Luxell Announces $1 Million Financing

    TORONTO, June 4 /CNW/ - Luxell Technologies Inc. (TSX:LUX) today
announced that it has engaged Kingsmill Capital Partners Inc. ("KCP" /
"Agent") to facilitate a private placement to raise a minimum of $1 million
through the issuance of common shares from treasury at $0.12 per share. As
additional compensation, the Company will issue to the Agent broker warrants
entitling the Agent to purchase 1,000,000 common shares of the Company
exercisable at $0.13 for a period of twenty-four months following the closing.
    The funds will be used solely to meet increasing working capital demands
resulting from the recent growth in sales activity now being enjoyed by
    The terms of the engagement of KCP include KCP raising a minimum of
$1 million and the parties have agreed that an oversubscription of up to 20%
will be allowed. KCP also has the right of first refusal to facilitate a
larger financing of up to $5 million in the next fiscal year that will be used
for a combined purpose of redeeming debt owed by Luxell and further increasing
working capital to meet the increasing demands of expected sales growth.
    "Everyone on our team has worked very hard over the past 8 months and
especially since January of this year to build on existing business and
develop new sales and product enhancements. We are now beginning to see the
turnaround of Luxell's fortunes and can see we have reached the point where an
equity investment makes sense both for the company and for investors. We are
very proud of the advances we have made to increase sales and reduce costs and
we look forward to a great deal more of this type of success as we continue to
move ahead," says Luxell President and CEO, David Pasieka.
    Completion of the private placement is subject to receipt of all required
regulatory and other approvals, including acceptance by the TSX.

    About Luxell
    Luxell Technologies Inc. ("LTI") has its origins in the research and
development of optical improvement technologies (contrast enhancement) known
collectively as the Black Layer(TM) Technology. Application of this technology
is in Flat Panel Display (FPD) devices. These devices are used in a wide array
of products requiring outdoor or ambient sunlight conditions and usually in a
rugged environment. To date, LTI has concentrated on aircraft and ground
vehicle installations in the defense industry in North America and Europe.
    The company's products can already be found in aircraft built by Boeing,
Airbus and McDonnell Douglas and direct sales contracts have been and are
being executed with Tier 1 companies (integrators) that supply OEM parts to
aircraft manufacturers such as Northrop Grumman-Lital and Rheinmetall in
Europe and Lockheed Martin in North America.

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For further information:

For further information: Luxell Technologies Inc., Simon Dann, (905)
363-0325 ext 235,; Kingsmill Capital Partners Inc., Chris
Carl, (416) 534-9996 ext 114,

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