Warnex Inc.

Warnex Inc.

December 11, 2006 09:00 ET

Warnex explores strategic alternatives for its pathogen detection business

LAVAL, QC, Dec. 11 - Warnex Inc. (TSX:WNX) today announced that it
has decided to explore strategic alternatives for its pathogen detection
business including partnerships, joint ventures or the sale of this business,
in order to enhance shareholder value. The Company has mandated a U.S.-based
investment banking firm, Kirchner & Company, Inc., to act as its agent in this
process.

"We take considerable pride in the technology we have developed and
believe that our system is the best food safety technology available. Ensuring
the pathogen detection system achieves its full commercial potential, however,
ultimately requires a wider distribution platform than we can provide.
Therefore, in order to ensure its long-term success, we have decided to
explore strategic alternatives for this part of our business," said Mark
Busgang, President and CEO of Warnex. "Looking forward, our goal is to be
focused on our laboratory services divisions. Our analytical, bioanalytical
and medical laboratory divisions have always been profitable and have
generated a strong 5-year compound annual revenue growth rate of 43%. With two
acquisitions completed in 2006, we are looking forward to strong organic
growth as well as additional acquisitions in the profitable laboratory
services sector."

The Warnex™ Rapid Pathogen Detection System, based on real-time PCR
technology, offers a versatile detection and quantification platform that
provides accurate results within 3 to 48 hours, a significant improvement over
traditional microbiology tests that require 5 to 7 days. This business, which
is based on a recurring revenue model, has realized over 60% growth in reagent
revenues in the last year. With three European distributors, an initial
customer base in North America and a strategic alliance with Eppendorf, a
global leader in the laboratory equipment market, this operation provides an
attractive business opportunity.

Warnex provides no assurance that the initiation of a process to explore
strategic alternatives will result in a transaction. No decision has been made
to enter into any transaction at this time. The Company does not currently
intend to disclose developments with respect to the exploration of strategic
alternatives unless and until its Board of Directors has approved a specific
transaction.

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 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, integration of acquisitions, manufacturing and
laboratory facilities, suppliers, key employees, key customers and business
partners, 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 September 30, 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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