NEWS RELEASE
DEC 8 2005

Tantalus Completes $9.4 Million Private Equity Financing
Investment to Exploit Early Market Success

Vancouver, BC Canada – December 8, 2005 – Tantalus Systems Corp., a developer, manufacturer, and marketer of wireless data communications networks for utilities, announces the completion of a CAD $9.4 million private equity financing. The financing syndicate includes Altira Group LLC, ARC Energy Venture Fund 4, British Columbia Discovery Fund (VCC) Inc., and Sanders Morris Harris Group. Total investment in Tantalus by this syndicate now exceeds CAD $25 million.

The continued financial support of Tantalus’ shareholders represents a strong endorsement for the company and its technology. The capital will be used to exploit the early market success of TUNet® – the Tantalus Utility Network – a wireless communications network that enables electric, water, and gas utilities to precisely monitor usage, remotely remedy problems such as outages, optimize system performance, and gather the real-time data needed for progressive energy conservation initiatives such as load control and demand side management.

Tantalus posted key sales wins in 2005, including several projects in Ontario (which is leading North America in the adoption of smart metering technology) as well as numerous deployments in the United States. TUNet also earned three high profile, international awards in 2005. The Energy Planning Network awarded Anaheim Public Utilities its Best Demand Response Award for a pilot incorporating TUNet, the Wireless Innovation Contest named TUNet the Top Wireless Communication Solution for the Public Sector Applications, and the United Telecom Council awarded TUNet the Best Wireless Equipment product award.

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About Altira
Altira is a venture capital firm focused on energy technology. Based in Denver, the firm is investing from its fourth fund. Altira looks for promising technology companies in the areas of oil and gas, energy information technology, electric power generation, transmission and distribution, and renewable energy. For more information about Altira visit www.altiragroup.com.

About ARC Financial Corporation
ARC Financial is a Calgary based, private, investment management firm focused exclusively on the energy sector. ARC has been an active investor in early stage energy companies since 1990 and launched its first private equity fund in 1997. ARC has made investments of over $880 million in over 125 early stage companies in various sectors of the energy industry. For more information, please visit www.arcfinancial.com.

About British Columbia Discovery Fund (VCC) Inc.
British Columbia Discovery Fund (VCC) Inc., managed by Discovery Capital Corporation, was established to make venture capital investments in a portfolio of businesses in British Columbia focusing on all of B.C.'s top internationally recognized technology clusters; information technology, communications, health and life sciences, and energy and environmental technologies. Established in 2002, the fund is the largest SBVCA registered venture capital corporation making diversified investments in British Columbia. For more information, please visit www.discoverycapital.com.

About Sanders Morris Harris Group
Sanders Morris Harris Group is a diversified financial services holding company based in Houston, Texas, and is the largest investment banking firm headquartered in the Southwest United States. Its operating entities are Sanders Morris Harris, Charlotte Capital, Kissinger Financial Services, Pinnacle Trust Co., Salient Partners, SMH Private Equity Funds and SMH Capital Advisors. Additional information is available at www.smhgroup.com and www.smhpeg.com.

About Tantalus
Founded in 1989, Tantalus designs, manufactures, and markets two-way, real-time data communications networks to monitor and control electric, gas, and water utilities. The Tantalus Utility Network is a single, multi-purpose communications backbone specifically designed to help utilities extend the capacity of their distribution infrastructure. Tantalus’ long-range wireless networks unite a utility’s applications, making advanced metering, outage management, power quality monitoring, load management, and distribution automation cost-effective and practical throughout both urban and rural service areas. For more information, please visit www.tantalus.com