Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Announces Update on Strategic Discussions
Business Expectations Continue to Improve
Lincoln, England, September 27, 2007 - Dynex Power Inc., a
leading, independent power semiconductor company, today announced that
discussions had halted with the unnamed non-financial firm that had been
referred to in the Company’s press releases of June 15th and August 17th
of this year. The discussions had been about the desirability of that
firm acquiring a substantial but not majority interest in the Company by
means of a private placement of treasury shares.
Dr. Paul Taylor,
President and Chief Executive Officer commented, “With these discussions
now halted, we can pursue other strategic options, which have been under
consideration. The improving financial performance of the Company
enables us to move forward with growing optimism.”
Dr.
Taylor continued, “Let me use this announcement to provide a brief
update of our current operating performance. We now believe that our
third quarter net profits will be materially better than the
expectations I announced at our Annual General Meeting and which we
commented on in our press release of June 15th. Based on the strength of
our order book, we also expect a strong fourth quarter. In addition to
our improving operating results, the Company made early repayment of
the £500,000 loan from Directors that we reported in our press release
of May 30th, and we anticipate that as part of our financial planning we
will further reduce the level of our indebtedness during this year.
Lastly, we remain committed to reducing our financial risk as well as
funding the capital expenditure programmes also discussed at our AGM and
commented on in our last two quarterly financial reports.”
Forward Looking Statements
In commenting on its expectations, the
Company cautioned existing and potential shareholders 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 quarter ended June 30th, 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. Dynex disclaims any intention or obligation to update or
revise any forward looking statement whether as a result of new
information, future events or otherwise.
About the Company
Dynex is one of the world’s leading, independent suppliers of specialist, high
power semiconductor products. Dynex Semiconductor Ltd is its 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.
For more information:
Dr. Paul Taylor
President and Chief Executive Officer
or
Bob Lockwood
Finance Director and Chief Financial Officer
Dynex Power Inc.
Tel: UK +44 1522 500 500
Email: investorrelations@dynexsemi.com
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