Neo Material Technologies Provides Update on New Shareholder Rights Plan

    TORONTO, April 21 /CNW/ - Neo Material Technologies Inc. ("Neo" or the
"Company") (TSX: NEM) announced today that the new shareholders rights plan
(the "New Rights Plan"), to be voted upon by shareholders at the Company's
annual and special meeting scheduled for this Friday, April 24, 2009, will
only remain in effect until the 2010 annual meeting of shareholders. The Board
of Directors undertakes to submit the New Rights Plan (or a variation thereof)
to shareholders for reconfirmation at such time.
    The New Rights Plan was adopted in direct response to the unsolicited
partial offer (the "Pala Partial Offer") by Pala Investments Holdings Limited.
The offer price of Cdn.$1.40 under the Pala Partial Offer is financially
inadequate and is at a discount to the closing price of Neo's common shares on
the Toronto Stock Exchange on April 20, 2009 of Cdn.$1.62.
    The New Rights Plan is substantially similar to the Company's existing
shareholder rights plan (the "Existing Rights Plan"), except that it requires
that any take-over offer be made to all Neo shareholders for all of their
shares. The Existing Rights Plan, ratified by shareholders in April 2007, is
in full force and effect. A full copy of the New Rights Plan and the Existing
Rights Plan are available on SEDAR at

    Directors' Circular

    Neo's board of directors' recommendation to reject the Pala Partial
Offer, as well as a detailed discussion of its reasons for rejection, are
contained in a circular prepared by the board dated March 9, 2009 (the
"Directors' Circular") filed with Canadian securities regulatory authorities.
The Directors' Circular is available on the Company's website at or on SEDAR at It was mailed to Neo's
shareholders on March 10, 2009 and shareholders are urged to read the
Directors' Circular in its entirety.

    About Neo Material Technologies

    Neo Material Technologies is a producer, processor and developer of
neodymium-iron-boron magnetic powders ("Neo 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 in the production of bonded magnets for 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: Questions may be directed to Neo's information
agent, Laurel Hill Advisory Group, toll-free at 1-888-812-9183

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Neo Material Technologies Inc.

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