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Neo Material Technologies announces CDN$10 million private placement

TORONTO, April 18 - Neo Material Technologies Inc. (TSX: NEM) (the "Company") announced today that it has entered into an agreement with Hong
Kong based CEF (Capital Markets) Limited for a placement of 2,375,297 million shares at a trailing 10-day volume weighted average price of CDN$4.21 per share, for gross proceeds of CDN$10 million.

CEF (Capital Markets) Limited is 50% indirectly owned by Cheung Kong (Holdings) Limited and 50% indirectly owned by Canadian Imperial Bank of Commerce (CIBC). Cheung Kong (Holdings) Limited is the flagship of the Ceung Kong Group which has business operations in 56 countries and employs about 260,000 staff worldwide. In Hong Kong alone, members of the Cheung Kong Group include eight listed companies with a combined market capitalization of approximately US$103 billion (as at March 31, 2008). Mr. Li Ka-shing is the Chairman of Cheung Kong (Holdings) Limited.

"Neo has been active in China since its inception 15 years ago and we see a number of strategic growth opportunities there in the coming years" noted Constantine Karayannopoulos, President and CEO of Neo Material Technologies. "In that regard we welcome CEF as a new shareholder of Neo and we will pursue
opportunities to work with CEF and its shareholders."

The use of proceeds from the private placement will be for debt repayment towards the Company's senior credit facility. The transaction is expected to close on or before April 30, 2008, and is subject to regulatory approvals.

About Neo Material Technologies
Neo Material Technologies is a producer, processor and developer of neodymium-iron-boron magnetic powders, rare earths and zirconium based engineered materials and applications through its Magnequench and AMR Performance Materials business divisions. These innovative products are essential in many of today's high technology products. Magnequench's neo powders are used to produce bonded magnets, generally used in micro motors, precision motors, sensors and other applications requiring high levels of magnetic strength, flexibility, small size and reduced weight. Rare earth and zirconium applications include catalytic converters, computers, television display panels, optical lenses, mobile phones and electronic chips. The Company is headquartered in Toronto, Canada and has approximately 1,300 employees in 16 locations, across 10 countries.

For further information: Michael Doolan, Chief Financial Officer, (416) 367-8588, ext.335, Website: NEO Material Technologies Inc., e-mail: info@neomaterials.com; Ali Mahdavi, Investor Relations, (416) 962-3300, ext. 225, e-mail: amahdavi@genoa.ca

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