2006 PRESS RELEASES

ROCKVILLE, Md. — December 27, 2006 – CDEX Inc. (OTCBB: CEXI) announced today that it is implementing its plan to centralize its administrative and corporate functions in Tucson, Arizona. The move is expected to begin in early 2007 and be concluded by the end of the first quarter. The move does not impact the Company's special shareholder meeting scheduled for January 9, 2007. Information regarding the transition will be posted on the Company's web site at www.cdex-inc.com.

"This move has been on our planning horizon for a number of years and we are pleased that we are able to implement it now," said Dr. BD Liaw, Chairman of the Board of Directors. "It will improve communications and increase the company's overall operational efficiency and effectiveness. Mr. Jim Griffin, the current President and CEO of CDEX, has indicated to the board that he will not relocate to Tucson as a matter of personal choice for him and his family. Mr. Griffin will step down as President and CEO effective December 28, 2006. The board wishes to express its thanks to Mr. Griffin for his leadership of the company and wishes him and his family the very best in their future endeavors," said Dr. Liaw.

Mr. Tim Shriver will act as the interim President and CEO until such time as a permanent President and CEO is recruited into the company. Mr. Malcolm Philips, past President and CEO, has agreed to become a special advisor in Tucson to the board and Mr. Shriver to assist with the transition and move.

"I was part of and fully support this decision by the board of directors," said Jim Griffin, President and CEO of CDEX Inc. "Consolidating the operations of the company in one location is in the best interests of CDEX. I will assist the Board and company during the upcoming transition period in any way possible."

"The technology upon which this company was founded had its roots in Tucson, Arizona, and I am pleased that we are now able to implement this move," said Tim Shriver, the new President and CEO. "We appreciate the foundation that Jim has laid for us and will be calling upon his help during this transition period."

Provides System and Methods for Detection and Identification of Chemical Substances

ROCKVILLE, Md. — December 27, 2006 — CDEX Inc. (OTCBB: CEXI) announced today that the US Patent and Trademark Office (USPTO) has issued patent number 7,154,102 to CDEX Inc. The patent relates to system and method for detection and identification of chemical substances.

Patent Abstract

The invention provides a system and method utilizing, among other things, fluorescence spectroscopy in the ultra-violet portion of the electromagnetic spectrum to determine chemical species and concentrations. The basic measuring system includes optics, a spectrograph, a detector, and an energy source ("head" components), along with a computer and control electronics and power source capable of generating and detecting unique fluorescence signatures for individual and unique mixtures of chemical substances including, for example, prescribed and/or compounded medications, alcohol products, food types, synthetic drugs, narcotics, perfumes, liquids, and the like.

"The issuance of this patent is a major milestone achievement for CDEX and affirms both our core technology and our approaches to applying it to a system and method that can be used to detect and identify chemical substances across multiple applications and settings," said Jim Griffin, CEO of CDEX Inc. "It will strengthen our ValiMed product offering and allow us to create future value for the company by applying this patent to the development of life safety products for the healthcare, security, and brand protection markets."

ROCKVILLE, MD–- CDEX Inc. (OTCBB:CEXI) announced today that it will host a conference call to discuss the Proxy Statement that was filed with the SEC on Wednesday, November 15, 2006. The call will be held on Wednesday, November 22, 2006 at 10:30 a.m. EST.  The format of the call will be a five minute overview of the proxy, followed by a 10-15 minute question-and-answer session.  All interested parties are encouraged to listen to the live conference call.

Conference Call Details:  The moderator will begin accepting calls from participants 10 minutes prior to the start of the call.  You will need to identify yourself and state if you are an investor or a member of the general public before being connecting into the conference call.

Dial In:
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International:  416-640-3404sp; &n
Conference ID: CDEX Proxy Statement Conference Call

ROCKVILLE, MD.,– October 3, 2006 - CDEX Inc. (OTCBB:CEXI) announced today that the U.S. Federal District Court in Denver, Colorado has reviewed and approved the Stipulation to Dismiss that was filed in the Court on September 29, 2006 as part of a settlement agreement reached between ASD and CDEX with regards to Civil Action No. 06-CV-426-RDB-CBS. Today, the Court entered an Order of Dismissal with Prejudice and vacated all pending actions before the Court. This action by the Court brings to a final end the patent infringement lawsuit that was filed by ASD against CDEX. It also brings to a final close CDEX’s counterclaims of invalidity and unenforceability that the company filed in response to ASD’s lawsuit.

“This case was settled in a manner that was fair and equitable to both parties, while preserving the company’s rights and protecting the interests of our shareholders” said, Jim Griffin, CDEX President and CEO.

Paves way for Order of Dismissal by the Court

ROCKVILLE, MD. –September 29, 2006- CDEX Inc. (OTCBB:CEXI) and Analytical Spectral Devices, Inc. announced today that they entered into a settlement agreement with regards to Civil Action No. 06-CV-426-RDB-CBS that was pending before the U.S. Federal District Court in Denver, Colorado.

As part of the Settlement Agreement, CDEX has been fully licensed under ASD’s patent for liquid pharmaceuticals. CDEX acknowledges the validity of ASD’s patent and such acknowledgement shall continue for as long as the license remains in effect. In consideration of the settlement agreement, both parties have agreed to dismiss their respective claims against each other. The terms and conditions of the settlement agreement are otherwise confidential.

“We believe the settlement agreement is fair and equitable to both parties and preserves the right of both companies to continue to develop and practice their respective intellectual property” said, Jim Griffin, CDEX President and CEO. “We believe the settlement agreement is fair and equitable to both parties, and we are pleased that the validity of ASD’s patent has been recognized." said Dave Rzasa, ASD CEO and President.

ValiMed Purchased to Verify Compounded Medication Doses, and Validate Narcotic Returns

ROCKVILLE, MD.,– September 20, 2006- CDEX Inc. (OTCBB: CEXI) announced today that Memorial Medical Center in Modesto, California has purchased the ValiMed Medication Validation System to perform end product testing of compounded intravenous medications, and validation of returned narcotics. The ValiMed Medication Validation System, developed by CDEX and distributed exclusively by Baxa Corporation, provides clinicians with a quick, cost effective, and simple tool to further ensure medication safety by verifying medications are correctly compounded.

In a process that takes only seconds, ValiMed uses patent pending technology to validate compounded doses of high-risk medications prior to dispensing to the patient care area. The solution creates an added level of safety in the medication dispensing process, and is also used to validate narcotic returns as well as identify counterfeit medications.

"We are pleased to welcome Memorial to the ValiMed family. Memorial is a community based organization," said Jim Griffin, President and CEO of CDEX Inc. “This affirms the value of ValiMed in all segments of the U.S. hospital market.”

