Neo Material Technologies Inc. - News Release



    TORONTO, Feb. 9 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) (the
"Company") has today been notified by press release issued by Pala Investments
Holdings Limited ("Pala"), which was followed by a letter delivered to the
Company, whereby Pala states its intention to make a partial offer to acquire
up to an additional 23 million common shares in the capital of the Company.
Such an offer would represent an acquisition of an additional 20% of the
common shares in the capital of the Company and, based on the Company's
information, if completed, would bring Pala's aggregate ownership interest to
approximately 40% of the issued and outstanding common shares in the capital
of the Company.
    As referenced in Pala's press release, the Company has a shareholder
rights plan (the "Rights Plan") in place. In its letter, Pala has requested
that certain provisions of the Rights Plan be waived so that its potential
partial bid will constitute a permitted bid under the terms of the Rights
Plan.
    A special committee comprised entirely of independent directors will
review and consider this request with the assistance of financial and legal
advisors.

    About Neo Material Technologies

    Neo Material Technologies is a producer, processor and developer of
neodymium-iron-boron magnetic powders, rare earths and zirconium based
engineered materials and applications through its Magnequench and AMR
Performance Materials business divisions. These innovative products are
essential in many of today's high technology products. Magnequench's neo
powders are used to produce bonded magnets, generally used in micro motors,
precision motors, sensors and other applications requiring high levels of
magnetic strength, flexibility, small size and reduced weight. Rare earth and
zirconium applications include catalytic converters, computers, television
display panels, optical lenses, mobile phones and electronic chips. The
Company is headquartered in Toronto, Canada and has approximately 1,300
employees in 15 locations, across 10 countries.

    %SEDAR: 00002061E




For further information:

For further information: Michael Doolan, Chief Financial Officer, (416)
367-8588, ext. 335, Website: www.neomaterials.com, e-mail:
info@neomaterials.com; Ali Mahdavi, Investor Relations, (416) 962-3300, ext.
225, e-mail: amahdavi@neomaterials.com

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Neo Material Technologies Inc.

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