Warnex Inc.

Warnex Inc.

July 05, 2007 17:43 ET

Warnex sells its pathogen detection business to AES Laboratoire

LAVAL, QC, July 5 - Warnex Inc. (TSX: WNX) today announced that it
has sold the assets of its pathogen detection business to AES Laboratoire, a
leading French manufacturer and supplier of laboratory equipment based in
Bruz, France. The transfer of assets was effective as of June 28, 2007.

"The sale of these assets is part of Warnex's previously announced
strategy to divest of the pathogen detection business and to focus on
laboratory services," said Mark Busgang, President and CEO of Warnex. "We
believe that we have developed a robust, state-of-the-art technology and that
this business will be an optimal fit for AES Laboratoire. Warnex will assist
in the smooth transition of clients to AES Laboratoire in order to provide
uninterrupted service to customers."

Warnex sold the assets related to its pathogen detection technology from
its subsidiaries Warnex Research Inc. and Warnex Diagnostics Inc. for the
total price of $900,000 in cash, one third to be paid on closing and one third
to be paid on each of the first and second anniversary dates of the closing.
Kirchner & Company, Inc., a U.S.-based investment banking firm, acted as agent
in this sale. As part of this agreement, Warnex will rent to AES Laboratoire
4,340 square feet of production facilities and laboratory space for a period
of up to two years.

About Warnex

Warnex (www.warnex.ca) is a life sciences company devoted to protecting
public health by providing laboratory services to the pharmaceutical and
healthcare sectors. Warnex's analytical services division provides
pharmaceutical and biotechnology companies with a variety of quality control
services, including traditional chemistry, chromatography, microbiology,
method development and validation, and stability studies. Warnex's
bioanalytical services division specializes in bioequivalence and
bioavailability studies for clinical trials. Warnex's medical laboratories
division focuses on genetic and biochemical testing for the healthcare
industry and has extensive expertise in genetic testing for human
identification, molecular diagnostics, and pharmacogenetics.

About AES Laboratoire

The AES Laboratoire Group is the first manufacturer having developed
since 1980 a full line of tools for microbiology laboratories, from sample
collection to results. It is one of the rare companies that can supply
customers with a complete range of products and services by creating,
producing and distributing tests, scientific equipments, automates and
software for the analysis of contaminants. The group has gained a proven
experience in mastering different technologies like flow- and laser
scanning-cytometry, molecular biology, culture media or metrology and serves a
number of key industries including: food & pharmaceutical manufacturing,
cosmetics & personal care products, semiconductor, water, veterinary/livestock
production, environmental and clinical. The group is growing on an
international basis through a worldwide distributor network.

About Kirchner and Company

Kirchner and Company, Inc. is a boutique investment banking firm known
for its operational approach and longstanding record of successful
transactions. The firm's partners, located throughout North America, have
extensive backgrounds running private and public companies and are experts in
identifying hidden value. The company offers small and mid-sized companies
one-stop shopping for highly-specialized corporate finance services, including
mergers and acquisition, assessments, and advisory. Clients have seamless
access to associated services through Kirchner Private Capital Group. The
Group unites specialties in investment management, transition management, and
investment banking. For more information contact: Andy Agrawal at
aagrawal@kirchnerandco.com or visit our websites: www.kirchnerandco.com and
www.kirchnerpcg.com.

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, volatility of share price, strategic alternatives for the
pathogen detection division, 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, 2007, which can be found at www.sedar.com.
Consequently, actual results may differ materially from the anticipated
results expressed in these forward-looking statements.

Contact Information

  • Mark J. Busgang, President & CEO, Warnex Inc.,
    Tel: (450) 663-6724 x.310, mbusgang@warnex.ca