ValiMed validates medications to ensure that the correct drugs, in the correct amounts, in the correct diluent have been added to the dose during the compounding process. The ValiMed Medication Validation System is distributed under an exclusive agreement with Baxa Corporation (www.baxa.com) of Englewood, Colorado.

About Baxa Corporation

Baxa, a customer-focused medical device company, provides innovative, solution-based technologies for fluid handling and delivery. Its systems and devices promote the safe and efficient preparation, handling, packaging, and administration of fluid medications. Privately held, Baxa Corporation has subsidiaries and sales offices in Canada and the United Kingdom; direct representation in Belgium, Denmark, Finland, France, Germany, Luxembourg and The Netherlands; and distribution partners worldwide. Further information is available at www.baxa.com.

ValiMed Selected to Verify Compounded Medication Doses, and Validate Narcotic Returns

ROCKVILLE, MD. – September 19, 2006 - CDEX Inc. (OTCBB: CEXI) announced today that Tucson Medical Center in Tucson, Arizona has selected the ValiMed Medication Validation System to perform end product testing of compounded intravenous medications, and validation of returned narcotics. The ValiMed Medication Validation System, developed by CDEX and distributed exclusively by Baxa Corporation, provides clinicians with a quick, cost effective, and simple tool to further ensure medication safety by verifying medications are correctly compounded.

In a process that takes only seconds, ValiMed uses patent pending technology to validate compounded doses of high-risk medications prior to dispensing to the patient care area. The solution creates an added level of safety in the medication dispensing process, and is also used to validate narcotic returns as well as identify counterfeit medications.

"We are excited to begin working with Tucson Medical Center." said Jim Griffin, President and CEO of CDEX Inc. “It will be beneficial to have a client in the backyard of our science laboratory in Tucson.” ValiMed validates medications to ensure that the correct drugs, in the correct amounts, in the correct diluent have been added to the dose during the compounding process. The ValiMed Medication Validation System is distributed under an exclusive agreement with Baxa Corporation (www.baxa.com) of Englewood, Colorado.

About Baxa Corporation

Baxa, a customer-focused medical device company, provides innovative, solution-based technologies for fluid handling and delivery. Its systems and devices promote the safe and efficient preparation, handling, packaging, and administration of fluid medications. Privately held, Baxa Corporation has subsidiaries and sales offices in Canada and the United Kingdom; direct representation in Belgium, Denmark, Finland, France, Germany, Luxembourg and The Netherlands; and distribution partners worldwide. Further information is available at www.baxa.com.

ValiMed Unit purchased to Verify Compounded Medication Doses, and Validate Narcotic Returns

ROCKVILLE, MD.,– September 18, 2006 - CDEX Inc. (OTCBB: CEXI) announced today that Primary Children’s Medical Center in Salt Lake City, Utah has purchased a ValiMed Medication Validation System to perform end product testing of compounded intravenous medications in its pharmacy, and validation of returned narcotics from the operating room suites and nursing units. The ValiMed Medication Validation System, developed by CDEX and distributed exclusively by Baxa Corporation, provides clinicians with a quick, cost effective, and simple tool to further ensure medication safety by verifying medications are correctly compounded.

In a process that takes only seconds, ValiMed uses patent pending technology to validate compounded doses of high-risk medications prior to dispensing to the patient care area. The solution creates an added level of safety in the medication dispensing process, and is also used to validate narcotic returns as well as identify counterfeit medications.

"We are pleased to add Primary Children’s to the growing number of renowned healthcare organizations that are using ValiMed." said Jim Griffin, President and CEO of CDEX Inc. “We have experienced significant interest from pediatric hospitals as well as large university teaching hospitals. These institution are on the leading technological edge and recognize the value of ValiMed to improve patient safety by decreasing medication errors involving compounded high-risk medications.”

ValiMed validates medications to ensure that the correct drugs, in the correct amounts, in the correct diluent have been added to the dose during the compounding process. The ValiMed Medication Validation System is distributed under an exclusive agreement with Baxa Corporation (www.baxa.com) of Englewood, Colorado.

About Primary Children’s Medical Center

Primary Children's Medical Center is the pediatric center serving five states in the Intermountain West - Utah, Idaho, Wyoming, Nevada and Montana. The 232-bed facility is equipped and staffed to treat children with complex illness and injury. PCMC is owned by Intermountain Healthcare, a non-profit health care system. In addition, it is affiliated with the Department of Pediatrics, University of Utah, integrating pediatric programs, research and training for childhood problems. The hospital is located in a beautiful facility designed to meet the special needs of children and their families. For more information, visit www.intermountainhealthcare.org/xp/public/primary.

About Baxa Corporation

Baxa, a customer-focused medical device company, provides innovative, solution-based technologies for fluid handling and delivery. Its systems and devices promote the safe and efficient preparation, handling, packaging, and administration of fluid medications. Privately held, Baxa Corporation has subsidiaries and sales offices in Canada and the United Kingdom; direct representation in Belgium, Denmark, Finland, France, Germany, Luxembourg and The Netherlands; and distribution partners worldwide. Further information is available at www.baxa.com.

Patent provides system and method for detecting a chemical substance using x-ray fluorescence

ROCKVILLE, MD.,–September 14, 2006- CDEX Inc. (OTCBB: CEXI) announced today that the US Patent and Trademark Office (USPTO) has issued patent number 7,106,826 to CDEX Inc. The patent is a system and method patent for detecting chemical substances using x-ray fluorescence.

Patent Abstract

A system and method for detecting a substance using x-ray fluorescence is disclosed. The detected substances may be explosives or controlled substances that have a specific chemical fluorescent signature. An energy source transmits an x-ray beam at a target. The target may be in a container or under a surface. The beam interacts with the target to produce fluorescent energy. An x-ray detector is at an angle relative to the energy source and gathers the fluorescent energy. The angle differs according to the physical configuration of the system. A portable embodiment will have a different angle than a stationary embodiment. A cooling mechanism cools the x-ray detector. The fluorescent energy is analyzed and processed by a multi-channel analyzer and a computer. The computer determines whether the fluorescent energy from the target matches known fluorescent energies of specific substances. If the substance is detected, appropriate indications are made to prevent damage or acceptance of the substance.

“The issuance of this patent affirms one of our unique approaches to detecting chemical substances that can be applied to explosive trace detection, medication and drug detection, and chemically based suspicious substances,” said Jim Griffin CEO of CDEX Inc. “ We are very pleased to add this patent to our intellectual property portfolio as it will underpin value creation for the company by allowing us to apply our scientific research to the development of life safety products for the healthcare, security, and brand protection markets.”

