Luxell Announces Non-Brokered Private Placement and Rights Offering



    TORONTO, March 5 /CNW/ - Luxell Technologies Inc. (TSX:LUX) (the
"Corporation") is pleased to announce that it intends to proceed with a
non-brokered private placement of units ("Units") in the capital of the
Corporation. Each Unit is comprised of one (1) common share in the capital of
the Company ("Common Share") and one half (1/2) Common Share Purchase Warrant
("Warrant"). Each whole Warrant entitles the holder to purchase one (1) Common
Share at a price of $0.25 for a period of two (2) years from the Closing Date.
The Units will be subject to a 4-month plus one day hold period.
    In addition, the Corporation is pleased to announce that it intends to
proceed with a rights offering to shareholders of Luxell. Each shareholder who
is an accredited investor would receive the right to subscribe for 1.25 Units
for each Luxell share that they own as of the Record Date, and would have an
additional subscription privilege to subscribe for any Units not taken up on
the exercise of rights.
    The other details of the private placement and the rights offering will
be determined by the Board of Directors of Luxell prior to filing the final
rights offering circular. Luxell will use net proceeds from the offerings for
working capital for continued sales growth, to retire the debt recorded on the
balance sheet as $3.75 million of Notes and for general corporate purposes.
    The private placement and rights offering is subject to regulatory
approval, including that of the Toronto Stock Exchange. Rights certificates
will not be delivered to shareholders who are resident in provinces other than
British Columbia, Alberta, Manitoba, Ontario or Québec, or who are resident of
jurisdictions outside of Canada. Notwithstanding the foregoing, ineligible
shareholders who establish, to the satisfaction of the Company, that the
receipt by them of rights and the issuance to them of shares upon the exercise
of the Rights will not be in violation of the laws of the jurisdiction of
their residence will be allowed to exercise the rights.

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any province, state or jurisdiction, including the
United States, in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
province, state or jurisdiction.

    About Luxell
    ------------
    Luxell designs, manufactures and licenses flat panel display technologies
and product solutions for the aerospace and defense sectors. Luxell is an ISO
certified company. More information can be found at www.luxell.com. (C) Luxell
Technologies Inc., Luxell and Black Layer are trademarks of Luxell
Technologies Inc. All other company and/or product names are trademarks and/or
registered trademarks of their respective manufacturers.

    %SEDAR: 00008266E




For further information:

For further information: Luxell Technologies Inc., Simon Dann, Director
Government & Corporate Relations, (905) 363-0325 ext 235, sdann@luxell.com

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LUXELL TECHNOLOGIES INC.

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