TORONTO, Oct. 17 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) announced today it has agreed to a Cdn $500,000 financing agreement that will be used to commercialize Urokinase, advance the Company's Vaccine Technology and expand development of its Sperm Sexing Technology. The financing is in the form of a 9% convertible debenture in an arms length transaction with an existing shareholder. The principal amount of the debenture is convertible into common shares at $0.90 per share for a period of 10 years. The Company has an existing debenture with the same terms. The transaction is subject to TSX acceptance or approval. "We have made progress on all three major product initiatives and this funding provides us with the working capital needed to reach our next milestones," said President and CEO William J. Gastle. "In our 2006 fiscal year we expanded development of the Sperm Sexing Technology, obtained third party validation of our Vaccine Technology and acquired the manufacturing plant that will lead to increased core business revenues and a $70 million capacity to supply Urokinase." "Shareholders can expect milestones on all three products in the coming year," said Mr. Gastle. About Microbix Microbix specializes in developing proprietary biological technologies and commercializing them through global partners. The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Established in 1988, Microbix is headquartered in Toronto. This press release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including the risks associated with failure to develop and commercialize, non-adoption, resistance to business model for commercialization and implementation; risk associated with operation and maintenance of facilities; risks associated with commercializing technology; and risks associated with margins due to appreciation of the Canadian dollar, among others. These forward-looking statements represent the Company's judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements. %SEDAR: 00004220E