Warnex Inc.

Warnex Inc.

December 20, 2007 08:59 ET

Warnex Announces Results of Review of Strategic Options

LAVAL, QUEBEC--(Marketwire - Dec. 20, 2007) - Warnex Inc. (TSX:WNX) today announced that it has finalized its review of various strategic options for its ongoing laboratory services business following the announcement made in April 2007. Warnex's Board of Directors has concluded that at the present time, the option which provides the most value for its shareholders is the continued operation of its laboratory services business. Warnex has ended this review process and has terminated the mandates of the Independent Committee of the Board of Directors and GMP Securities L.P. The Company will focus on maximizing the profitability of its analytical, bioanalytical and medical laboratory divisions, on their continued growth as well as on the refinancing and restructuring of its debt instruments.

"The Board of Directors believes in the continued success of Warnex's laboratory-based services," said Richard Laferriere, Chairman of the Board of Directors of Warnex. "After having undergone a comprehensive analysis of the current options, the Board of Directors believes that the best avenue to generate value for Warnex's shareholders lies in the continued profitable growth of Warnex's operations."

"2007 has been a year of many changes for Warnex, with the divestiture of our pathogen detection business and our increased focus on the laboratory services sector," said Mark Busgang, President and CEO of Warnex. "We are currently negotiating the refinancing of our debt instruments and we have confidence that our balance sheet will be more stable in the near future. Going forward, we are dedicated to offering quality services to our customers and to continue to grow our analytical, bioanalytical and medical laboratories business both organically and through acquisitions."

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.


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 strategic options for the Company, financial resources and credit risk, laboratory facilities, suppliers, government regulations, key employees, key customers and business partners, foreign currency 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 the Management's Discussion and Analysis for the third quarter ended September 30, 2007, 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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