Warnex Inc.

Warnex Inc.

May 29, 2006 16:01 ET

Warnex announces dispute with Procrea Cliniques

LAVAL, QC, May 29 - Warnex Inc. (TSX:WNX) today announced that it
has been advised by Groupe OPMedic Inc. ("OPMedic") that its division Procrea
Cliniques will offer a prenatal test which will compete with Warnex's
Prenatest® prenatal screening test and that it will perform in-house the
related analysis of the blood samples, as of June 2006.

In June 2004, concurrently with the purchase by Warnex of Adaltis Inc.'s
clinical laboratory, Warnex entered into a 5-year contract with OPMedic
granting Warnex the exclusivity for the analysis of blood samples drawn for
prenatal testing. Warnex considers that the actions announced by OPMedic
constitute a breach of this contract and will take all necessary legal actions
to protect its rights. In 2005, Procrea Cliniques represented approximately
50% of Prenatest screening test revenues, or 6% of Warnex's total revenues.

"We are very disappointed in the decision made by Procrea's management,"
said Mark Busgang, President and CEO of Warnex. "For the past two years, we
have been working on developing our relationship with Procrea and we hope to
resolve this issue as soon as possible."

About Warnex

Warnex (www.warnex.ca) is a biotechnology company devoted to protecting
public health by providing advanced diagnostic products and science-based
services to the agri-food, pharmaceutical and healthcare sectors. Warnex's DNA-
based technology offers a versatile detection platform that produces accurate
results rapidly, using Real-Time PCR technology combined with unique genetic
markers and software. With a focus on pathogen detection in food, our
development pipeline also includes applications in GMO testing and meat
speciation, as well as in the detection of viruses, yeasts and moulds.
Warnex's analytical, bioanalytical, and medical laboratory service groups
offer a variety of quality control services, method development and
validation, contract R&D, bioavailability and bioequivalence studies for
clinical trials, and medical laboratory testing.

Warnex is a trademark and Prenatest is a registered trademark of Warnex
Inc., Laval, Quebec.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained
in this news release are forward-looking and are subject to numerous risks and
uncertainties, known and unknown. For information identifying known risks and
uncertainties, relating to the early commercialization of Warnex products,
intellectual property and licensing, R&D of new Warnex products, manufacturing
and laboratory facilities, suppliers, key employees, key customers, financial
resources and credit risk, government regulations, foreign currency risk and
volatility of share price, and other important factors that could cause actual
results to differ materially from those anticipated in the forward-looking
statements, please refer to the heading Risks and Uncertainties in the
Management's Discussion and Analysis for the first quarter ended March 31,
2006, which can be found at www.sedar.com. Consequently, actual results may
differ materially from the anticipated results expressed in these forward-
looking statements.

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