Lyrtech announces sale of assets and concurrent private placement

    QUEBEC CITY, Jan. 22 /CNW/ - Lyrtech Inc. (Lyrtech; TSX-V: LYT),
announces that on January 16, 2008, it signed a letter of intent with Enigma
Interconnect Inc. (Enigma), an electronics manufacturing services (EMS)
provider, for the sale of certain assets of the Innovator division of Lyrtech
and a concurrent private placement of $500,000. The aggregate proceeds of both
transactions is $844,103. This letter of intent was instrumental in obtaining
an interim forbearance agreement with its bank. On January 21, 2008, the
parties closed both transactions in trust, pending the release of the funds
held in trust and regulatory approval.
    Lyrtech and Enigma are operating at arm's length. Enigma has
manufacturing facilities in Canada, and procurement and engineering offices in
China. Enigma is entering into this transaction with the intent of creating a
close industrial partnership with Lyrtech and Lyrtech intends to use the
manufacturing services of Enigma to manufacture its own products as well as
the products being designed for its customers. For more information relating
to Enigma, visit

    Disposition of Assets

    According to the terms of the agreements, Enigma has acquired certain
manufacturing assets for a price of $1,234,000, paid by way of the assumption
of leasing and debt obligations and has acquired inventory of electronic
components and work-in-progress in consideration for $344,103, paid at
closing. Enigma has also assumed the liabilities of Lyrtech in relation to a
commercial lease, in an amount of $1,229,000. No finder's fee will be paid in
relation to this transaction.

    Private Placement

    Concurrently with this sale of assets, Lyrtech undertook a private
placement of convertible debentures for proceeds of $500,000. Each convertible
debenture will bear interest at a rate of 10% per annum and will have a term
of one year. These debentures may be converted into Class A shares of Lyrtech
at the option of the debentureholder at a conversion price of $0.10 per share
prior to the consolidation of the share capital of Lyrtech on a 10:1 basis or,
after such consolidation, both the debentureholder and Lyrtech will have the
option to convert the debenture, in its entirety, at a conversion price of
$0.15 per common share (post-consolidation). Any securities issued as part of
this offering are subject to a four-month hold period under applicable
securities legislation. The consolidation of the share capital of Lyrtech,
previously approved by the shareholders of Lyrtech at the annual and special
meeting held April 30, 2007, was also approved by the board of directors of
Lyrtech January 21, 2008.
    Lyrtech also announces that it received the resignation of Mr. Pierre
Lortie from the Board of Directors, Friday, January 18, 2008, after closing of
markets, and January 21, 2008 received the resignation of Mr. Jules Pleau from
the Board of Directors. Both have been valuable members of the Board of
Directors and the Board of Directors would like to thank them for their
contributions. Mr. Louis Bélanger and Mr. Richard Rumpf will replace Mr.
Lortie and Mr. Pleau on the audit committee of Lyrtech.

    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 and software IP, as well as design, prototyping, and manufacturing
of electronic products through its manufacturing division. 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. For more
information, visit

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

For further information:

For further information: Louis Bélanger, President and CEO, Lyrtech
Inc., (418) 877-4644,

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