Warnex Inc.

Warnex Inc.

May 06, 2008 07:00 ET

Warnex Announces Agreement With Desjardins Group

LAVAL, QUEBEC--(Marketwire - May 6, 2008) - Warnex Inc. (TSX:WNX) announced today that it has signed an agreement with Desjardins Group, the largest financial cooperative in Canada, for financing and banking services. As part of the agreement, Warnex will receive financing facilities totalling $4 million, which include a revolving line of credit of $2 million and a term debt of $2 million.

"We are excited to partner with Desjardins and are already impressed by their exceptional service," said Mark Busgang, President and CEO of Warnex. "This agreement is one of the elements of our strategy to restructure our balance sheet in 2008 to better position us for future growth opportunities. This is being done in conjunction with the previously announced restructuring of our debentures."

The proceeds of this financing will be used to repay certain debentures and the existing term debt with National Bank of Canada, as well as for general working capital purposes.

About Warnex

Warnex (www.warnex.ca) is a life sciences company devoted to protecting public health by providing laboratory services to the pharmaceutical and healthcare sectors. Warnex's analytical services division provides pharmaceutical and biotechnology companies with a variety of quality control services, including traditional chemistry, chromatography, microbiology, method development and validation, and stability studies. Warnex's bioanalytical services division specializes in bioequivalence and bioavailability studies for clinical trials. Warnex's medical laboratories division focuses on genetic and biochemical testing for the healthcare industry and has extensive expertise in genetic testing for human identification, molecular diagnostics, and pharmacogenetics.

About Desjardins

Desjardins Group is the largest integrated cooperative financial group in Canada, with overall assets of $144 billion, as at December 31, 2007. It comprises a network of caisses, credit unions and business centres in Quebec and Ontario, and some twenty subsidiary companies in life and general insurance, securities brokerage, venture capital and asset management, many of which are active across the country. Drawing on the expertise of its 40,000 employees and the commitment of more than 6,500 elected officers, Desjardins offers its 5.8 million individual and corporate members and clients a full range of financial products and services. Its physical distribution network is complemented by leading-edge virtual access methods. To find out more, consult www.desjardins.com.


Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For information identifying known risks and uncertainties, relating to financial resources, government regulations, laboratory facilities, suppliers, employees, key customers and business partners, foreign currency risk, credit risk, volatility of share price, and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the heading Risks and Uncertainties in Warnex's most recent Management's Discussion and Analysis, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.

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