For Immediate Release

Xymox Technologies Acquires

Xymox Technologies, Inc., a leading manufacturer of electronic interface products with headquarters in Milwaukee, Wisconsin, announced today that it has acquired Paneltec, Inc. Paneltec is also a leading manufacturer of electronic interface products with headquarters in Santa Clara, California.

Peter Sognefest, President and CEO of Xymox Technologies, has announced that Paneltec will operate as a wholly-owned subsidiary with its own President, Sales, Marketing, Engineering, Finance, and Manufacturing departments. Products from Paneltec will continue to be sold under the Paneltec brand name through its current sales representative network, and Long Nguyen, Paneltec’s President, Founder, and CEO will continue to run the company.

“This acquisition will lead to one of the largest companies in the membrane switch and electronic interface industry. Sales of the combined companies will exceed $25 million in Fiscal 1998 and grow to $30 million in Fiscal 1999,” stated Jeffrey Cohen, Chief Financial Officer of Xymox Technologies.

Long Nguyen, President of Paneltec stated, “We are very pleased to become a part of the Xymox group. We see excellent synergy in design, technology, and manufacturing processes. In addition, the combined market presence of Paneltec and Xymox will enhance the ability to jointly continue to develop unique product features and capabilities with our valued suppliers.”

Xymox manufactures membrane switches, graphic overlays, and electronic interface sub-systems in Milwaukee, Wisconsin and Tijuana, Mexico. Its products are used in the appliance, medical, industrial controls, telecommunications, gasoline dispensing, and instrumentation markets.

Paneltec, Inc. manufactures membrane switches, graphic overlays, and electronic interface sub-systems in Santa Clara, Phoenix, Arizona and Vietnam. Paneltec’s products complement those of Xymox. The market share of the combined companies in markets such as Industrial Controls, Appliance, and Instrumentation will increase significantly with the acquisition.