ROCKVILLE, MD.,–September 13, 2006- CDEX Inc. (OTCBB:CEXI) announced today that it will release its third quarter results on Wednesday, September 13, 2006, and host a conference call to discuss the results on Friday, September 22, 2006 at 4:30 p.m. EDT. The format of the call will be a 30 minute management discussion of the results for the quarter, followed by a 30 minute question-and-answer session. All interested parties are encouraged to listen to the live conference call or the live or archived Web Cast.

Conference Call Details: The moderator will begin accepting calls from participants 10 minutes prior to the start of the call. You will need to identify yourself and state if you are an investor or a member of the general public before being connected into the conference call.

Dial-In:
USA/Canada: 1-866-322-1159
International: 416-640-3404
Conference ID: CDEX Investors Conference

Web Cast Details: You will need to register for the Web Cast. Simply type or copy the URL shown below into your browser and follow the registration prompts. The Web Cast will be archived and made available to listen to for 7 days after the conference call.

URL: http://events.onlinebroadcasting.com/cdex/092206/index.php.

CDEX to supply three units as part of Pilot Test and Field Evaluation Program

ROCKVILLE, MD.,–August 30, 2006- CDEX Inc. (CEXI.OB) announced today that it has received notification to proceed with the Missouri State Highway Patrol to conduct a Pilot Test and Field Evaluation Program. Under the program, CDEX will provide three of its Illicit Drug Detector prototypes for evaluation by the Missouri State Highway Patrol. The units will be evaluated for their effectiveness and efficacy in detecting trace amounts of methamphetamine. CDEX anticipates that the Pilot Test and Evaluation Program will be concluded by the end of 2006.

Three ValiMed Units purchased to Verify Compounded Medication Doses, and Validate Narcotic

ROCKVILLE, MD.,–August 15, 2006- CDEX Inc. (OTCBB: CEXI) announced today that Texas Children’s Hospital has purchased three ValiMed systems to perform end product testing of compounded intravenous medications in its pharmacy departments, and validation of returned narcotics in its operating room suites and nursing units. The ValiMed Medication Validation System, developed by CDEX and distributed exclusively by Baxa Corporation, provides clinicians with a quick, cost effective, and simple tool to further ensure medication safety by verifying medications are correctly compounded. Texas Children's Hospital is an internationally recognized full-care pediatric hospital located in the Texas Medical Center in Houston. One of the largest pediatric hospitals in the United States, Texas Children's Hospital is dedicated to providing the finest possible pediatric patient care, education, and research. In a process that takes only seconds, ValiMed uses patent pending technology to validate compounded doses of high-risk medications prior to dispensing to the patient care area. The solution creates an added level of safety in the medication dispensing process, and is also used to validate narcotic returns as well as identify counterfeit medications.

"The Pharmacy Leadership at Texas Children's Hospital continues to look for opportunities to enhance our safety strategies. Since the majority of our medications are compounded, the ValiMed technology will provide an additional layer of safety and enable us to verify accuracy of multiple doses in a more timely fashion.", said Karen Gurwitch, Director of Pharmacy at Texas Children’s.

"We feel privileged to add Texas Children’s Hospital to our growing list of internationally recognized healthcare organizations that are using ValiMed." said Jim Griffin, President and CEO of CDEX Inc. “Texas Children’s recognizes the value of ValiMed and has purchased multiple ValiMed units for use across their hospital pharmacy compounding, medication dispensing, and return verification processes.” ValiMed validates medications to ensure that the correct drugs, in the correct amounts, in the correct diluent have been added to the dose during the compounding process. The ValiMed Medication Validation System is distributed under an exclusive agreement with Baxa Corporation (www.baxa.com>) of Englewood, Colorado.

About Texas Children’s Hospital

Established in 1954 and located in the heart of the Texas Medical Center in Houston, Texas Children's Hospital is committed to providing the finest possible patient care, education and research. The nonprofit hospital is ranked among the top five pediatric hospitals nationwide by both U.S.News and World Report and Child. For more information, visit the website at www.texaschildrenshospital.org.

About Baxa Corporation

Baxa, a customer-focused medical device company, provides innovative, solution-based technologies for fluid handling and delivery. Its systems and devices promote the safe and efficient preparation, handling, packaging, and administration of fluid medications. Privately held, Baxa Corporation has subsidiaries and sales offices in Canada and the United Kingdom; direct representation in Belgium, Denmark, Finland, France, Germany, Luxembourg and The Netherlands; and distribution partners worldwide. Further information is available at www.baxa.com.

Company Prepares to Enter Homeland Security Market

ROCKVILLE, MD.–June 30, 2006– CDEX, Inc. (OTCBB: CEXI) announced today that it has filed an apparatus patent application for its Portable, Hand-held methamphetamine and Illicit Drug Detector in preparation for its entry into the Homeland Security market. The apparatus is capable of detecting trace amounts of methamphetamine, other illicit drugs, and other chemical substances. The apparatus incorporates CDEX core technology and will provide first responders (i.e., law enforcement, fire fighters, and HAZMAT teams) with a cost effective, real time method of conducting non-contact, non-destructive, field tests of suspicious substances.

Detection is accomplished by scanning a spectral beam across a surface to detect the presence of trace amounts of contamination left behind by methamphetamine, other illicit drugs, or other chemical substances. The device has the look and feel of a traffic radar gun, is battery operated, is capable of wired or wireless up/down loading of data, time and date stamps of all tests, and stores all test results for later retrieval.

“The development, protection, and practice of our intellectual property are vital to value creation for the company,” said Jim Griffin, President and CEO of CDEX. “The innovative application of our intellectual property to life-safety products such as the Portable, Hand-held Methamphetamine and Illicit Drug Detector Illicit is a key success factor in meeting market demand and executing our growth strategy.”

CDEX core technology is highly scalable. The company is currently developing products that incorporate the same patent pending technology currently used in existing CDEX products for other market segments. All current CDEX products are based on applying the same underlying photoelectric technology for which the company has five additional patents pending. CDEX has also filed corresponding international applications for each of these patents.

CDEX Adds 14 New Medication Signatures

ROCKVILLE, MD.–June 27, 2006– CDEX, Inc. (OTCBB:CEXI) announced today that it has added fourteen medications to the signature library of the ValiMed Medication Validation System. This brings the total formulary of medication and drug signatures in the library to 47 signatures.

These new signatures include narcotics and antibiotics and expand the system’s ability to validate additional high risk medications and therefore increase the value of the ValiMed (™) Patient Safety Solution. The new antibiotics that have been added to the signature library have been documented in the literature as being involved in medication errors. The additional narcotics that have been added will broaden the scope of the ValiMed (™) Impaired Clinician Solution and the list includes the first liquid oral medication.

