May 07, 2007 17:01 ET

IBEX Terminates Proposed Acquisition of Garvinci Inc. Cancels Special Shareholders' Meeting

MONTREAL, QUEBEC--(CCNMatthews - May 7, 2007) - IBEX Technologies Inc. (TSX:IBT) announced today that the Company has terminated its previously-announced proposed acquisition of Garvinci Inc. as a result of new information concerning Garvinci's business made known to IBEX by Garvinci, among other matters.

IBEX has also cancelled its May 28, 2007 special meeting of shareholders. The meeting had been called primarily for the purpose of approving the proposed acquisition of Garvinci Inc.

As a consequence of the termination of the proposed acquisition, IBEX plans to restructure its business with the goal of achieving earnings break-even by the quarter ending October 31, 2007. IBEX will announce the details of its restructuring as soon as the plan is confirmed by IBEX's Board of Directors.

Paul Baehr, IBEX President and CEO stated: "We are disappointed by the necessity to terminate the agreement with Garvinci. We will continue to pursue other acquisition or merger opportunities in addition to restructuring the company, all in order to achieve value for shareholders."

During the course of the transaction, IBEX advanced $1 million to Garvinci Inc. by way of secured loan. IBEX will immediately take all appropriate measures to recover these funds. However, there can be no assurance that IBEX will be able to recover some or all of the funds, or that it will be able to achieve its objective of earnings break-even by the quarter ending October 31, 2007.

About IBEX

IBEX currently markets a series of arthritis assays which are widely used in pharmaceutical research. These assays are based on the discovery of a number of specific molecular biomarkers associated with collagen synthesis and degradation.

The Company also markets a series of proprietary enzymes (heparinases and chondroitinases) for research use, as well Heparinase I which is used in many leading hemostasis monitoring devices.

For more information, please visit the Company's web site at www.ibex.ca

Safe Harbor 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
    LaVoie Group
    Donna LaVoie
    978-745-4200 X103