Neo Material Technologies Inc. announces completion of $80.6 Million bought deal financing



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    DISSEMINATION IN THE UNITED STATES/

    TSX STOCK SYMBOLS: NEM, NEM.WT

    TORONTO, Aug. 2 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) (the
"Company") is pleased to announce today that it has completed its previously
announced public offering of common shares of the Company to a syndicate of
underwriters led by GMP Securities L.P. and including Clarus Securities Inc.,
Cormark Securities Inc., Paradigm Capital Inc. and Raymond James Ltd. The
underwriters exercised their over-allotment option prior to closing, resulting
in the issuance of an aggregate of 17,600,000 common shares of the Company at
a purchase price of $4.60 per common share for aggregate gross proceeds to the
Company of $80,600,000. This Company intends to use the proceeds of the
offering to repay its subordinated convertible debentures, as previously
announced.

    About Neo Materials

    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, which are 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: www.neomaterials.com, e-mail:
info@neomaterials.com; Ali Mahdavi, Genoa Management, (416) 962-3300, ext.
225, e-mail: amahdavi@genoa.ca

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Neo Material Technologies Inc.

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