“The addition of these new signatures demonstrates the company’s commitment to value enhancement through additional research and development, and is yet another example of the implementation of the company’s growth strategy. CDEX will continue to expand the formulary of its signature library by adding new medications that will add value by allowing our clients to validate an ever increasing number of medications and drugs. The continuing expansion of new medication signatures not only adds value to our clients’ medication validation efforts, but also provides CDEX with additional revenue potential,” stated Jim Griffin, President and CEO of CDEX, Inc.

The ValiMed medication library currently consists of 47 narcotics and patient care medications, and is scheduled to be expanded to more than 140 medications, doses and diluents, by the end of the year. The improved capabilities and expansion of the medication signature library will enable the ValiMed(™) Medication Validation System to become an essential tool for improving patient safety.

Baxa Corporation demonstrates the next-generation ValiMed System for medication safety at booth no. 729 at the American Society of Health-System Pharmacists Summer Meeting June 25 - 28, 2006 in Orlando, Fla. The next-generation ValiMed Technology offers the same benefits as the original system, with additional reporting features and a smaller sample requirement.

ENGLEWOOD, Colo., June 26 /PRNewswire/ -- Baxa Corporation announces the release of the next-generation ValiMed Medication Validation System at the summer meeting of the American Society for Health-System Pharmacists. The ValiMed System validates medications and concentrations; allowing users to detect counterfeit products for brand protection, provide quality assurance for compounded products, and detect narcotic loss. The ValiMed System ensures patient safety in real time, by verifying that medications are correctly compounded.

ValiMed features patent-pending technology that validates in seconds the strength of compounded doses of high risk medications prior to dispensing. Verification of compounding accuracy and sterilization is a requirement under USP 27-NF 22 Chapter < 797 >, which regulates the compounding of sterile products. The ValiMed System can play a key role in demonstrating the safety of compounded sterile products (CSPs) under these requirements.

The updated version of the ValiMed System -- shown for the first time at the ASHP meeting -- incorporates reports used to comply with USP 797 requirements. It also features a modified disposable, requiring a reduced sample volume for testing. "This next-generation ValiMed System addresses customer requests," notes Product Manager Mark Thrasher. "It's more robust and the smaller sample requirement more easily accommodates current pharmacy work flows."

During the meeting, Baxa representatives will demonstrate the ValiMed System's capabilities in their booth, number 729. Pharmacists will see first-hand how the system ensures the accuracy of their compounded solutions and helps them meet both USP 797 verification and JCAHO requirements for patient safety.

About Baxa Corporation

Baxa, a customer-focused medical device company, provides innovative, solution-based technologies for fluid handling and delivery. Its systems and devices promote the safe and efficient preparation, handling, packaging, and administration of fluid medications. Privately held, Baxa Corporation has subsidiaries and sales offices in Canada and the United Kingdom; direct representation in Belgium, Denmark, Finland, France, Germany, Luxembourg and The Netherlands; and distribution partners worldwide. Further information is available at www.baxa.com.

ValiMed Leads the Way

ROCKVILLE, Md.--(BUSINESS WIRE)--June 16, 2006--CDEX, Inc. (OTCBB:CEXI.OB - News) announced today that it recorded the highest quarterly revenue in the history of the company in the fiscal second quarter, ending April 30, 2006. Revenue was $351,038 as compared to $23,860 during the second fiscal quarter of 2005. The increase of $327,177 (or 1,371%) resulted from the delivery of ValiMed (TM) medication verification systems to Baxa Corporation. Baxa represents the CDEX ValiMed product line, exclusively in the USA and Canada.

During the period from January 2006 through April 2006, CDEX successfully managed its production plan for the ValiMed medication verification system, that included, but was not limited to the following: completing the ValiMed design package; developing a new proprietary cuvette; identifying, qualifying, and setting up contract manufacturers for ValiMed and the new proprietary cuvette; developing new medications and drugs signatures for the ValiMed production units, completing product certification testing and obtaining the TUV mark, and delivering the first production units to Baxa on-time and on-budget.

"The shareholders, management, and staff of CDEX take great pride in what has been accomplished. This achievement represents the culmination of several years of research and development, determination, and perseverance by a lot of very dedicated people to bring ValiMed to market. We are proud of what we have achieved, and awed by the opportunities that are before us. The introduction of ValiMed into the hospital pharmacy market is a significant contribution to society. The ValiMed medication verification system gives clinicians and healthcare professionals a quick, cost effective, and simple tool to further ensure medication safety by verifying that medications are correctly compounded. ValiMed can make a difference to hospital patients by preventing injuries and the loss of life due to medication errors," said Jim Griffin, President and CEO of CDEX, Inc

Affirmative Defenses and Counterclaims Filed Against Analytical Spectral Device

ROCKVILLE, MD.—May 2, 2006– CDEX, Inc. (CEXI.OB) announced today that it has answered the lawsuit filed against it by Analytical Spectral Devices, Inc., (ASD) that alleged that CDEX had infringed, and had caused others to infringe, a patent assigned to ASD. In its response filed in the Colorado District Court in Denver, Colorado, on May 1, 2006, CDEX set forth various affirmative defenses to ASD’s claim of patent infringement, and issued a counterclaim for declaratory judgment. CDEX’s claims include requests for relief based on inequitable conduct before the United States Patent and Trademark Office, non-infringement, invalidity and unenforceability.

“As a matter of policy, CDEX has developed its own intellectual property rights and respects the intellectual property of others,” said Jim Griffin, President and CEO of CDEX. “We believe this lawsuit is totally without merit and we will aggressively defend our rights to practice our own technology, which has been the result of many years of independent research and development.”

ROCKVILLE, MD.–April 25, 2006– CDEX, Inc. (CEXI.OB) announced today that it has delivered the first ValiMed Medication Validation System production units in the initial installment of the systems purchased by Baxa Corporation (www.baxa.com) under their reseller agreement with CDEX (www.cdex-inc.com). The ValiMed Medication Validation System is designed to verify narcotic disposal and validate pharmaceuticals, including concentration and diluents, in patient medications. The first production units were prepared to verify 33 medications (nine narcotics and 24 medications) for both doses and diluents.

The information obtained from CDEX beta partners has permitted the company to incorporate significant changes to the system from the original design. The current configuration can validate narcotic disposal of such narcotics as Fentanyl at 50 mcg/ml and differentiate patient care drugs such as Epinephrine at 0.005 mg/ml and Epinephrine at 0.01 mg/ml.

“The delivery of the first ValiMed production units marks a significant milestone in the CDEX growth strategy. The shipment of the ValiMed systems has positioned the company to focus on overall market penetration for the ValiMed product. Our proven production capabilities coupled with our recent TUV certification has opened significant opportunities for us both in the U.S. and overseas,” stated Jim Griffin, President and CEO of CDEX, Inc.

