Xillix Technologies Corp.

Xillix Technologies Corp.

October 23, 2006 21:16 ET

Xillix Announces Filing for Protection

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Oct. 23, 2006) - Xillix Technologies Corp. (TSX:XLX) announced that, as a result of the demand letter which it received from its secured lender, Hercules Technology Growth Capital, Inc., on October 13, 2006, the Company has sought and obtained an order of the British Columbia Supreme Court granting it protection from creditors under the Companies' Creditors Arrangement Act. The court order granted earlier today will give the Company time to develop a reorganization plan, thereby providing the Company with an opportunity to maximize value for its stakeholders. During the period of this protection, the Company intends to continue to seek a collaboration partner or other interested party to further the development and commercialization of Xillix's world leading fluorescence endoscopy for cancer detection. PricewaterhouseCoopers has been appointed as Monitor to assist the Company in connection with its reorganization.

About Xillix

Xillix Technologies Corp. is a Canadian medical device company and the world leader in fluorescence endoscopy for improved cancer detection. Xillix's currently approved device, Onco-LIFE™, incorporates fluorescence and white-light endoscopy in a single device that has been developed for the detection and localization of lung and gastrointestinal (GI) cancers. An international multicenter lung cancer clinical trial of Onco-LIFE demonstrated a 325% per- lesion improvement in the detection of early lung cancer (moderate-severe dysplasia and carcinoma in situ) and a 250% per- patient improvement compared to white-light alone. Onco-LIFE is approved for sale in the United States for the lung application and in Europe, Canada and Australia for both lung and GI applications. The Company also recently announced that it has developed a new product, LIFE Luminus™, designed to allow fluorescence imaging of the colon using conventional video endoscope technology.

"Statements contained in this document which are not based on historical fact, including without limitation, statements containing the words "may", "will", "plans", "intends", "expects", "anticipates", "believes", "estimate", "continue" and similar expressions, constitute "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements contained in this document may involve, but are not limited to, statements relating to the Company's objectives, priorities, strategies, actions, targets, expectations and outlook. Forward-looking statements are necessarily based upon assumptions and predictions with respect to the future, including but not limited to the factors referred to below. As a result, forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied thereby. These risks, uncertainties and other factors include, but are not limited to the factors referred to in the Company's Annual Information Form dated March 28, 2006 and its other filings with the applicable Canadian securities regulatory authorities. In light of these uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements, and the Company assumes no obligation to update or revise such information to reflect later events or developments, except as required by law."

The Company is listed on the Toronto Stock Exchange under the trading symbol "XLX".

Contact Information

  • Xillix Technologies Corp.
    Sonja Rematore
    Investor Relations
    (604) 278-5000
    Xillix Technologies Corp.
    Brett Gannon
    President and Chief Executive Officer
    (604) 278-5000
    (604) 278-5111 (FAX)
    Email: ir@xillix.com
    Website: www.xillix.com