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Listing: TSX Venture Exchange

Symbol: DNX



Dynex Announces Equity Cancellation

Cancellation of 1.2 million shares held in Escrow


Lincoln, England, September 23, 2005 -- Dynex Power Inc., a leading high power semiconductor company, today announced that 1,184,810 of its common shares are being cancelled.

Under a Performance Escrow Agreement dated 5th August, 1999 some 3,554,432 authorised and issued shares were placed in escrow and could only be released on the achievement of certain performance targets and with approval from the Stock Exchange. To date, some 2,369,622 shares have been released. However, the targets have not been met to allow the remaining 1,184,810 shares to be released and under the terms of the Agreement these shares are now being cancelled, thereby reducing the number of shares outstanding.


About the Company

Dynex is one of the world’s leading designers and manufacturers of high power semiconductor products. Their capabilities permit the manufacture of high power bipolar discrete semiconductors, high power modules, including insulated-gate bipolar transistors (IGBTs) and high power electronic assemblies. These products are used to improve the reliability and quality of electric power generation, transmission and distribution systems, marine and rail electric drives, aero-technology electric systems, induction heating, industrial motor drives and controls and the next generation electric vehicle drive technologies. The Company also manufactures high reliability integrated circuits for use in specialist applications. Dynex is headquartered in Lincoln, England, which houses the manufacturing, silicon fabrication, marketing and sales, design and research & development operations. Sales staff operate worldwide.


Press announcements and other information about Dynex are available on the World Wide Web at http://www.dynexsemi.com.

All monetary values expressed in this release are in Canadian dollars unless stated otherwise.

The TSX Venture Exchange has neither approved nor disapproved of the information in this press release.


For more information:

Dr. Paul Taylor
President and Chief Executive Officer

or
Bob Lockwood
Finance Director and Chief Financial Officer

Dynex Power Inc.
Tel: +44 1522 500 500

Email: Paul_Taylor@Dynexsemi.com



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