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ComnetiX Postpones Annual and Special Meeting Until February 2, 2007

18 January 2007

ComnetiX(TM) Inc. (TSX:CXI) today announced that it has decided to postpone the Annual and Special Meeting of Shareholders scheduled for January 19, 2007. Pursuant to paragraph 8 of the Interim Order of the Ontario Superior Court of Justice - Commercial List dated December 18, 2006, ComnetiX has the authority to postpone the date of the Annual and Special Meeting of Shareholders as it deems advisable and subject to the terms of the Arrangement Agreement. The meeting will be reconvened for Friday February 2, 2007 at 10 AM. The last date on which the meeting can be held under the terms of the Arrangement Agreement is February 5, 2007. The date fixed for delivery of proxies will be extended and ComnetiX will advise shareholders of that date in due course.


In its Short Form Analysis dated January 2, 2007, Institutional Shareholder Services of Canada Corp. ("ISS"), one of Canada's leading authorities on proxy voting and corporate governance issues, stated in response to the announced proposed bid by Bio-key International Inc. ("Bio-key") on December 21, 2006, "In view of the recent developments, we feel it would be prudent for shareholders to study the offer of Bio-key, when such offer is made. We therefore recommend that shareholders vote against this resolution (approving the Arrangement Agreement)." In its Proxy Alert dated January 11, 2007 in response to the increased offer by L-1 Identity Solutions Inc. referred to in the ComnetiX press release of January 10, 2007, ISS stated, "While we are encouraged by the amended L-1 offer, it remains a possibility that the Bio-key offer, if made, could be a superior offer. However, due to the lack of sufficient details, we are unable to provide further comments on the Bio-key offer. We keep our recommendation unchanged and will provide updates if warranted by further developments."


This morning Bio-key published a Notice of Offer to Purchase all of the outstanding common shares of ComnetiX in the Globe & Mail indicating that an Offering Circular dated January 17, 2007 would be mailed to ComnetiX shareholders. The Board of Directors of ComnetiX will consider the Bio-key offer and make its recommendation to the shareholders of ComnetiX as soon as possible to allow for review of its recommendation to shareholders prior to the reconvened meeting to be held on February 2, 2007.


Bernard Crotty, Chairman and CEO of ComnetiX stated "I think that the reasonable expectation of the shareholders of ComnetiX as a group is that they will have time to assess the bid that Bio-key said it will make, before voting on the L-1 transaction. This is how we interpret the recommendation of ISS and we feel that a postponement of the shareholders meeting is in the best interests of all parties at this time."


ComnetiX has not had an opportunity to review and consider the offer from Bio-key. Pending such review, the Board of Directors of ComnetiX has confirmed its unanimous approval of the revised arrangement with L-1 at US$1.05 per ComnetiX share in cash and its determination that the revised arrangement is fair to, and in the best interests of, ComnetiX, its shareholders and warrantholders.


ComnetiX advises shareholders to not deposit any common shares to the Bio-key offer, if and when it commences, and not to take any other action concerning the offer until shareholders have received further communications from the Board of Directors. After commencement of the offer, the Board of Directors will issue a Directors' Circular that will contain important information for shareholders, including the Board's recommendation regarding the offer.


About ComnetiX(TM) Inc (www.ComnetiX.com)


ComnetiX(TM) Inc provides secure identification and authentication solutions to both the public and private sectors throughout North America. ComnetiX offers multimode biometric identification solutions for use in areas such as applicant screening, financial services, health care, transportation, airlines and airports, casinos and gaming, and energy and utilities. Clients include American Airlines, Lehman Brothers, New York City Health and Hospital Corporation, New York State Division of Criminal Justice Services, Toronto Police Services Board, Boston Police Department and the Royal Canadian Mounted Police. ComnetiX is also Canada's premier applicant fingerprinting services company, facilitating tens of thousands of criminal background checks each year through its chain of ten offices across Canada. In addition, ComnetiX has established more than 40 applicant fingerprinting services locations throughout the United States.


Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement in this release containing words such as "believes," "plans," "expects" or "intends" and other statements that are not historical facts are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.


For further information: Investor Relations, Kelly Reid, ComnetiX Inc., (905) 829-9988, Investor.relations@comnetix.com

Source: newswire





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