DTI Dental Technologies Inc.
TSX VENTURE : DTI

DTI Dental Technologies Inc.

August 18, 2006 12:48 ET

DTI Dental Technologies Inc. Announces Proposed Issuance of Common Shares for Value of "In-The-Money" Stock Options in Connection With HealthpointCapital's Takeover Bid

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 18, 2006) - DTI Dental Technologies Inc. ("DTI") (TSX VENTURE:DTI) announces that further to the offer by HealthpointCapital, LLC ("Healthpoint"), through an affiliated corporation, to acquire all of the issued and outstanding common shares of DTI at $1.60 per share (the "Offer"), DTI may issue up to 392,188 common shares of DTI in connection with the potential surrender of outstanding DTI stock options for cancellation. This number of shares (at an ascribed value of $1.60 per share) is equal in value to the aggregate "in-the-money" value of outstanding DTI stock options (based on the $1.60 Offer price per share less applicable option exercise prices with the aggregate in-the-money value amounting to $627,500).

Holders of outstanding DTI stock options may, at their option, elect to either exercise their stock options in full by paying the total option exercise price to receive the applicable number of common shares of DTI or surrender their stock options for cancellation to receive the in-the-money value of their stock options in common shares of DTI. All such common shares of DTI issued in connection with outstanding stock options will be available for deposit under the Offer for takeup and payment by the offeror under the bid.

Pursuant to the requirements of the TSX Venture Exchange, any common shares of DTI issued in connection with the in-the-money value of stock options will not be included in calculating the offeror's DTI share ownership percentage for the purposes of any subsequent statutory compulsory acquisition procedures that the offeror may pursue following its takeup of and payment for shares deposited under the Offer in order to acquire shares not deposited under the Offer.

Shareholders of DTI are reminded that the Offer expires at 8:00 a.m. (Vancouver time) on Monday, August 21, 2006, unless withdrawn or extended. The Board of Directors of DTI has determined that the Offer is fair, from a financial point of view, to all shareholders of DTI and has recommended that DTI shareholders accept the Offer.

About DTI Dental Technologies Inc.

DTI is a multi-site operator of premium quality dental laboratories, with sixteen labs in seven U.S. states and three Canadian provinces. DTI's laboratories design and manufacture custom dental prosthetics including crowns, bridges and orthodontic appliances. DTI's experienced management team is committed to building shareholder value by increasing market share, revenue and cash flow through improved marketing, training, business processes and maximizing opportunities for additional growth. DTI is well positioned to capitalize on growing demand by our aging population for high quality cosmetic and restorative dental products.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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