Warnex Inc.

Warnex Inc.

October 24, 2006 11:23 ET

Warnex obtains $4 million financing

LAVAL, QC, Oct. 24 - THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Warnex Inc. ("Warnex")(TSX:WNX) today
announced that it has obtained a global financing of CDN$4 million, including
the issuance of an unsecured debenture of $3 million and the increase of its
operating line of credit by $1 million.

Warnex issued a non-convertible unsecured debenture, bearing interest of
12% per year, in the amount of $3,000,000 to SIPAR Inc. The debenture matures
in June 2008 with capital and interest payable quarterly starting April 2,
2007. The investor has also received 2,000,000 warrants, each warrant allowing
the purchase of one common share at a price of $0.75 per share, for a period
of 60 months following the date of closing. The debenture, warrants, and
underlying shares are subject to a statutory hold period of 4 months from the
date of issue.

In addition, the National Bank of Canada's Health Group has authorized
the increase of Warnex's operating line of credit from $1 million to $2
million, subject to the registration of related securities.

The proceeds of this financing will be used for general working capital
purposes.

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.

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 second
quarter ended June 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.

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.

Contact Information