July 18, 2005 08:00 ET

IBEX Completes Third Anniversary Payment for Arthritis Biomarkers.

MONTREAL, QUEBEC--(CCNMatthews - July 18, 2005) - IBEX Technologies Inc. (TSX:IBT) today announced that it has completed the third anniversary payment to former HDM Diagnostics & Imaging Inc. ("HDM") shareholders to retain the exclusive rights to its portfolio of arthritis biomarkers. In fulfilling the third year anniversary payment, IBEX issued 1,169,625 common shares, valued at $296,500 (as at July 15, 2005), and made a cash payment of $103,500. After giving effect to the third-year payment to former HDM shareholders, there are now 23,070,058 common shares of IBEX issued and outstanding.

IBEX's osteoarthritis and rheumatoid arthritis biomarkers involve certain molecules in blood that are a by-product of collagen degradation and synthesis. IBEX's arthritis biomarkers are currently being used by researchers, including five of the world's leading pharmaceutical companies, to more effectively measure the efficacy of new arthritis treatments and to identify patients that are more likely to respond to potential therapies or that are more likely to develop progressive diseases. IBEX currently sells four arthritis assays to the research community: CS-846, CPII, C2C and C1-2C. Sales of IBEX's arthritis assays for the third quarter of fiscal 2005 were up 54% versus the third quarter of fiscal 2004.

IBEX recently completed the development of a next generation CS-846 assay for the measurement of fetal aggrecan, a biomarker that is present in adults with early osteoarthritis or rheumatoid arthritis. This new assay, FA-846® is expected to have significant utility within the research community in the conduct of animal studies and in human clinical studies. IBEX plans to release next generation versions of its CPII and C2C arthritis assays in the fourth quarter of calendar 2005. CPII measures the synthesis of type II collagen and is initially targeted for diagnosis of early rheumatoid arthritis. C2C is an assay for the measurement of increased collagen degradation and is initially targeted for osteoarthritis applications.

IBEX acquired the exclusive rights to its portfolio of novel arthritis biomarkers through its acquisition of privately-held HDM in July 2002. Under terms of the HDM acquisition agreement, IBEX made an initial payment of $500,000 and issuance of two million IBEX common shares valued at $922,000 (as of the date of the transaction) to HDM shareholders. IBEX also agreed to pay anniversary payments of $400,000 per annum, either in cash or in common shares of IBEX, or a combination thereof, in each of the first three years following the acquisition to maintain the rights to the arthritis biomarkers. Further, IBEX agreed to a milestone payment of $800,000 to former HDM shareholders upon cumulative net sales of IBEX's Arthritis program reaching $2.0 million. The milestone payment was recently amended and will be replaced by two $200,000 payments; the first to take place on July 15, 2006, and the second to take place on July 15, 2007.

For the first anniversary payment, IBEX issued 475,000 common shares, valued at $296,210 (as at July 15, 2003) and made a $103,790 cash payment. For the second anniversary payment, IBEX issued 688,000 common shares, valued at $296,459 (as at July 15, 2004) and made a $103,541 cash payment.

About IBEX Technologies Inc.

IBEX Technologies Inc. (TSX:IBT) is a Montreal-based biopharmaceutical company focused on the development of therapeutics and diagnostics for the management of cancer and arthritis. For more information, please visit the IBEX's Web site at www.ibex.ca.

Safe Harbour Statement

All of the statements contained in this news release, other than statements of fact that are independently verifiable at the date hereof, are forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown. Some examples of known risks are: the impact of general economic conditions, general conditions in the pharmaceutical industry, changes in the regulatory environment in the jurisdictions in which IBEX does business, stock market volatility, fluctuations in costs, and changes to the competitive environment due to consolidation or otherwise. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements. IBEX disclaims any intention or obligation to update these statements.

Contact Information

  • IBEX Technologies Inc.
    Paul Baehr
    President & CEO
    (514) 344 4004
    The Equicom Group Inc.
    Bruce Wigle
    Investor Relations
    (416) 815-0700 ext. 228