution operations. Its core motion control software, SoftFlow(TM), utilizes a proprietary real-time operating system to provide automation control applications with significantly greater speed, efficiency, precision and flexibility while leveraging the benefits of an open architecture solution. Delta operates two businesses: Delta Software Inc. and Delta Automation Solutions Inc. Delta has been providing quality automation solutions since 1993, and can be found on the Web at www.delta-systems-inc.com.

No stock exchange or regulatory authority has approved or disapproved of the information contained herein. Delta's common shares have not been registered under the United States Securities Act of 1933 (the '1933 Act') and may not be offered or sold to persons in the United States or to U.S. persons, except pursuant to an applicable exemption from the registration requirements of the 1933 Act. The '.s'suffix in the trading symbol indicates that certain restrictions are imposed by Regulation S under the 1933 Act.

Certain statements contained in this press release may constitute 'forward looking statements'. When used in this press release, the words 'may,''would,''could,''will,''intend,''plan,'anticipate,''believe,''estimate,''expect,'and similar expressions, as they relate to Delta or its management are intended to identify forward-looking statements. Such statements reflect Delta's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause Delta's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including among other things, those which are discussed under the headings 'Risk Factors'and elsewhere in documents that Delta files from time to time with securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Delta does not intend, and does not assume any obligation, to update these forward looking statements.

CONTACT: TEL: (479) 619-2585 Delta Systems, Inc

Jake Bushey

President and Chief Executive Officer

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