AWM Investment Company - News Release

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AWM Investment Company, Inc. ("AWM") announced today that three funds advised by it have acquired additional shares ("Shares") of Xebec Adsorption Inc. ("Xebec") in open market transactions.

AWM advises the Special Situations Fund III QP, L.P. ("SSFQP"), the Special Situations Cayman Fund, L.P. (the "Cayman Fund") and the Special Situations Private Equity Fund, L.P. (the "Private Equity Fund"). SSFQP, the Cayman Fund and the Private Equity Fund together will be referred to as the "Funds".

On April 24, 2012, 54,500 Shares of Xebec at a price of CDN $0.2479 per share were purchased by the Funds. SSFQP purchased 38,414 Shares, the Cayman Fund purchased 12,144 Shares and the Private Equity Fund purchased 3,942 Shares. The above purchases represent approximately 0.1% of the outstanding shares.

Following this purchase, the Funds own 12,083,103 Shares of Xebec, and warrants to purchase 2,500,000 Shares, representing approximately 34.8% of the outstanding Shares assuming the exercise of all warrants held by the Funds. SSFQP holds 8,516,646 Shares and warrants to purchase 1,750,000 Shares, the Cayman Fund holds 2,692,430 Shares and warrants to purchase 550,000 Shares, and the Private Equity Fund holds 874,027 Shares and warrants to purchase 200,000 Shares. The Funds own the securities, and AWM controls such securities.

AWM holds the Shares on behalf of the Funds for investment purposes. AWM and/or the Funds may purchase additional Shares and/or warrants and/or other securities, or dispose of Shares and/or warrants and/or other securities, of Xebec from time to time as circumstances warrant. AWM and the Funds may be considered to act jointly or in concert. AWM relied upon Section 100 of the Securities Act (Ontario) - Normal Course Purchase Exemption.

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