Lyrtech announces closing of private placement


    QUEBEC CITY, March 6 /CNW Telbec/ - Lyrtech Inc. ("Lyrtech"; TSX-V: LYT)
is pleased to announce the closing today of its previously announced private
placement. The private placement consists of 125,237,500 units ("Units") at a
price of $0.08 per Unit for gross proceeds to Lyrtech of $10,019,000 (the
"Offering"). Paradigm Capital Inc., Quest Securities Corporation and Dundee
Securities Corporation (collectively the "Agents") acted as agents to offer
the Units on a "best efforts" basis.
    Each of the Units consists of one Class A common share ("Common Share")
of Lyrtech and one Common Share purchase warrant ("Purchase Warrant"). Each
Purchase Warrant is exercisable for a period of 60 months at an exercise price
of $0.105. The Purchase Warrants will be subject to an accelerated expiry if,
any time following closing, the closing price of the Common Shares of Lyrtech
on the TSX Venture Exchange is greater than $0.16 for any 20 consecutive
trading days. The Agents received a commission of 8% of the gross proceeds of
the Offering placed by the Agents payable in cash and Agent's warrants equal
in number to 8% of the aggregate Units placed by the Agents in the Offering.
Each Agent's warrant is non-transferable and exercisable into Units at a price
of $0.08 per Unit for a period of two years expiring March 7, 2009. The Common
Shares and Purchase Warrants comprising the Units are subject to a four-month
hold period expiring July 7, 2007.
    As previously announced, Lyrtech intends to use the net proceeds to
reduce indebtedness and for working capital purposes.
    A portion of the proceeds of the Offering will be held in escrow pending
receipt of final TSX Venture Exchange approval in respect of a subscriber who
will, as a result of its participation in the Offering, acquire in excess of
10% of Lyrtech's issued and outstanding Common Shares.
    This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities of Lyrtech in the United States. The
securities have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the United States or to
U.S. Persons unless registered under the U.S. Securities Act and applicable
state securities laws or unless an exemption from such registration is

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    About Lyrtech

    Lyrtech develops and manufactures advanced digital signal processing
solutions for companies worldwide, a vital technology to network and wireless
communications, audio and video processing, as well as electronic systems in
all fields of technology. Lyrtech offers a full range of DSP-FPGA development
platforms, as well as design, prototyping, and manufacturing of electronic
products through its Innovator division.
    From the company's state-of-the-art 4,645-m2 (50,000-ft2) facility,
Lyrtech's Innovator division offers prototyping services, new product
introduction services, turnkey assembly, box build assembly, and other
electronic manufacturing services, providing customers with a quality
production run of highly complex products with a fast turnaround.
    Lyrtech works in partnership with industry leaders such as Texas
Instruments, The MathWorks, and Xilinx. Lyrtech's customers include many
prestigious names of the consumer electronics, telecommunications, aerospace,
and defense fields such as BAE Systems, Defence Research and Development
Canada (DRDC), the European Aerospace Defence and Space Company (EADS),
Fujitsu, Harris, ITT, Motorola, Neural Audio, NTT DoCoMo, and Samsung-Thales.

For further information:

For further information: Miguel Caron, President and Chief Executive
Officer, (418) 877-4644,; Alain Landry, Chief
Financial Officer, (418) 877-4644,

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