CDEX Inc. Security Division Announces First Shipment to New Distributor in Japan.

TUCSON, Ariz. -- CDEX Inc. (OTCBB:CEXI) today announced a definitive agreement with ACE Trading Company Limited to be a distributor for the CDEX ID2 Meth Scanner(TM). Ace Trading, based in Tokyo will distribute the Scanner to law enforcement, customs facilities, schools, home inspection and other markets throughout Japan where methamphetamine detection is critical.

Steve Schmidt, VP of CDEX's Security Division noted, "The use of methamphetamine has increased dramatically in Japan in recent years. There are an estimated 1-2 million users and Meth is the most widely used illegal drug in the country. The ID2 Meth Scanner(TM) is an important, new, front-line tool in the battle against methamphetamine manufacturing and use and the subsequent adverse public safety and health effects associated with passive exposure to the precursor chemicals and residual drug product."

Mr. Schmidt went on to say, "We are very excited to have Ace Trading Company as part of our global distribution network. ACE is a major player in the Japanese marketplace, with extensive business relationships across the country. Mr. Goro Adachi, CEO of ACE Trading, was for many years an executive of one of the world's largest trading companies. ACE works closely with many of the largest Japanese trading companies. CDEX's strategy to develop a comprehensive global distribution network is being realized and establishing a significant presence in Japan is an important step forward. This increasing network of marketing representatives enables CDEX to expand sales going forward. We will continue to identify, qualify and sign distributors in the North American market and in selected international markets where methamphetamine abuse is taking a toll on human societies."

ABOUT CDEX

CDEX is a technology development company, currently manufacturing and globally distributing advanced chemical detection products, based on its patented Enhanced Photoemission Spectroscopy technology. Currently CDEX is organized to serve two critical markets - Medication Safety and Security. The Valimed System[TM] product line is providing life-saving validation of high-risk medications and returned narcotics in healthcare facilities and pharmacies. The ID2 Meth Scanner[TM] product line is a revolutionary new tool in the global battle against the growingpublic safety threat of methamphetamine abuse and its toxic impact on the general public. Both of these product lines substantiate the superiority of our technology and also demonstrate the accuracy, reliability, speed and ease of use. CDEX expects to advance its proprietary technology to serve additional markets and applications. Corporate headquarters and R&D facilities are located in Tucson, Arizona with an international office in Paris, France.