Dynex Power Emphasized 2007 Progress at AGM - Outlook Continues to Improve



    Listing: TSX Venture Exchange
    Symbol:  DNX

    TORONTO, June 15 /CNW Telbec/ - Dynex Power Inc., a leading, independent
power semiconductor company, determined it appropriate after its Annual
General Meeting of shareholders to release publicly the following statements.
    Dr. Paul Taylor, President and Chief Executive Officer, announced that
the order book which currently stood at $25.0 million was higher than at any
point in the past 5 years. In addition, the robust character of the order book
provided the Company a higher level of confidence in assessing its forward
expectations than it has enjoyed in the past.
    Dr. Taylor, in his presentation to shareholders, reiterated the improved
performance in the Company's revenues, cost containment and gross profit
margins. Dr. Taylor stated that he believed these trends were continuing and
he made reference to the Company's financial performance expectations below:

    
    -------------------------------------------------------------------------
    (Cdn$ 000s)                                         Plan
    -------------------------------------------------------------------------
                      2006  Q1 2007   Q2 2007   Q3 2007   Q4 2007     2007
    -------------------------------------------------------------------------
    Revenue         23,713    7,163     6,738     7,766     9,168   30,835
    -------------------------------------------------------------------------
    Gross Margin     4,192    1,232     1,011     1,553     1,925    5,721
    -------------------------------------------------------------------------
    GPM Percentage      18%      17%       15%       20%       21%      19%
    -------------------------------------------------------------------------
    Net Profit/(Loss) (273)     (39)     (150)      120       600      531
    -------------------------------------------------------------------------
    


    In making the release about its expectations, the Company cautioned
shareholders and potential investors about relying on the Company's
expectations in that the Company's expectations contain forward looking
statements and assumptions which are subject to the uncertainties and vagaries
of the markets and the future, which could cause actual results to differ
materially from expectations, and which are each difficult and subjective to
forecast. As a consequence, shareholders and potential investors must make
their own independent judgments about the accuracy and reliability of the
Company's expectations.
    Dr. Taylor also stated that over the past six months, the Company has
been approached by a number of parties who expressed interest in some form of
strategic combination or joint venture. However, the Company chose to hold
exclusive discussions with one non-financial party on the desirability of that
industry participant acquiring a substantial but not a majority interest in
the Company by means of a private placement of treasury shares, the proceeds
of which would be used for debt reduction, and capital expenditure that the
Company believes could be transformational.
    Dr. Taylor emphasized that negotiations continue and there is absolutely
no assurance that the discussions referred to will lead to the execution of a
definitive agreement and consummation of a transaction. The Company cautions
shareholders and potential investors about relying on the uncertainty of the
Company and the prospective investor agreeing terms and conditions regarding
the private placement.
    In making the release about its expectations, the Company cautioned
shareholders and potential investors about relying on the Company's
expectations in that the Company's expectations contain forward looking
statements and assumptions which are subject to the risks and uncertainties of
the markets and the future, which could cause actual results to differ
materially from expectations, and which are each difficult and subjective to
forecast. Certain of those risks and uncertainties are discussed in the
Company's management discussion and analysis for the first quarter ended March
31, 2007 and include, among other things, risks and uncertainties relating to:
the level of worldwide demand for power semiconductors and power semiconductor
assemblies; the level of investment in power electronic equipment,
electrification of transport systems, alternative power generation and high
quality power transmission and distribution; the worldwide demand for and
supply of silicon; and fluctuations in exchange rates between Sterling, US
dollars and Euros. As a consequence of these and other risks and
uncertainties, shareholders and potential investors must make their own
independent judgments about the accuracy and reliability of the Company's
expectations.

    About the Company

    Dynex is one of the world's leading suppliers of specialist, high power
semiconductor products. Dynex Semiconductor Ltd is its operating business and
is based in Lincoln, England in a facility housing the fully integrated
silicon wafer fabrication, assembly and test, sales, design and development
operations. Dynex designs and manufactures high power bipolar discrete
semiconductors, power modules, including insulated-gate bipolar transistors
(IGBTs), and high power electronic assemblies. Dynex products are used world
wide in power electronic applications including electric power generation,
transmission and distribution, marine and rail traction drives, aircraft,
electric vehicles, industrial automation and controls. The company continues
to produce and sell certain high reliability integrated circuits (ICs) for use
in specialist applications led by its proven radiation hard
Silicon-on-Sapphire products for space and nuclear applications.
    Press announcements and other information about Dynex are available on
the World Wide Web at http://www.dynexsemi.com.
    All monetary values expressed in this release are in Canadian dollars
unless stated otherwise.

    The TSX Venture Exchange has neither approved nor disapproved of the
    information in this press release.
    %SEDAR: 00010667E




For further information:

For further information: Dr. Paul Taylor, President and Chief Executive
Officer or Bob Lockwood, Finance Director and Chief Financial Officer, Dynex
Power Inc., +44 1522 502 920, paul_taylor@dynexsemi.com


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