CDEX and Baxa Sign Distribution Agreement.

ROCKVILLE, Md. -- CDEX Inc. (OTCBB:CEXI), developer of the ValiMed(TM) Medication Validation System and other innovative substance detection and verification systems, announces a strategic distribution agreement with Baxa Corporation, a leader in developing systems for preparing, handling, packaging, and administering liquid medications. Baxa will be the exclusive distributor of the CDEX ValiMed System for healthcare organizations in the United States and Canada.

The ValiMed System offers clinicians a simple and cost-effective tool to ensure medication safety by verifying that medications are correctly compounded. Its patent-pending technology identifies the medication and strengths to validate compounded doses of high risk medications prior to dispensing. The ValiMed device verifies medications in seconds and provides an added level of safety in the medication dispensing process. The ValiMed System also validates narcotic returns.

"The ValiMed sales required under the Baxa contract, coupled with existing sales and rentals, will solidify the CDEX presence in the medical market and more completely validate our technology for other markets," said Malcolm Philips, CDEX CEO and Chairman. "With Baxa's award-winning customer service and sales teams, we have moved toward that goal in the medical marketplace."

The agreement calls for purchase of a fixed number of ValiMed units by Baxa for two years, as well as goals that must be met in order to maintain the Baxa exclusive distribution rights.

"The ValiMed System fits with Baxa Corporation's mission to offer our customers innovative fluid medication devices that improve operations and increase medication safety. ValiMed is a great addition to our product line," said Greg Baldwin, Baxa Chairman and CEO.

CDEX's mission is to develop innovative technologies that assist in solving real world problems, then work with industry leaders to bring those products to market. For more than 30 years, Baxa Corporation has focused on developing systems and devices that streamline pharmacy operations, enhancing patient safety and improving efficiency.

About Baxa Corporation

Celebrating 30 years of business in 2005, Baxa Corporation is a Denver-based manufacturer of medical devices and systems for preparing, handling, packaging, and administering liquid medications. The company manufactures and markets a wide range of healthcare products for use in hospitals, critical care units and alternative-site pharmacies. Privately held, Baxa Corporation has subsidiaries and offices in Canada, the United Kingdom and Denmark, and distribution partners worldwide. Further information is available at www.baxa.com.

About CDEX Inc.

CDEX Inc. is a technology development company with a current focus on developing and marketing products using chemical detection and validation technologies. At present, CDEX is devoting its resources to two distinct areas: (i) identification of substances of concern (e.g., explosives and illegal drugs); and (ii) validation of substances for anti-counterfeiting, brand protection and quality assurance (e.g., validation of prescription medication; detection of counterfeit or sub-par products for brand protection; and quality assurance inspection of materials). CDEX is headquartered in Rockville, Maryland and has its primary research and development laboratory in Tucson, Arizona. For more information, visit www.cdex-inc.com and www.valimed.com.

Any statements made in this press release which contain information that is not historical are essentially forward-looking. Forward-looking statements can be identified by the use of words such as "expects," "plans," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. These statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, the ability of the Company to raise capital to finance the development of its chemical detection products, the effectiveness, profitability and the marketability of those products, the ability of the Company to protect its proprietary information, the establishment of an efficient corporate operating structure as the Company grows and, other risks detailed from time-to-time in our filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statements.