Dynex Power Announces Update on Strategic Discussions - Business Expectations Continue to Improve

    Listing: TSX Venture Exchange
    Symbol:  DNX

    LINCOLN, England, Sept. 27 /CNW Telbec/ - Dynex Power Inc., a leading,
independent power semiconductor company, today announced that discussions had
halted with the unnamed non-financial firm that had been referred to in the
Company's press releases of June 15th and August 17th of this year. The
discussions had been about the desirability of that firm acquiring a
substantial but not majority interest in the Company by means of a private
placement of treasury shares.
    Dr. Paul Taylor, President and Chief Executive Officer commented, "With
these discussions now halted, we can pursue other strategic options, which
have been under consideration. The improving financial performance of the
Company enables us to move forward with growing optimism."
    Dr. Taylor continued, "Let me use this announcement to provide a brief
update of our current operating performance. We now believe that our third
quarter net profits will be materially better than the expectations I
announced at our Annual General Meeting and which we commented on in our press
release of June 15th. Based on the strength of our order book, we also expect
a strong fourth quarter. In addition to our improving operating results, the
Company made early repayment of the (pnds stlg)500,000 loan from Directors
that we reported in our press release of May 30th, and we anticipate that as
part of our financial planning we will further reduce the level of our
indebtedness during this year. Lastly, we remain committed to reducing our
financial risk as well as funding the capital expenditure programmes also
discussed at our AGM and commented on in our last two quarterly financial

    Forward Looking Statements

    In commenting on its expectations, the Company cautioned existing and
potential shareholders 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 quarter ended June 30th, 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. Dynex disclaims any
intention or obligation to update or revise any forward looking statement
whether as a result of new information, future events or otherwise.

    About the Company

    Dynex is one of the world's leading, independent 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.
    %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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