Neo Material Technologies Announces Magnequench and Toda Kogyo Joint Venture

    TORONTO, Oct. 20 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) (the
"Company") reported today that the Company's Magnequench division has entered
into a joint venture agreement with Toda Kogyo Corp. ("Toda Kogyo"). Under the
terms of the agreement, Neo Material's Magnequench division will hold a 33
percent interest in the joint venture with Toda Kogyo holding the 67 percent
balance. Based in Tianjin, China, the new entity, Toda Magnequench Magnetic
Materials Co. Ltd. ("TMT), is expected to commence production of rare earth
magnetic compounds for injection molded neo magnets during the fourth quarter
of 2008.
    With an initial 30 tons per month of production capacity, TMT's mission
is to accelerate the growth of injection molded neo magnets used in
automotive/electronic components and high speed motors. The joint venture
allows both parties to work directly with customers in high growth areas in
the automotive and electronics markets.
    By combining Magnequench's stable supply and development capabilities for
neo powders with the production technology of molding materials and processes
developed and owned by Toda Kogyo, TMT will enjoy a significant cost and
technology advantage in the injection molding magnetic compounds market. As a
result, TMT will aggressively pursue growth opportunities in new applications
in its target markets. Injection molded neo magnets provide the optimum
solution in motor and sensor applications requiring superior magnetic
performance coupled with ultimate customization for complex magnetic shapes.

    About Toda Kogyo

    Toda Kogyo is one of the most advanced Japanese producers of iron oxide
particles which are essential raw materials, or integral components of
industrial and consumer products. Toda Kogyo also produces Nd-Fe-B based
compounds using Magnequench's Neo Powders.

    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:, e-mail:; Ali Mahdavi, Investor Relations, (416) 962-3300, ext.
225, e-mail:

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