IPICO Inc.
TSX VENTURE : RFD

IPICO Inc.

September 26, 2007 07:34 ET

IPICO Inc. Announces $5 Million Bought Deal Financing

BURLINGTON, ONTARIO--(Marketwire - Sept. 26, 2007) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

IPICO Inc. (TSX VENTURE:RFD) ("IPICO" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters, led by Wellington West Capital Markets Inc. and including Desjardins Securities Inc. (collectively, the "Underwriters"), to raise $5,000,200 by way of a bought deal private placement (the "Offering"). Under the agreement, the Underwriters have agreed to purchase 4,348,000 units of the Company ("Units") from treasury, at a price of $1.15 per unit. Each Unit will consist of one common share of the Company (a "Common Share") and one half of one common share purchase warrant (each full warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share of the Company for a period of 12 months from Closing at a price of $1.30 per Common Share.

The Underwriters have the option to purchase up to an additional 2,608,700 Units at the issue price for additional gross proceeds of up to $3,000,005. The option is exercisable at any time up to 24 hours before closing of the Offering.

The financing is scheduled to close on or about October 10, 2007 and is subject to the receipt of all necessary regulatory approvals (including the approval of the TSX Venture Exchange) and execution and delivery of a definitive underwriting agreement and related documentation.

The Company plans to use the proceeds of the Offering for working capital and general corporate purposes. IPICO will pay the Underwriters a cash commission of 6.0% of the gross proceeds of the Offering. The Underwriters will also receive compensation options ("Compensation Options") exercisable for that number of Common Shares as is equal to 5.0% of the total number of Units sold pursuant to the Offering, at an exercise price of $1.15. The Compensation Options will expire 12 months after the Closing Date.

The securities being offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States.

ABOUT IPICO Inc.

IPICO Inc. is an RFID solution supplier with operations in Canada, USA, South Africa, Europe, Asia and Australia. IPICO produces smart labels and tags based on the IP-X ™ communication protocol. IPICO's low interference readers are designed to meet regulatory requirements in many major markets, and allow for multi-reader rollout in close proximity. IPICO's low cost RFID products excel at long read range, fast multi-read anti-collision and high thru-beam read-speeds of dynamic tag populations. These products are used to optimize the management of items, people, animals and processes within the logistic supply chain and other value chains. For further information, go to www.ipico.com.

This news release contains certain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations and results, including, without limitation, statements as to sales forecasts and required minimum future revenues. Any statements in this news release that are not statements of historical fact may be considered to be forward-looking statements. Written words such as "may", "will", "expect", "believe", "anticipate", "estimate", "intends", "goal", "objective", "seek", "attempt", "suggest" or variations of these or similar words, identify forward-looking statements. These statements by their nature are estimates of future results only. Actual results could differ materially from those contained in the forward-looking statements and are based on current expectations that involve substantial risks and uncertainties, including but not limited to the failure to meet market growth, order volume, delivery commitment or minimum revenue expectations, political intervention, and those other risks and uncertainties detailed from time to time in IPICO's periodic reports filed on SEDAR (www.sedar.com).

THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO PURCHASE SECURITIES OF THE COMPANY IN ANY JURISDICTION.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.

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