Dynex Power Inc. Announces Results of Special Meeting of Shareholders

30.01.08

LINCOLN, England (January 30th, 2008) Dynex Power Inc. (“Dynex”) announced today that the matters that came before the special meeting of shareholders held on January 30, 2008 in Toronto were approved.


As disclosed previously, Dynex’s wholly owned subsidiary, Dynex Semiconductor Limited (“DSL”), has £863,762 in convertible debt outstanding to Mr. David Banks and Mr. Daniel Owen, each of whom is a director of Dynex. Such debt was convertible at the lender’s election into shares of DSL. At the special meeting held on January 30, 2008 the shareholders of Dynex approved the proposal that the convertible portion of these loans should henceforth be convertible into common shares of Dynex at a fixed exchange rate of Canadian $2.28 to £1 Sterling and at a conversion price of $0.1585 per share. Approximately 96.63% of the votes cast at the special meeting were cast in favour of the proposal. Mr. Banks and Mr. Owen did not vote any shares held directly or indirectly by them at the meeting.

Mr Banks has elected to convert £289,666.67 of his loans into 4,166,814 shares of Dynex immediately and Mr Owen has elected to convert £144,833.33 of his loans into 2,083,407 shares of Dynex immediately. The remaining portions of such loans shall be convertible at any time at the option of the holder.

The TSX Venture Exchange previously provided conditional approval of this conversion and the issuance of such shares remains conditional upon receipt of final approval from the Exchange.
The TSX Venture Exchange has provided conditional approval of this conversion and change in conversion rights, the principal condition being the approval of the Dynex shareholders.

Dr. Paul Taylor, President and Chief Executive Officer said, “We are enthusiastic to submit this resolution to our shareholders and very pleased that Daniel Owen and David Banks agreed to it. We think the change in the basis of the conversion will improve the marketability of our shares and the conversion will lower our interest costs in the future.”

Further detail about the proposed conversion and changes will be set out in the materials sent to shareholders with the notice of special meeting.