The ValiMed medication library currently consists of 33 narcotics and patient care medications, and is scheduled to be expanded to more than 140 medications, doses and diluents, by the end of the year. ValiMed’s improved capabilities and an expanding medication library will ensure that the system becomes an essential tool for improving patient safety.

CDEX is Authorized to use TUV Mark on ValiMed

ROCKVILLE, MD.–April 10, 2006– CDEX, Inc. (CEXI.OB) announced today that it received permission from TUV Rheinland of North America Inc. (www.us.tuv.com) to apply the TUV mark to the ValiMed™1.0 system after completing an exhaustive three month product certification testing and quality assurance inspection of the manufacturing processes. The ValiMed medication verification system, which was developed by CDEX (www.cdex-inc.com) and is exclusively distributed by Baxa (www.baxa.com), gives clinicians a quick, cost effective, and simple tool to further ensure medication safety by verifying that medications are correctly compounded.

The notification from TUV marks the completion of exhaustive testing of the production model of the ValiMed system to verify compliance with applicable standards governing safety and emissions standards. The evaluation and testing was conducted to the same requirements and standards utilized by UL for the U.S. market, ULC for the Canadian market, CE for the European Union market, and CB Scheme for other international markets. The testing and evaluations were conducted in conjunction with Elliott Laboratories (elliottlabs.com) for compliance with Electromagnetic Testing for Electrical Equipment for Measurement, Control and Laboratory Use in accordance with EN 61326:1997 including A1: 1998 and A2: 2001. Safety tests and evaluations were conducted by TUV in accordance with IEC 61010-1 / EN 61010-1.

“The notification from TUV granting CDEX authorization to use the TUV mark on the ValiMed product represents the final phase in completing the first production run of our ValiMed system. Obtaining TUV certification for ValiMed represents a milestone achievement in the execution of our growth strategy and opens up significant world markets to ValiMed that go beyond the USA, Canada and the European Union. The efforts of the CDEX team and our manufacturing partner Mastek-InnerStep have resulted in the development and production of a unique life-safety product for use by healthcare professionals throughout the world,” said Jim Griffin, President and CEO of CDEX, Inc

ValiMed System Verifies Compounded Medications and Doses, and Validates Narcotic Returns

ROCKVILLE, MD. & MINNEAPOLIS, MN –April 3, 2006– CDEX, Inc. (CEXI.OB), announced today that Children’s Hospitals and Clinics of Minnesota has selected the ValiMed™ system to perform end-product testing of compounded intravenous medications in its pharmacy departments, and validation of returned narcotics in its operating room suites and nursing units. The ValiMed medication verification system, which was developed by CDEX (www.cdex-inc.com) and is exclusively distributed by Baxa (www.baxa.com), gives clinicians a quick, cost effective, and simple tool to further ensure medication safety by verifying medications are correctly compounded.

Children’s of Minnesota is the eighth-largest children’s health care organization in the U.S., with 319 staffed beds at its two hospital campuses in St. Paul and Minneapolis, Minnesota. An independent, not-for-profit health care system, Children’s of Minnesota provides care through over 13,000 inpatient visits and more than 200,000 emergency room and other outpatient visits each year.

In a process that takes only seconds, ValiMed uses patent pending technology to validate compounded doses of high-risk medications prior to dispensing. The solution creates an added level of safety in the medication dispensing process, and is also used to validate narcotic returns as well as identify counterfeit medications.

"At Children’s, our top priority is the safety of our patients. With the ValiMed product we will enhance our patient and medication safety by verifying compounded medication and narcotic returns right in the pharmacy," said Christine Koentopp, Director of Pharmacy at Children’s Hospitals and Clinics of Minnesota.

"We are pleased that Children’s of Minnesota has joined a list of nationally recognized healthcare organizations that have adopted this new health safety measure, and is the first healthcare system in Minnesota to use ValiMed," said Jim Griffin, CEO for CDEX. “It is gratifying to see ValiMed being accepted as a life safety and quality control product by healthcare professionals across the nation. The number of prestigious healthcare organizations that are adopting ValiMed to verify compounded medications and doses, and validate narcotic returns continues to grow.”

The ValiMed solution uses light energy and a library of unique spectral fingerprints to validate drugs in solution. The device validates that the correct drugs in the correct amounts have been added to the dose during the compounding process. The ValiMed Medication Validation System is distributed under an exclusive agreement with Baxa Corporation (www.baxa.com) of Englewood, Colorado.

About Children’s Hospitals and Clinics of Minnesota

Children’s of Minnesota has received national recognition for its work in patient safety, including a recent ranking as one of only eight pediatric hospitals among the “50 Exceptional U.S. Hospitals” by the Leapfrog Group, a consortium of 165 national employers that provide health coverage to 36 million employees. For more information about Children’s of Minnesota, visit www.childrensmn.org.

ROCKVILLE, MD– March 21, 2006 –CDEX (CEXI.OB) released the results of the 2006 annual meeting of shareholders held on Friday, March 17, 2006, at 10:00 a.m. ET at the Doubletree Hotel, 1750 Rockville Pike, Rockville, MD, 20852. CDEX reported the following results:

Stockholders approved each of the four proposals contained in the Proxy Statement, as follows:

Proposal 1: Both nominees for election to the Board of Directors, Mr. James O. Griffin and Mr. Donald W. Strickland, were approved by stockholders (For: 29,783,688 Against: 89,253);

Proposal 2: an amendment to the certificate of incorporation to allow for an increase of the number of authorized share of Class A Common Stock to 50,000,000 shares, passed (For: 25,675,793 Against: 3,126,465);

Proposition 3: an amendment to the 2003 Stock Incentive Plan to increase the number of shares of Common Stock available for issuance thereunder by 3,500,000, passed (For: 12,769,813 Against: 3,133,335);

Proposal 4: the ratification of the appointment of Aronson & Company as independent auditors for the fiscal year ending October 31, 2006, passed (For: 29,160,179 Against: 679,179).

Mr. Charles Purcer of ADP acted as the Inspector of Elections for the stockholders meeting and certified all votes.

ValiMed Verifies Compounded Medications and Doses and Validates Narcotic Returns

ROCKVILLE, MD & DETROIT, MI– March 16, 2006 –Henry Ford Hospital has selected the ValiMed system to perform end-product testing of compounded intravenous medications in its pharmacy departments, and validation of returned narcotics in its operating room suites and nursing units. The ValiMed medication verification system was developed by CDEX (CEXI.OB) to give clinicians a quick, cost effective, and simple tool to further ensure medication safety by verifying medications are correctly compounded.

