November 17, 2006 09:27 ET

IBEX Response to Unsolicited Offer from Miraculins Inc.

MONTREAL, QUEBEC--(CCNMatthews - Nov. 17, 2006) - IBEX Technologies Inc. (TSX:IBT) announces that Miraculins Inc. of Winnipeg, Manitoba (TSX VENTURE:MOM) has issued a press release announcing its intention to make an unsolicited offer for all of IBEX's outstanding common shares. According to the press release, Miraculins proposes that the two companies be combined, with current IBEX shareholders owning 23% of the combined company. IBEX shareholders would receive one share of Miraculins (as the combined company) for every five shares of IBEX that they currently own.

The Board of Directors of IBEX will appoint financial advisors when the Miraculins circular is available and will thereafter make a recommendation to the IBEX shareholders.

The Board of Directors of IBEX notes initially that the value attributed to IBEX's shares as announced by Miraculins is approximately equal to the value of IBEX's cash, cash equivalents and marketable securities and gives no value to IBEX's cancer diagnostic technology, or to approximately $2 million in sales from IBEX's growing specialty enzyme and arthritis kit business. The IBEX Board notes that as at August 31, 2006, the date of its most recent financial statements, Miraculins had only $1.6 million in cash and equivalents while IBEX reported cash and equivalents of $4.5 million at July 31, 2006.

The IBEX Board also notes that Miraculins' shares have declined in price by more than 50% over the past six months, from approximately $1.80 in December 2005 to their current price of $0.85, and that there is negligible trading volume.

IBEX advises its shareholders not to deposit any common shares of IBEX to the Miraculins offer and to not take any action concerning the offer until shareholders have received further communication from the Board of Directors of IBEX.

The IBEX Board also announces that it has entered into a non-binding letter of intent in connection with a proposed acquisition by IBEX of a private company based in the Montreal region, and expects to sign a definitive agreement before the end of 2006. If the acquisition is concluded, it will substantially increase IBEX's size. The potential acquisition by IBEX results from IBEX's previously-announced strategic initiatives to raise shareholder value. The object of the proposed acquisition is to turn IBEX into a specialty pharmaceutical company with rapidly growing sales. No assurance can be given by IBEX at this time that the proposed acquisition will be completed.

About IBEX Technologies Inc.

IBEX is focused on the development of diagnostics for the management of cancer and arthritis. The Company's cancer program is based on a novel family of genes known as kallikreins, IBEX is developing kallikrein-based diagnostics for screening and monitoring cancer. The Company's arthritis program is based on a series of biomarkers of cartilage degradation and synthesis.

IBEX markets a number of products, including its high-purity proprietary enzymes (heparinases and chondroitinases), as well as a series of arthritis and kallikrein-based assays. Heparinase I IBEX is used in many leading hemostasis monitoring devices, while IBEX arthritis assays are used by leading pharmaceutical companies for research purposes. For more information, please visit the Company'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
    The Equicom Group Inc.
    Donna Lavoie
    Investor Relations