Neo Material Technologies enters into automatic share purchase plan

TORONTO, June 29 /CNW/ - Further to the press release dated June 2, 2010 announcing the commencement of a normal course issuer bid ("NCIB"), Neo Material Technologies Inc. ("Neo" or the "Company") (TSX: NEM) announced today that it has entered into a pre-defined plan (the "Automatic Purchase Plan") with its designated broker to allow for the repurchase of shares at times throughout its NCIB when Neo would ordinarily not be permitted to repurchase shares in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Subject to certain parameters and restrictions, Neo's broker may repurchase shares under the Automatic Purchase Plan during the times referred to above, provided that the broker is not, at such times, in possession of undisclosed material information about the Company. The Automatic Purchase Plan commences on July 1, 2010 and terminates on September 30, 2010.

Forward Looking Statements

From time to time, the Company may publish forward-looking statements relating to such matters as expected financial performance, business prospects, technological developments, and development activities and like matters. These statements involve risk and uncertainties, including but not limited to the risk factors previously described. Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. Neo Material Technologies Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.

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, and other rare metals and their compounds through its Magnequench and 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's rare metals products are primarily used in the wireless, LED, flat panel, solar and catalyst industries. Neo is headquartered in Toronto, Canada.

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For further information: Michael Doolan, Chief Financial Officer, [phone], ext.335, Website: www.neomaterials.com, e-mail: [email protected]; Ali Mahdavi, Investor Relations, [phone], ext. 225, e-mail: [email protected]