Warnex Inc.
TSX : WNX

Warnex Inc.

March 19, 2008 17:00 ET

Warnex to Restructure its Debt

LAVAL, QUEBEC--(Marketwire - March 19, 2008) - THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Warnex Inc. (TSX:WNX) announced today that it has entered into agreements in principle with the various holders of all of its outstanding debentures, aggregating $11,345,000 in principal amount, in order to modify the terms and conditions of such debentures.

The agreements in principle include the following elements:

- Elimination of the fixed conversion rate of 1.369 contained in the US dollar denominated debentures, therefore reducing the principal debt from CDN$6,845,000 to US$5,000,000;

- Conversion of an aggregate of $1,833,334 in principal into common shares of Warnex;

- Repayment of an aggregate of $1,333,333 in principal upon closing;

- Deferral of an aggregate of $6,333,333 in principal for three additional years;

- Increase of the interest rate on the US dollar denominated debentures to 12% per annum;

- Reduction in the exercise price of 3,963,729 warrants to $0.25 and the extension of the term of 1,570,983 warrants by two years.

"We are pleased to have reached these agreements in principle with our debenture holders in order to restructure our debt," said Mark Busgang, President and CEO of Warnex. "With the combined elements of these agreements, we will reduce the amount owed under the debentures by $5 million, representing a significant improvement to our balance sheet. We believe that this confirms the confidence of these investors as we move forward in executing our business plan as a focused CRO."

The agreements in principle are non-binding and subject to usual conditions, namely, the approval of certain investors, the conclusion of all definitive documentation and the receipt of all requisite regulatory approvals. Closing of this debt restructuring is expected to occur early in Warnex's second financial quarter.

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.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

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.

Contact Information