Dynex Power Emphasized 2007 Progress at AGM

15.06.07

Dynex Power Inc., a leading, independent power semiconductor company, determined it appropriate after its Annual General Meeting of shareholders to release publicly the following statements.

Dr. Paul Taylor, President and Chief Executive Officer, announced that the order book which currently stood at $25.0 million was higher than at any point in the past 5 years. In addition, the robust character of the order book provided the Company a higher level of confidence in assessing its forward expectations than it has enjoyed in the past


In making the release about its expectations, the Company cautioned shareholders and potential investors about relying on the Company’s expectations in that the Company’s expectations contain forward looking statements and assumptions which are subject to the uncertainties and vagaries of the markets and the future, which could cause actual results to differ materially from expectations, and which are each difficult and subjective to forecast. As a consequence, shareholders and potential investors must make their own independent judgments about the accuracy and reliability of the Company’s expectations.

Dr. Taylor also stated that over the past six months, the Company has been approached by a number of parties who expressed interest in some form of strategic combination or joint venture. However, the Company chose to hold exclusive discussions with one non-financial party on the desirability of that industry participant acquiring a substantial but not a majority interest in the Company by means of a private placement of treasury shares, the proceeds of which would be used for debt reduction, and capital expenditure that the Company believes could be transformational.

Dr. Taylor emphasized that negotiations continue and there is absolutely no assurance that the discussions referred to will lead to the execution of a definitive agreement and consummation of a transaction. The Company cautions shareholders and potential investors about relying on the uncertainty of the Company and the prospective investor agreeing terms and conditions regarding the private placement.

In making the release about its expectations, the Company cautioned shareholders and potential investors about relying on the Company’s expectations in that the Company’s expectations contain forward looking statements and assumptions which are subject to the risks and uncertainties of the markets and the future, which could cause actual results to differ materially from expectations, and which are each difficult and subjective to forecast. Certain of those risks and uncertainties are discussed in the Company’s management discussion and analysis for the first quarter ended March 31, 2007 and include, among other things, risks and uncertainties relating to: the level of worldwide demand for power semiconductors and power semiconductor assemblies; the level of investment in power electronic equipment, electrification of transport systems, alternative power generation and high quality power transmission and distribution; the worldwide demand for and supply of silicon; and fluctuations in exchange rates between Sterling, US dollars and Euros. As a consequence of these and other risks and uncertainties, shareholders and potential investors must make their own independent judgments about the accuracy and reliability of the Company’s expectations.