Xebec Adsorption Inc.

Xebec Adsorption Inc.

September 14, 2009 16:00 ET

Xebec Achieves Significant Commercial Milestones in the China Market

Key Product Sales to Compressed Natural Gas Market Leaders

MONTREAL, QUEBEC--(Marketwire - Sept. 12, 2009) - Xebec Adsorption Inc. (TSX:XBC)("Xebec"), a global leader in the purification and dehydration of natural gas for natural gas vehicle (NGV) refueling stations, today announced significant commercial milestones in the growth of its business in China.

Xebec, through its wholly-owned Chinese subsidiary, has become a certified vendor of natural gas dehydration equipment to Sinopec (NYSE:SNP)(LSE:SNP) and CNPC - both leading Chinese energy companies and developers of compressed natural gas (CNG) fueling stations in China. In the year to date, Xebec has received orders for a total of four natural gas dryers from these companies for CNG stations to be constructed in late 2009. Natural gas dryers are used to remove moisture from natural gas distributed by pipeline to meet the requirements of fuel-grade CNG.

Kurt Sorschak, President and CEO of Xebec, said, "We are extremely happy to become one of the few certified suppliers of CNG drying equipment to CNPC and Sinopec. CNG is a clean, low-emission fuel that offers China a domestic alternative to its growing dependence on foreign oil. The use of natural gas as a transportation fuel is growing significantly in China, with over 400,000 CNG fueled vehicles on the road and over 1,000 CNG fueling stations operating across the country. Our strategy of targeting key market leaders like CNPC and Sinopec is starting to deliver results, and we are extremely optimistic about our future in China."

Xebec also recently sold its first hydrogen purifier (H-3200) to Shanghai Huaxi Chemical Industry Science & Technology Co., Ltd., a leading manufacturer of hydrogen generation plants in China. Xebec's H-3200 will be installed at an on-site hydrogen plant being constructed by Shanghai Huaxi at a chemical plant located in Chengdu, Sichuan Province.

"Hydrogen consumption has grown significantly in China over the past five years as hydrogen-consuming industries have shifted production to mainland China," added Kurt Sorschak. "Smaller capacity on-site hydrogen plants offer a compelling alternative to merchant supplies of compressed or liquid hydrogen, which can be difficult to distribute in many parts of China. Xebec's H-3200 hydrogen purifier offers a compact, reliable and cost-effective solution for on-site systems, and we look forward to building our business in this growing market."

Revenues from these sales, which total approximately C$475,000, will be recognized in fiscal 2010.

About Xebec Adsoprtion Inc.

Xebec specializes in the design and manufacture of cost-effective, environmentally responsible purification, separation, dehydration, and filtration equipment for gases and compressed air. The solutions we provide include natural gas and biogas purification, natural gas dehydration, hydrogen purification for fuel cell and industrial applications, and specialized solutions for other gases. Xebec also offers compressed air treatment solutions. To date, Xebec has supplied more than 8,000 adsorption systems to more than 1,300 customers worldwide. Xebec is headquartered in Blainville, Quebec, Canada and its shares trade on the TSX under the symbol "XBC". More information can be found at www.xebecinc.com.

Caution Concerning Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking" statements within the meaning of applicable securities laws. This forward looking information includes, but is not limited to, the expectations and/or claims of management of Xebec with respect to information regarding the business, operations and financial condition of Xebec. Forward looking information contained in this press release involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Xebec or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This list is not exhaustive of the factors that may affect forward-looking information contained in this press release. When used in this press release, such statements use such words as "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "will" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this presentation. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements.

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