Henry Ford is a 903-bed tertiary care hospital, education and research complex in Detroit. The hospital is recognized for clinical excellence and innovations in the fields of cardiology and cardiovascular surgery, neurology and neurosurgery, orthopaedics and rehabilitation, organ transplantation, and treatment for prostate, breast and lung cancers, among others. Its Emergency Department is a Level 1 trauma center. Henry Ford is the flagship hospital for Henry Ford Health System, whose mission is to improve human life through excellence in the science and art of health care and healing.

In a process that takes only seconds, ValiMed uses patent-pending technology to validate compounded doses of high-risk medications prior to dispensing. The solution creates an added level of safety in the medication dispensing process, and is also used to validate narcotic returns as well as identify counterfeit medications.

"At Henry Ford, our top priority is patient safety. The ValiMed product strengthens our dispensing process by adding another level of safety to ensure compounded medications are accurately verified and narcotic returns are properly handled in the pharmacy," said Ed Szandzik, Director of Pharmacy at Henry Ford Hospital.

"We are pleased to be working with Henry Ford Hospital, yet another nationally recognized healthcare organization that has chosen to deploy ValiMed," said Jim Griffin, CEO for CDEX. “Partners like Henry Ford are valuable as CDEX continues its strategic growth in the healthcare sector.”

The ValiMed by CDEX solution uses light energy and a library of unique spectral fingerprints to validate drugs in solution. The device validates that the correct drugs in the correct amounts have been added to the dose during the compounding process.

Developed by CDEX, the ValiMed System was chosen by All Children’s to Verify Compounded Medications and Doses, and Validate Narcotic Returns

ROCKVILLE, MD-- March 14, 2006 – CDEX Inc., announced today that All Children’s Hospital in St. Petersburg, Florida has selected the ValiMed Medication Validation System to perform end-product testing of compounded intravenous medications in its pharmacy departments, and validation of returned narcotics in its operating room suites and nursing units. The ValiMed System, developed by CDEX (CEXI.OB), gives clinicians a quick, cost- effective, and simple tool to ensure medication safety by verifying medications are correctly compounded. All Children’s Hospital, a 216-bed teaching hospital affiliated with the University of South Florida College of Medicine, is a leading center for pediatric treatment, education, and research.

In a process that takes only seconds, the ValiMed System uses patent-pending technology to validate compounded doses of high-risk medications prior to dispensing. The system documents the accuracy of the medication dispensing process, and is used to validate narcotic returns as well as identify counterfeit medications.

"We are pleased that a nationally recognized institution, such as All Children’s Hospital of Florida, is now using our ValiMed System for medication validation,” said Jim Griffin, President and CEO of CDEX.

The ValiMed System uses light energy and a library of unique spectral fingerprints to validate drugs in a solution. The device validates that the correct drugs in the correct amounts have been added to the dose during the compounding process. The ValiMed Medication Validation System is distributed under an exclusive agreement with Baxa Corporation of Englewood, Colorado.

ROCKVILLE, MD – March 2, 2006 – CDEX, Inc. (CEXI.OB), a developer of innovative technologies for detecting and validating chemical substances, announced today that its 2006 annual meeting of shareholders will be held on Friday, March 17, 2006, at 10:00 a.m. ET at the Doubletree Hotel, 1750 Rockville Pike, Rockville, MD, 20852 / telephone: 301-468-1100.

Proxy statements and proxy cards were mailed out on February 17, 2006. Proxies are to be returned to the address shown on the proxy card by no later than 11:59 p.m., March 16, 2006.

CDEX, Inc. taps Charles C. Foster to serve as new Director of Business Development for Homeland Security

ROCKVILLE, MD – February 27, 2006 – CDEX, Inc. (CEXI.OB), a developer of innovative technologies for detecting and validating chemical substances, announced that Charles C. Foster has been appointed to the position of Director of Business Development, Homeland Security. Mr. Foster comes to CDEX from a background in law enforcement, sales and business development for security technologies.

At CDEX, Mr. Foster will be responsible for building the company’s sales channels by developing a network of strategic partners consisting of; prime government contractors and lead system integrators, and resellers for the company’s Homeland Security and commercial security business. The core technologies developed by CDEX for chemical substance detection and identification have numerous applications for law enforcement and defense, including illicit drug and explosive materials detection, as well as anti-counterfeiting solutions for brand safety and consumer protection.

“CDEX is very pleased to welcome Chuck Foster on board,” said Mr. James Griffin, President & CEO of CDEX, Inc. “His experience in public safety and security technologies will be invaluable to CDEX as it seeks to expands its business into the Homeland Security and commercial security sectors. Mr. Foster’s addition to the CDEX management team is an important step in the furtherance of our growth strategy for CDEX.”

Mr. Foster has had a nearly 30-year career in law enforcement, sales, and security technologies business development. Mr. Foster began his career as a police officer for New Castle County, Delaware, before entering the private sector in 1983 to pursue business development initiatives for a range of technology and security businesses, including, ADT, Controlled Access, Maris Equipment, and Infographic Systems. Prior to joining CDEX, Mr. Foster was Technical Relationship Manager for Cernium, Inc., the developer of intelligent video analytics systems. There he helped to establish the company’s market-leading position within video security, grow direct sales, and develop strategic relationships with integrators, VARs, and partnering businesses.

ROCKVILLE, MD – FEBRUARY 16, 2006 – CDEX, Inc. (CEXI.OB) announces that Mr. George E. Dials, a CDEX Director since 2001, has been named President and General Manager of the National Nuclear Security Administration’s (NNSA) Y-12 National Security Complex in Oak Ridge, Tennessee operated by BWX Technologies (BWXT). Mr. Dials assumes responsibility effective February 20, 2006, and will continue his work with the CDEX Board.

In a February 6, news release, BWXT President and COO Mr. John A. Fees commented on the appointment: “George brings the experience necessary to manage and operate this nuclear weapons complex. For more than five years, BWXT has had a positive influence on Y-12’s operations. With George as part of our management team, it is a testament to our unyielding commitment to the Y-12 facility, employees and the DOE.”

Mr. Dials has spent nearly 30 years in the energy and nuclear industries, most recently serving as president and COO of a private hazardous waste disposal facility. Previously, he served as the president and general manager for TRW Environmental Safety Systems management and operations of the Yucca Mountain Project. His career has also included leadership positions with ICF Kaiser International, and the Department of Energy’s Carlsbad and Idaho Falls Offices. Mr. Dials entered the nuclear and energy industries after a ten-year career in the U.S. Army, where he served as an airborne ranger infantry officer in Germany, Vietnam, and Korea. Mr. Dials earned a Silver Star and Bronze Star for Valor in combat operations in Vietnam. As an Army nuclear weapons specialist, he was assigned to the Los Alamos National Laboratory for research on Army nuclear weapons planning and development. Mr. Dials holds an M.S. in nuclear engineering and an M.S. in political science from the Massachusetts Institute of Technology, and a B.S. in engineering from the United States Military Academy, West Point, New York.

