CTI Announces Sentry Debt Converted To Equity.

Business Editors

BURNABY, British Columbia--(BUSINESS WIRE)--June 5, 2002

CTI Diversified Holdings, Inc.(OTC Bulletin Board:CDHI)("CTI") announced today that B.C. Advanced Systems Institute ("ASI") has elected to convert its loans made to Sentry Telecom Systems Inc., ("Sentry") into common shares of CTI. In 2000, ASI provided $270,000 Canadian in support to Sentry, a subsidiary of CTI, under its Product Development Fund. ASI's support came in the form of a loan secured by a first charge on the intellectual property of Sentry. On May 1, 2002, the $270,000 Canadian Loan was converted into 592,826 common shares of CTI.

In confirming the announcement, Mr. Donald Farnell, President and CEO of CTI, stated, "The decision by ASI to convert its loan into equity represents a strong vote of confidence in the strategic direction being implemented by CTI through its acquisition of Sentry." "The persistence and focus of the combined Sentry/CTI management team, combined with the strength of Sentry's product prospects, were factors in our decision to convert our debt to equity," commented Gordon Bird, Investment Programs Manager of ASI.

Sentry, located in Burnaby, BC Canada, is a subsidiary of CTI (OTCBB:CDHI). Sentry is a manufacturer of secure management products for converged voice and data networks. Sentry has developed the Phonewall(TM) Telecommunications Firewall - a unique patented product for establishing, monitoring, enforcing and reporting on security policies for Voice, Fax and Data traffic in enterprises. Sentry's products empower enterprises with control over communications security policies and provide them with the visibility, reporting and enforcement needed to make the policies effective. More information about Sentry and their parent company CTI can be found at www.sentrytelecom.com and www.ctidiversified.com.

Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. Potential factors could cause actual results to differ materially from those expressed or implied by such statements. Information on the potential factors that could affect the Company's actual results of operations is included in its filings with the Securities and Exchange Commission. These risks include those listed in its filings on SEC Form 10-K, and uncertainties related to the company's ability to complete the development of its products in accordance with customers' specifications, uncertainties related to the company's ability to assemble and test its products once development has been completed, uncertainty as to the market demand for the company's products, risks related to the retention of key employees, uncertainty related to the company's ability to defend any potential intellectual property litigation, uncertainties related to potential product liability risks, and uncertainty as CTI's ability to manage rapid growth. These may be further discussed in periodic reports and registration statements to be filed by the Company from time to time with the Securities and Exchange Commission in the future. CTI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The Company's shares trade on the OTCBB under the symbol "CDHI".

CTI Diversified Holdings Inc. Per: Donald E. Farnell, President & CEO.