IPICO - ANNOUNCEMENT RESPECTING PRIVATE PLACEMENT

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

BURLINGTON, ON, Sept. 28 /CNW/ - IPICO Inc. (TSX-V:RFD) announced today its intention to issue convertible secured debentures and warrants to a related party for gross proceeds of up to $500,000. This private placement is the final $500,000 tranche of the private placement announced in IPICO's press release of June 30, 2010. Closing of this tranche remains subject to approval of the TSX Venture Exchange and satisfaction of other conditions. The net proceeds of the Offering will be used for general corporate purposes.

The debentures will be designated as Series C debentures, will mature on September 30, 2012 and will be convertible at the option of the holder into common shares of IPICO at a conversion price of $0.10 per share. The debentures will bear interest at a rate of 12% per annum, payable upon maturity or earlier repayment. The debentures will be secured by a general security interest over all of the assets and undertaking of IPICO and will rank in priority to the outstanding Series B debentures of IPICO. Each purchaser of Series C debentures will receive on issue 10,000 common share warrants for each $1,000 debenture purchased. Each warrant will entitle the holder to purchase one common share of IPICO on or before September 30, 2012 at a price of $0.10 per share.

This news release contains certain forward-looking statements pertaining to IPICO's proposed private placement, including statements as to the anticipated time of closing. Any statements in this news release that are not statements of historical fact may be considered to be forward-looking statements. Written words such as "may", "will", "expect", "believe", "anticipate", "estimate", "intends", "goal", "objective", "seek", "attempt", or variations of these or similar words, identify forward-looking statements. These statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including those detailed from time to time. Actual results could differ materially from those contained in the forward-looking statements and are based on current expectations that involve a number of risks and uncertainties, including, but not limited to, the inability to close the private placement as a result of the failure to settle and enter into definitive documentation or the failure to receive regulatory or other approvals on terms acceptable to IPICO and the subscribers. These and other risks may be detailed from time to time in IPICO's periodic reports filed on SEDAR (www.sedar.com).

ABOUT IPICO Inc.

IPICO Inc. is an RFID solution supplier with operations in Canada, USA, South Africa, Europe, and Asia. IPICO produces smart labels, tags and readers based on the IP-X communication protocol. Its products are designed to conform to regulatory requirements in most major geographical regions, to excel at long read range, fast multi-read anti-collision and high thru-beam read-speeds of dynamic tag populations, and to allow for multi-reader rollout in close proximity. IPICO's products are used to optimize the management of products, equipment, people, animals and processes within the logistics and other value chains. For further information, go to www.ipico.com.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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For further information: Gordon Westwater, President & CEO, IPICO Inc., Tel: [phone], Email: [email protected]