BWXT, headquartered in Lynchburg, VA, has a long history in nuclear manufacturing and operations, both in the DOE and at its unique, highly secure, privately owned and operated nuclear manufacturing and laboratory facilities. Supplying the U.S. government and commercial clients with nuclear products and services for over 50 years, BWXT has unparalleled experience in nuclear safeguards and security. BWXT is responsible for the operations of the DOE’s National Nuclear Security Administration’s Pantex Plant in Texas and Y-12 National Security Complex in Tennessee, along with nuclear operations at the Idaho National Laboratory. BWXT has more than 11,300 employees in 11 states and is a subsidiary of McDermott International, Inc. (NYSE: MDR).

ROCKVILLE, MD – February 16, 2006 – CDEX, Inc. (CEXI.OB), a developer of innovative technologies for detecting and validating chemical substances, received a notification of allowance from the U.S. Patent and Trademark Office for Patent Application Publication Number 20030128804, entitled "System and Method for Adapting a Software Control in an Operating Environment." The patent applies to a system and method developed by CDEX for detecting substances--such as explosives or controlled substances. The technology exposes target substances to an x-ray energy beam and then analyzes and compares the released fluorescent energy to a database of unique energy signatures of known substances. CDEX anticipates issuance of the patent in the spring of 2006.

“Protection of our intellectual property is a key part of our ongoing plan for growth," said Jim Griffin, president and CEO of CDEX. “We are pleased that the US Patent office has recognized the uniqueness of our technology.”

All current CDEX products, such as the ValiMed™ medication validation unit used by hospitals throughout the U.S., are based on applying the same underlying photoelectric technology for which the company has, in addition to this recently announced patent, four additional patents pending. CDEX has also filed corresponding international applications for each of these.

The CDEX ValiMed System offers clinicians a simple and cost-effective tool to ensure medication safety by verifying that medications are correctly compounded. The ValiMed System also validates narcotic returns. ValiMed is sold through the Baxa Corporation, which serves as the exclusive distributor in the United States and Canada of ValiMed Impaired Clinician Solution, ValiMed Regulatory Compliance Solution, and ValiMed Patient Safety Solution.

CDEX core technologies are highly scalable. The company is currently developing products that incorporate the same patent pending technologies currently employed in existing CDEX products for other market segments, including:

1. Security and Public Safety - Identification of substances of concern (e.g., explosives, illegal drugs, chemical/biological weapons, and the detection of counterfeit drugs and medications to assist in the protection of the nation's pharmaceuticals supply); and

2. Healthcare - Validation of substances and quality assurance (e.g., validation of prescription and compounded medications to provide for patient safety, detection of the diversion of narcotics and controlled substances returned from operating room suites to the operating room pharmacy, and detection of counterfeit drugs and medications); and

3. Brand Protection - Detection of counterfeit or sub-par products for brand protection (i.e., quality assurance inspection of incoming raw materials, outgoing final products, and products in the distribution channel).

CDEX Board of Directors Accepts Resignation of Two Directors, Appoints Two New Directors — Former Chairman of the Board of Directors Steps Down

ROCKVILLE, MD – February 6, 2006 – CDEX, Inc. (CEXI.OB), a public technology development company based in Rockville, Maryland, today announces that Mr. Malcolm Philips, Chairman of the Board of Directors, and Mr. John Knubel, Director, have submitted their resignations to the Board of Directors, effective February 3, 2006. The Board of Directors has accepted their resignations and has appointed James O. Griffin, President and CEO of CDEX, Inc., as an inside Director and Donald W. Strickland, an outside Director, to fill these two vacancies, and serve on the Board until such time as they stand for election at the company’s annual shareholder’s meeting on March 17, 2006. Dr. B. D. Liaw was elected by the Board to succeed Mr. Philips as Chairman of the Board of Directors.

“As Founder, President and CEO, and Chairman of the Board of CDEX, Mr. Philips provided guidance to the company during its difficult start up phase and was a consistent and steadying influence for the company during its transition to a public company. Malcolm leaves behind a strong management team, a strong Board of Directors, and a company poised for growth, all of which are the results of planned succession that he has been implementing during the past year,” said Dr. Liaw. “The Board of Directors thanks Mr. Malcolm Philips for his untiring leadership and unwavering commitment to CDEX over the past four years. As we salute Malcolm and bid him farewell, we wish him success in his pursuits of other interests, and we wish him and his family nothing but the very best in the future.”

“The Board also expresses its thanks for the service provided to it by Mr. John Knubel, who served as the chairman of our financial committee and was our Sarbanes-Oxley compliance consultant,” said Dr. Liaw.

“It is my pleasure to welcome Mr. Donald W. Strickland and Mr. James O. Griffin to our Board of Directors. Don brings a wealth of public company knowledge to our Board and we welcome his insights and experience,” added Dr. Liaw.

Mr. Strickland will serve as the chairman of the financial committee, replacing Mr. Knubel. Mr. Griffin will serve as Secretary of the Board, and a member of the financial committee.

About Donald W. Strickland

Mr. Donald W. Strickland, Director, comes to CDEX from a 30-year career in successfully developing businesses internationally for both large public companies and technology startups. He has held executive positions at Eastman Kodak Company and Apple Computer, including heading product development, manufacturing, and sales. In 1996 he became CEO of PictureWorks Technology, a technology start up, which he sold for $200M in 2000 to IPIX Corporation, a public company traded on the Nasdaq exchange. Thereafter, he served as President and CEO of IPIX through 2004, during which time he led the company through a major restructuring, focusing on the security markets and taking the company to profitability. Mr. Strickland holds a bachelor's degree in physics from Virginia Tech, a master's degree in physics from the University of Notre Dame, a master's degree in optics from the University of Rochester, a master's degree in management from the Stanford University and a law degree from George Washington University.

