Warnex Inc.

Warnex Inc.

July 18, 2006 15:41 ET

Warnex poised to double analytical services business unit

LAVAL, QC, July 18 - Warnex Inc. (TSX:WNX) today announced that it
has entered into an agreement in principle for the acquisition of the MDS
Pharma Services pharmaceutics business located within its Blainville, Quebec
facility. The Blainville pharmaceutics operations reported $6.7 million in
annual revenue in its last fiscal year.

"This significant acquisition reflects our strategy to grow both
organically and through acquisitions," said Mark Busgang, President and CEO of
Warnex. "MDS' pharmaceutics operation has an excellent reputation for quality
and customer service, which will enhance Warnex's leadership in the laboratory
market in the province of Quebec."

MDS Pharma Services' pharmaceutics laboratory offers pharmaceutical
analysis, traditional chemistry, microbiology, method development and
validation, technology transfer, and stability studies. The Blainville
operations occupy 28,000 square feet and are fully cGMP compliant.

The transaction is subject to usual conditions, including the conclusion
of all related agreements and the obtaining of all requisite corporate and
other authorizations, and is expected to close on or prior to August 31, 2006.

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, 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. Additional risks and uncertainties exist regarding Warnex's
ability to successfully integrate the analytical laboratories division of MDS
within its own operations. Consequently, actual results may differ materially
from the anticipated results expressed in these forward-looking statements.

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