LAVAL, QUEBEC--(Marketwire - February 27, 2008) - Warnex Inc. (TSX: WNX) today announced that it will be restating its financial statements for prior years due to a non cash accounting error in the presentation of the debt component of the 2002 and 2004 debentures. In accordance with CICA Handbook Section 3861, "Financial Instruments - Disclosure and Presentation", the value of the liability component of the convertible debentures has been properly determined, at the time of their issuance, but the difference between the liability component carrying amount at inception and the principal amount of the debentures should have been treated as a debt discount and therefore accreted over the life of the instrument through periodic charges to income using the effective interest rate method of amortization. Accordingly, the liability component of the debentures was understated by $615,255 as at December 31, 2006, and the 2006 net loss was understated by $311,597 or $0.01 per share.
