Xillix Technologies Corp.

Xillix Technologies Corp.

September 24, 2007 19:47 ET

Xillix Completes Plan of Compromise and Arrangement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 24, 2007) - Xillix Technologies Corp. ("Xillix" or the "Company") (TSX:XLX) today announced that it has completed the amended and restated consolidated plan of compromise and arrangement of the Company and its subsidiaries dated September 7, 2007 (the "Plan"), as approved by the Supreme Court of British Columbia on September 12, 2007. Pursuant to the Plan the following has occurred:

1. Nexia Biotechnologies Ltd. ("Nexia"), successor by amalgamation to Cavalon Capital Partners Ltd., has made a non-interest bearing loan of $4,400,000 to the Company (the "Loan");

2. all of the claims of the Company's secured and unsecured creditors' have been settled and released for payments by the Company totalling $3,600,000;

3. the authorized share capital of the Company has been increased by creating an unlimited number of non voting shares and an unlimited number of preferred shares;

4. 94.5% of the Loan has been converted into 112,023,510 common shares of the Company and 435,647,055 non voting shares of the Company, such that Nexia now holds 45% of the (voting) common shares of the Company and 100% of the non-voting shares of the Company, providing Nexia with the ownership of 80% of the total equity interests in the Company;

5. all outstanding options, warrants, exchange rights and conversion rights of the Company and its subsidiaries have been cancelled;

6. the Company's name has changed to "Biomerge Industries Ltd.";

7. PricewaterhouseCoopers Inc. has been discharged as the interim receiver of the Company appointed by the British Columbia Supreme Court; and

8. pursuant to the Plan and the Court Order approving the Plan, on Wednesday, September 26, 2007 the stay of proceedings imposed on the Company by order of the British Columbia Supreme Court under the Companies' Creditors Arrangement Act (the "CCAA") will be lifted and the Company will no longer be subject to the CCAA.

In connection with the completion of the Plan, the Company's common shares will, effective on September 26, 2007, be delisted from the Toronto Stock Exchange and listed on the NEX, under the symbol "BIL.H". Trading on the NEX will commence on that same date. The Company's non voting shares will not be listed. For more information, e-mail: gregmatthews@shaw.ca.

"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 May 28, 2007 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."

Contact Information