Delphax Technologies Announces Workforce Reduction and Estimates for Fourth Quarter

MINNEAPOLIS—Sept. 28, 2006—Delphax Technologies Inc. (Nasdaq: DLPX), announced today that it is reducing its workforce by approximately 15 percent, or 52 positions, as part of its adjustment to lower- than-expected fiscal 2006 sales. As previously announced, net sales declined by 5 percent in the first nine months of fiscal 2006 compared with the same period in fiscal 2005, and 14 percent in the third quarter of fiscal 2006 compared with the third quarter of fiscal 2005. The workforce reduction touches all areas of the company, but is primarily focused on engineering and manufacturing personnel.