Benthos and Coda Octopus to Jointly Develop Stingray ROV and Echoscope II System for Port and Harbor Security

NORTH SALEM, N.Y.--Oct. 4, 2004--CODA OCTOPUS GROUP, INC. (Pink Sheets: CDOC) and Benthos, Inc. announced today that they have signed a letter of intent to enter into a joint development and marketing agreement (JD&M agreement) to develop, manufacture, market and sell an underwater inspection class remotely operated vehicle (ROV) that integrates the Stingray ROV and the Echoscope II. The proposed product will be targeted at the Port and Harbor Security market.

The Benthos Stingray ROV is an inspection class ROV designed to be easily configured for numerous tasks. Stingray is a vehicle that can be deployed and recovered by one person from any stable platform. With its cameras, lights and ancillary sensors, the Stingray provides the perfect tool for underwater video inspection.

The Coda Octopus Echoscope II is a unique, patented technology delivering forward looking, high resolution, 3D images underwater in real time. Echoscope employs a highly innovative multi-element transducer design, high speed digital signal processing, advanced sonar beam forming techniques and intuitive image display software.

The Stingray ROV and Echoscope II package will provide rapid wide area collection of high-resolution 3D images. Once a suspicious object is identified using the 3D images provided by the Echoscope II, the Stingray ROV video camera could then be used for real-time close-up inspection and classification of the object. This combined system will be easy to operate and provide a fully integrated solution for underwater port and harbor security missions, including ship hull inspections, pier surveys and general harbor security monitoring.

The development of the integrated Stingray ROV and Echoscope II will provide a unique inspection vehicle with high maneuverability and high-resolution detection capabilities, fulfilling a Port and Harbor Security need that has been clearly expressed by numerous agencies such as navies, coast guards, port authorities, and customs services.

Safe Harbor Statement: Except for historical information, the matters set forth herein, which are forward-looking statements, involve certain risks and uncertainties that could cause actual results to differ. Potential risks and uncertainties include, but are not limited to, perceived or actual benefits and market acceptance of CodaOctopus' planned products and their level of sales, the competitive environment and successful technical and economic implementation.