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CDEX Manufacturing Contract NEWS

http://www.cdex-inc.com/pr/20306.html

Mastek-InnerStep, Inc. Secures Manufacturing Contract With CDEX, Inc.
- BusinessLinc Program Key to Success -

TUCSON, AZ (February 3, 2006) – CDEX, Inc. (CEXI.OB), a public technology development company based in Rockville, Maryland, has selected Mastek-InnerStep, Inc. of Tucson, a high-technology supplier of electro-mechanical assembly and engineering, to serve as the contract manufacturer for its ValiMed™ devices. The ValiMed™ system is used for medication validation by hospital pharmacists to verify that patients are receiving the correct compounded medications in the correct dosages.

Through CDEX’s contract arrangement, Mastek-InnerStep will provide turnkey production services, including manufacturing engineering, project management, pre-production manufacturing, and electronic assembly.

“In terms of employment, we are up about 20% over the past year, and we expect to grow by about another 20 to 25% in the next year,” said Dave Duncan in Business Development at Mastek-InnerStep. “We have 36 employees, and are now looking to add 8 to 10 over the next year. This is a big win for us.”

“In bidding this project, our first call was to the BusinessLINC Program at Tucson Regional Economic Opportunities, Inc. (TREO) in order to secure specialty vendors for specific applications. BusinessLINC provided several local vendors for each application and we chose qualified vendors to be part of the New Product Introduction (NPI) team.”

Selected for this project were The Metal Man for laser sheet metal fabrication and forming, Anderson Painting for technical powder coating, Schnipke Southwest for plastic injection molding, and Whitmark Packaging for shipping carton design, and TAG Engineering for machining.

"We're thrilled to have our contract manufacturing based in Tucson. One of the key advantages is having a resource like BusinessLinc to identify vendor capabilities for further expansion. This gives us production capacity for our ValiMed product line and fulfills a critical milestone in the implementation of our growth strategy, " said Jim Griffin, CEO of CDEX.

About TREO
Tucson’s newest regional economic development entity was created to provide insight, infrastructure, resources and development efforts that will ensure ongoing economic prosperity throughout the Southern Arizona region. TREO’s programs support a regional economic development environment that allows all businesses (micro, small and large) to grow and thrive. For more information, visit www.treoaz.org

About CDEX, Inc.

CDEX Inc. is a technology development company with a current focus on developing and marketing products using chemical detection and validation technologies. At present, CDEX is devoting its resources to two distinct areas: (i) identification of substances of concern (e.g., explosives and illegal drugs for homeland security); and (ii) validation of substances for anti-counterfeiting, brand protection and quality assurance (e.g., validation of prescription medication and detection of counterfeit or sub-par products for brand protection). ValiMed is one line of CDEX products for the healthcare market. CDEX is headquartered in Rockville, Maryland with its research and development laboratory in Tucson, Arizona. For more information, visit www.cdex-inc.com.

About Mastek-InnerStep

Mastek-InnerStep is a locally owned contract manufacturer in Tucson. With core capabilities in electronics assembly, Mastek provides a range of services from printed circuit board assembly to complete fulfillment, shipping completed, tested and warranted, products to the end user. Mastek customers comprise diverse industry segments including audio-visual, laboratory, testing & analysis equipment, medical instrumentation and military/aerospace projects. For more information, visit www.innerstep.com



Any statements made in this press release which contain information that is not historical are essentially forward-looking. Forward-looking statements can be identified by the use of words such as "expects," "plans," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. These statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, the ability of the Company to raise capital to finance the development of its chemical detection products, the effectiveness, profitability and the marketability of those products, the ability of the Company to protect its proprietary information, the establishment of an efficient corporate operating structure as the Company grows and, other risks detailed from time-to-time in our filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statements.