Luxell Technologies Inc.
TSX : LUX

Luxell Technologies Inc.

August 04, 2006 09:44 ET

Luxell Reports Management Change

TORONTO, ONTARIO--(CCNMatthews - Aug. 4, 2006) - Luxell Technologies Inc. (TSX:LUX) has announced that its Chief Financial Officer, Tom Wallace, has resigned to pursue other interests. Mr. Wallace's resignation is effective as of July 31, 2006. Mr. Wallace has agreed to remain available to the Company in an advisory role.

Mr. Tony Mbadiwe, will assume the role of interim CFO. Tony has twenty years of career experience in both industry and public accounting, including management roles with Shell and Unilever across Africa, Europe and North America. He holds an MBA from Babson College, Boston, USA, which is ranked #1 among all business schools for entrepreneurship.. He is also a professional member of CGA Ontario and is actively involved in community service. We welcome Tony to Luxell Technologies Inc.

The company has also completed a thorough review of its operations and defined a reorganization strategy which, for the short-term, will control further growth in the military display business and implement both cost containment/reduction and revenue/price increase strategies. It further plans to examine ways to increase the out-sourcing of actual production activities, which would enable the company to achieve job reduction and facility change objectives.

In addition, the company announced that its strategic review of the black layer technology status and business opportunity has concluded the black layer R&D activities have met the OEM industry's state-of-the-art manufacturing capabilities and should be brought to an end. The emphasis will now be shifted wholly to finding compatible commercial applications whether through joint venture and or direct product development initiatives.

Commenting on the changes, John MacDonald, CEO said "the company has spent the past three years developing valuable display IP and products which now need to be brought to a wider market place. At the same time, I don't think it was fully appreciated how rapidly the operating costs would grow as the Aktelux division jumped from four product programs to 16 in the past two years, and the upfront engineering costs that were associated with that kind of growth."

Over the next several months, prior to the next Annual General Meeting, the company plans to concentrate its efforts and resources on reorganization, strategic repositioning, cost management programs and key growth opportunities.

"As a new member of the Board of Directors it has taken a number of months to become completely familiar with the current situation," Mr. MacDonald continued, "and there is no doubt the last several years have been more challenging and demanding than exciting. But I now feel that with the new strategies we are implementing, which candidly recognize the reality of the past, Luxell is transforming itself and embarking on a new path with a valuable technology and product portfolio."

Luxell expects to provide additional information and an update when it reports its fourth quarter and year-end earnings.

About Luxell

Luxell designs, manufactures and licenses flat panel display technologies and solutions for defence and avionics industries through its operating divisions Aktelux and Luxell Research. More information can be found at www.luxell.com, www.aktelux.com and www.luxellresearch.com.

(C) Luxell Technologies Inc., Luxell and Black Layer are trademarks of Luxell Technologies Inc. All other company and/or product names are trademarks and/or registered trademarks of their respective manufacturers.

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