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Listing: TSX Venture Exchange

Symbol: DNX


Dynex Announces Proposed Equity Transaction



Lincoln, England, May 8, 2006 -- Dynex Power Inc., a leading, independent power semiconductor company, today announced that it has received approval from the TSX Venture Exchange for the issuance of 137,939 Common Shares to certain directors of the Company. These shares are being issued in lieu of fees payable to these directors of the Company for the period from July 1, 2005 to December 31, 2005 at an effective price of $0.2955 per share pursuant to the Company’s outside directors’ share plan.

The outside directors’ share plan was adopted and approved by the shareholders of the Company at the annual and special shareholders’ meeting of the Company on June 4, 2002. The aggregate number of shares available for issuance was increased by 350,000 common shares at the annual and special shareholders’ meeting of the Company on June 3, 2004.



About the Company

Dynex is one of the world’s leading suppliers of specialist, high power semiconductor products. Dynex Semiconductor Ltd is its main operating business and is based in Lincoln, England in a facility housing the fully integrated silicon wafer fabrication, assembly and test, sales, design and development operations. Dynex designs and manufactures high power bipolar discrete semiconductors, power modules, including insulated-gate bipolar transistors (IGBTs), and high power electronic assemblies. Dynex products are used world wide in power electronic applications including electric power generation, transmission and distribution, marine and rail traction drives, aircraft, electric vehicles, industrial automation and controls. The company continues to produce and sell certain high reliability integrated circuits (ICs) for use in specialist applications led by its proven radiation hard Silicon-on-Sapphire products for space and nuclear applications.



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
Chief Financial Officer

Dynex Power Inc.
Tel: UK +44 1522 500500
Email: paul_taylor@dynexsemi.com



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