Boulder, Colo., — CDEX Inc. 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 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.

About ASD

Founded in 1990, Analytical Spectral Devices manufactures cost-effective, precision, transportable, field-portable, and on-line laboratory-quality Vis/NIR spectrometers, spectroradiometers, spectrophotometers and corresponding software and accessories. ASD’s instruments perform well in a range of environmental conditions, in and outside the laboratory, and have applications in pharmaceutical, nutraceutical, analytical chemistry, mining, grain, food and dairy, remote sensing, pulp and paper industries world-wide. For more information, please contact Amanda Griffin, Analytical Spectral Devices, 5335 Sterling Dr., Suite A, Boulder, CO, 80301; 303/444-6522, 303/444-6825 (fax); www.asdi.com.