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Listing: TSX Venture Exchange

Symbol: DNX


Dynex Announces Receipt of Interim Court Order for Proposed Plan of Arrangement

Special meeting of shareholders scheduled for October 23, 2008



TORONTO, Canada (October 1, 2008). Dynex Power Inc. (TSX VENTURE: DNX) ("Dynex"), one of the world’s leading independent suppliers of specialist, high power semiconductor products, today announced an update with respect to the proposed acquisition of control of Dynex by Zhuzhou CSR Times Electric Co., Ltd. (“Times Electric”) pursuant to a definitive arrangement agreement signed by both parties and announced on August 29, 2008.

On September 19, 2008 the Ontario Superior Court issued an interim order relating to the proposed plan of arrangement instructing Dynex as to the process to be followed for the special meeting of shareholders of Dynex which is scheduled for 10:00 a.m. (Toronto time) on October 23, 2008 at the Fairmont Royal York Hotel, 100 Front Street West, Toronto. Formal notice of the special meeting along with related materials will be mailed to all registered shareholders of Dynex this week and will also be made available on www.SEDAR.com.

The terms of the proposed plan of arrangement provide that a holder of Dynex common shares may elect to tender the Dynex common shares they hold to Times Electric. An election notice is included with the shareholder meeting materials to be mailed to all registered shareholders and will also be available on www.SEDAR.com. Any Dynex shareholder that wishes to tender Dynex shares to the transaction must complete and return the election notice as soon as possible and prior to 5:00 p.m. (Toronto time) on the later of (i) October 30, 2008 or (ii) the seventh day after the later of the date of the special meeting or any adjournment thereof. The form of election notice and the shareholder meeting materials set out further details of the transaction, the voting process and the tendering of shares.

The transaction is subject to certain other customary conditions, including receipt of regulatory approvals which includes maintaining Dynex’s status as a publicly-listed company on the TSX-V. The proposed transaction is expected to close at the end of October, shortly after the receipt of shareholder and court approvals. There can be no assurance that the proposed transaction will be consummated and as a result investors are cautioned against trading in Dynex common shares based on the foregoing.


About Dynex
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.


Forward Looking Statements
This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. There are a number of factors beyond the control of Dynex that could result in the termination of the proposed transaction.


The TSX-Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.


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



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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