Inflazyme Pharmaceuticals Ltd.

Inflazyme Pharmaceuticals Ltd.
Z-Tech (Canada) Inc.

Z-Tech (Canada) Inc.

February 20, 2008 14:30 ET

Inflazyme and Z-Tech Receive Interim Court Order for the Calling and Conduct of the Special Meetings of Securityholders to Consider the Merger Between Inflazyme and Z-Tech

VANCOUVER, BRITISH COLUMBIA and TORONTO, ONTARIO--(Marketwire - Feb. 20, 2008) -


Inflazyme Pharmaceuticals Ltd., (Inflazyme) (NEX:IZP.H) and Z-Tech (Canada) Inc., (Z-Tech), a privately-held medical device company, each announced that today they received the Interim Court Order relating to the materials to be sent to securityholders, the procedures relating to the calling and conduct of the respective special meetings and the grant of dissent rights to securityholders. The special meetings of securityholders of Inflazyme and Z-Tech are scheduled to be held on April 3, 2008.

Materials are expected to be mailed to securityholders on or about February 28, 2008 and will be made available on SEDAR at

If the merger and additional matters set out in the notice of meeting for each of the special meetings are approved by Inflazyme securityholders and Z-Tech securityholders, Inflazyme and Z-Tech expect to make an application to the Court for the Final Order to complete the merger, and the parties expect to complete the merger on or about April 8, 2008. There can be no assurance that approval will be obtained for the merger by either Inflazyme securityholders or Z-Tech securityholders, nor can there be any assurances that Final Court Approval will be obtained on the terms proposed.

Inflazyme has entered into a lock up agreement with the principal shareholders of Z-Tech under which, subject to certain exceptions, those shareholders have agreed to vote their Z-Tech securities in favour of the merger and other matters to be considered at the Z-Tech special meeting.

Inflazyme also reported today that at December 31, 2007 it had approximately $4.8 million in cash and cash equivalents and approximately $1.4 million in accounts payable and accrued liabilities.

The TSX Venture Exchange (NEX) does not accept responsibility for the adequacy or accuracy of this release.

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. Securities may not be offered or sold in the United States absent registration in the United States or the availability of an exemption from such registration.

About Inflazyme

Inflazyme Pharmaceuticals is a biopharmaceutical company that developed products in respiratory and inflammatory diseases. Further information on the Company may be obtained from its website at or on SEDAR at

On November 19, 2007 Inflazyme announced that it had completed the sale of substantially all of its research and development assets to Biolipox AB, a Swedish biopharmaceutical Company. As a result of the sale, Inflazyme's assets consisted primarily of cash and potential future payments from Biolipox.

About Z-Tech

Z-Tech is a development-stage company with a patented methodology and product for the early detection of breast cancer. Z-Tech's methodology and product, the Azura BreastScan™ System, initially targets the breast cancer screening market aged 40-50, where screening film mammography has limited ability to accurately detect breast cancer. The Azura BreastScan™ System provides immediate test results and is non-invasive, radiation-free and painless.

This news release contains certain "forward-looking statements" and "forward-looking information" which may include but is not limited to statements in respect of Inflazyme's and Z-Tech's future financial position or operations. Words like "believe", "intend", "may", "expect", "anticipate", "plan", "should" and other similar expressions are forward-looking statements that involve a number of risks and uncertainties. By their nature, forward-looking statements involve numerous factors, assumptions and estimates. Some but not all of the factors that could cause actual results to differ materially from those projected in our forward-looking statements include among others:

- the potential merger of Inflazyme and Z-Tech by way of plan of arrangement;

- the value of Inflazyme and the amount of any closing adjustments;

- the per share value of a Z-Tech security in connection with a proposed private placement;

- the successful completion of the proposed private placement;

- the current cash available to each of Inflazyme and Z-Tech may not be sufficient to enable either of them to continue operating if the arrangement is not completed;

- the potential effect of the trading price of Z-Tech Medical shares post closing due to volume of trading;

- the arrangement may result in tax consequences to and resale restrictions for certain securityholders;

- the exchange ratio for Inflazyme shares cannot be ascertained until shortly before the closing date;

- Inflazyme may have to pay a break fee if the arrangement is not completed;

- the approval of the arrangement by each of Inflazyme's and Z-Tech's securityholders at the Special Meetings of Inflazyme securityholders and Z-Tech securityholders to consider the arrangement, currently scheduled for April 3, 2008;

- any necessary approvals of the Canadian regulatory authorities;

- the ability of Inflazyme and Z-Tech to satisfy all of the closing conditions to complete the arrangement;

- the dilutive effect of the private placement;

- Z-Tech's operating loss history;

- Z-Tech's tax filings maybe re-assessed;

- Z-Tech's (and assuming the approval of the arrangement, Z-Tech Medical's ability) to obtain financing, both in connection with the arrangement and in the future;

- Z-Tech's (and, assuming the approval of the arrangement, Z-Tech Medical's) ability to meet certain operational covenants in its credit facility with MMV Financial Inc.;

- Z-Tech's (and, assuming the approval of the arrangement, Z-Tech Medical's) ability to maintain or obtain product liability insurance;

- Z-Tech's (and, assuming the approval of the arrangement, Z-Tech Medical's) reliance on contract manufacturers;

- Z-Tech's (and, assuming the approval of the arrangement, Z-Tech Medical's) reliance on a single supplier for its arrays;

- risks associated with the completion of clinical trials and obtaining regulatory approval to market Z-Tech's (and, assuming the approval of the arrangement, Z-Tech Medical's) products;

- market acceptance of Z-Tech's (and, assuming the approval of the arrangement, Z-Tech Medical's) technologies and products, assuming the successful completion of the arrangement;

- Z-Tech's (and, assuming the approval of the arrangement, Z-Tech Medical's) ability to enforce its intellectual property rights and protect its proprietary technologies;

- Z-Tech's (and, assuming the approval of the arrangement, Z-Tech Medical's) financial and technical resources relative to those of its competitors; and

- other risk factors identified from time to time in Inflazyme's (and, assuming the approval of the arrangement, Z-Tech Medical's) securities regulatory filings.

For a further description of the principal risks affecting Inflazyme, see Inflazyme's regulatory filings. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements.

Although Inflazyme and Z-Tech have attempted to identify important risks, uncertainties and other factors that could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements, there may be other factors that cause actual results or events to differ from those expressed or implied in the forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement and neither Inflazyme nor Z-Tech undertakes any obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise after the date hereof.

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