Dynex Announces (pnds stlg)12 Million Expansion of its IGBT Fabrication Facility and Initial Financing for the Project



    
    Listing: TSX Venture Exchange
    Symbol: DNX
    

    LINCOLN, England, June 1 /CNW Telbec/ - Dynex Power Inc., a leading
specialist high power semiconductor company, today announced that its UK
subsidiary, Dynex Semiconductor Ltd, has received approval for a (pnds stlg)12
million expansion of its IGBT fabrication facility and has arranged a (pnds
stlg)7.3 million loan facility from ICBC (London) Limited to help pay for the
expansion.
    Paul Taylor, President and CEO of Dynex, commented "The installation of
two 6 inch IGBT wafer fabrication lines to replace our existing 4 inch line
will enable us to increase output dramatically. We need to do this to service
the demand from our new parent company, CSR Times Electric, for silicon wafers
so that they can meet the power module needs of the Chinese rail operators. In
addition to supplying the Chinese market, this expansion will make us more
competitive with power semiconductor module supplies to the rest of the
world".
    Bob Lockwood, Chief Financial Officer, said "ICBC (London) Limited has
provided us with a (pnds stlg)7.3m revolving credit facility for the next
twelve months. The facility has been guaranteed by CSR Times Electric. All
drawings under the facility will incur interest at the appropriate LIBOR rate
plus a margin of 1.35%. The facility is not intended to provide the long term
financing structure for the expansion, but it does allows us to place orders
and so get the project under way as quickly as possible. At the same time, we
will take steps to put in place a longer term financing structure for this
expansion project".

    About the Company

    Dynex designs and manufactures high power bipolar semiconductors, high
power insulated gate bipolar transistor (IGBT) modules, high power electronic
assemblies and radiation hard silicon-on-sapphire integrated circuits (SOS
IC's). The company's power products are used worldwide in power electronic
applications including electric power transmission and distribution, renewable
and distributed energy, marine and rail traction motor drives, aerospace,
electric vehicles, industrial automation and controls and power supplies. Our
IC products are used in demanding applications in the aerospace industry.
Dynex Semiconductor Ltd is its only operating business and is based in
Lincoln, England in a facility housing the fully integrated silicon
fabrication, assembly and test, sales, design and development operations.
Dynex is majority owned by Zhuzhou CSR Times Electric Co., Ltd.
    Zhuzhou CSR Times Electric Co., Ltd. is based in Hunan Province in the
People's Republic of China. It is listed on the Hong Kong stock exchange. CSR
Times Electric is the leading train-borne electrical system provider and
integrator for the railway industry in China. It is also engaged in
developing, manufacturing and selling train power converters, auxiliary power
supply equipment and control systems for trains for urban rail systems. In
addition, CSR Times Electric designs, manufactures and sells electrical
components including power semiconductor devices.

    Press announcements and other information about Dynex are available at
www.dynexsemi.com.

    Further information on CSR Times Electric can be found at
www.timeselectric.cn/en

    
    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    
    %SEDAR: 00010667E




For further information:

For further information: Dr. Paul Taylor, President and Chief Executive
Officer; Bob Lockwood, Finance Director and Chief Financial Officer, Dynex
Power Inc., +44 1522 500 500, investorrelations@dynexsemi.com


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