Warnex Inc.

Warnex Inc.

December 08, 2005 09:36 ET

Warnex completes $3.9 million private placement


Warnex Inc. (TSX:WNX) is pleased to advise
that it has completed its previously-announced private placement of 2,996,975
common shares at a price of $1.30 per share, for gross proceeds to Warnex of

The placement was made through a syndicate of underwriters led by GMP
Securities L.P. and including Fraser Mackenzie Ltd. and Loewen, Ondaatje,
McCutcheon Ltd.

Warnex has obtained an advance income tax ruling from Revenu Québec
confirming that its common shares qualify under the SME Growth Stock Plan
("régime Actions-croissance PME"). The common shares issued in the private
placement therefore constitute eligible shares for purposes of the SME Growth
Stock Plan, providing a 100% deduction for Quebec income tax purposes to
eligible investors, provided certain conditions are met.

Warnex will use the net proceeds from the private placement for the
continued strategic development of its business and for working capital
purposes. As a result of the private placement, there are 51,973,875 common
shares of Warnex issued and outstanding.

About Warnex

Warnex (www.warnex.ca) is a publicly traded (TSX: WNX) Canadian
biotechnology company devoted to protecting public health by providing
advanced diagnostic and quality control products and services to the
pharmaceutical, agri-food, and healthcare sectors. Warnex's genomics-based
technology offers a versatile detection platform that produces accurate
results rapidly, using Real-Time PCR technology combined with unique genetic
markers and software. Applications range from pathogen detection in foods to
GMO testing. Our development pipeline includes applications in the detection
of viruses, toxins, yeasts, and fungi, as well as meat speciation and
bioterrorism. Warnex's profitable and growing analytical, bioanalytical, and
clinical 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 of Warnex Inc.


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 third quarter ended on September 30, 2005, which can be found at
www.sedar.com. Consequently, actual results may differ materially from the
anticipated results expressed in these forward-looking statements.

This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.

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