About James O. Griffin

Mr. James O. Griffin, President & Chief Executive Officer, has served in senior executive positions in the high technology security and defense electronic systems industries for more than 25 years. Throughout his career, Mr. Griffin has focused on commercializing emerging technologies--growing sales and establishing productive distribution channels. Mr. Griffin joined CDEX in 2005, originally as chief operating officer, from a background in both public and private enterprises in the U.S., with extensive experience establishing and heading the international business units of several multinationals, including Sentech, Simplex, and Cardkey Systems. Immediately preceding CDEX, at Cernium, Inc., Mr. Griffin served as vice president of federal systems sales where he founded the company’s Washington, DC office, and opened relationships with government agencies for the developer of security video analytics systems. Previously, as vice president and general manager for the IPIX Corporation, he launched the company’s security division, IPIX Security, and established a customer base that included the 2004 G-8 Summit for the IPIX line of mission critical security imaging systems. As managing director of Simplex Asia Ltd., Mr. Griffin led a nearly two-year transformation of the fire alarm manufacturer’s Asian operations and reversed a major operating loss. Under Mr. Griffin’s leadership, the security services division of Mosler Inc. added contracts with the New York Port Authority to upgrade the security systems in the three airports serving New York City. For Cardkey Systems, Mr. Griffin created the company’s international division, linking together worldwide distributors to form cohesive sales channels. Mr. Griffin holds an MBA from Pepperdine University and a B.S. in Electrical Engineering from California State University.

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 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.

CDEX ValiMed System Chosen by Mount Carmel West to Verify Compounded Medications and Doses, Validate Narcotic Returns, and Screen for Counterfeit Pharmaceuticals

ROCKVILLE, MD & COLUMBUS, OH — January 11, 2006 — Mount Carmel West Hospital has selected the CDEX (OTCBB:CEXI) ValiMed system to perform end-product testing of compounded intravenous medications in its pharmacy departments, and validation of returned narcotics in its operating room suites and nursing units. The CDEX ValiMed medication verification system was developed to give clinicians a quick, cost effective, and simple tool to further ensure medication safety by verifying medications are correctly compounded.

In a process that takes only seconds, ValiMed uses patent pending technology to validate compounded doses of high-risk medications prior to dispensing. The solution creates an added level of safety in the medication dispensing process, and is also used to validate narcotic returns as well as screen for counterfeit medications.

"Medication safety is our top priority at Mount Carmel and ValiMed enhances the safeguard procedures we currently have in place without adding additional resources. The ValiMed product offers us the opportunity to validate end-products being dispensed from the pharmacy and to validate returned narcotics," said Joe Melucci, Director of Pharmacy at Mount Carmel West.

"CDEX is very excited to be working with Mount Carmel to extend our new validation technology to a community hospital setting," said Jim Griffin, CEO of CDEX.

The CDEX ValiMed solution utilizes a discrete energy source to produce unique return photon signatures, which are referenced against a database of unique medication spectral fingerprints to validate pharmaceuticals. The device validates that the correct medications in the correct amounts have been added to the dose during the compounding process.

About Mount Carmel West

With a history of serving the community since 1886, Mount Carmel offers a broad range of healthcare services in the central Ohio region and treats more than a half million patients each year. The healthcare system includes three hospitals – Mount Carmel East, Mount Carmel West, and Mount Carmel St. Ann’s; outpatient services; home care; hospice care; home medical equipment services; an ambulance and mobile intensive care service; a community outreach program for the poor and under-served; a college of nursing; and a Medicare HMO. Mount Carmel is a member of Trinity Health, based in Novi, Michigan. For more information about Mount Carmel, visit the healthcare system's Website at www.mountcarmelhealth.com

New CEO to lead company’s growth strategy in the healthcare, homeland security, law enforcement, and brand protection markets

Rockville, MD -- January 3, 2006– CDEX Inc. (OTCBB: CEXI), the developer of innovative systems for substance detection and verification, announced that James O. Griffin has been named Chief Executive Officer, effective January 1, 2006. Mr. Griffin, who joined CDEX in 2005 as Chief Operating Officer, succeeds Malcolm H. Philips, who will continue as Chairman of the CDEX Board. CDEX (www.cdex-inc.com) is the developer of the ValiMed™ Medication Validation System, distributed by the Baxa Corporation and used by hospital pharmacies to improve patient safety and reduce medication error rates by validating compounded doses of high risk medications. Mr. Griffin, who has an extensive background in developing technology companies in the security industry, will lead the CDEX expansion of its product suite, the company’s entrance into new markets, and the establishment of funding initiatives.

“I look forward to leading the CDEX team as the company strengthens its position in existing markets, expands its product offerings, and leverages its core technologies for new applications in markets such as homeland security, law enforcement, and brand protection,” said James O. Griffin, CEO of CDEX, Inc. “CDEX is fortunate to have a winning combination of strong technologies, highly talented, creative, and devoted personnel, and a loyal investment community. Our vision at CDEX is to save and protect lives, property, and assets through the innovative application of technology for the betterment of society. Bringing this vision to life by building upon the foundation that has been laid by the original founders and investors, and all of the staff at CDEX is a tremendous opportunity and privilege for me.”

Prior to joining CDEX, Mr. Griffin served in senior executive positions in both public and private enterprises, including Cernium, Inc., a leading developer of intelligent video analytics systems, and the IPIX Corporation, where he launched IPIX Security, the company’s video surveillance division. Altogether, Mr. Griffin has more than 25 years of experience in the high technology security and defense electronic systems industries.

CDEX proprietary technologies enable real-time verification of substances s through a process that utilizes a discrete energy source to produce unique return photon signatures to authenticate or validate the substance in question, such as pharmaceuticals, illegal drugs, explosives, distilled spirits, etc. CDEX technologies have applications in a number of fields, including healthcare, where it is being employed to reduce medication error rates, and to reduce the theft of pharmaceutical narcotics. CDEX recently demonstrated its ValiMed™ System’s anti-counterfeiting capabilities at the annual mid-year meeting of the American Society of Health-Systems Pharmacists (Las Vegas, December 4-8, 2005), validating authentic Tamiflu and influenza vaccines and distinguishing these from counterfeit products in seconds using the ValiMed field-portable instrument.

In November 2005, Baxa Corporation, a leading medical device company with relationships with thousands of healthcare institutions, signed a strategic distribution agreement and made a significant investment in CDEX to secure the exclusive distribution rights for the CDEX ValiMed System for healthcare organizations in the United States and Canada. ValiMed is currently the chosen solution of a number of leading healthcare organizations, including the University of Maryland Health Center, the University of Michigan Health System, Texas Children’s Hospital, and the Maricopa Medical Center.

Under Mr. Griffin’s leadership, CDEX will begin implementation of its growth strategy that includes enlarging the company’s intellectual property portfolio, expanding research and development capabilities, accelerating the development and launch of new products, expansion of sales channels, entering selected international markets, setting up strategic business alliances for product development, manufacturing, and service and raising capital for the acquisition of new technologies.

“Jim Griffin’s vision and growth strategy for CDEX is fully supported by the CDEX Board of Directors,” said Malcolm Philips, Chairman of the CDEX Board. “We have been pleased to have Jim at CDEX as our COO, and look forward to his leadership as CEO.”