Med BioGene Reports Financial Results for the Second Quarter 2008

Erinn Broshko, MBI's Chief Executive Officer stated, "Med BioGene has made tremendous progress over the last quarter. On the business front, we closed the first tranche of our public offering in extremely difficult financial markets and expect to close our second and final tranche in the beginning of September. With these funds, we are planning to begin in 2009 commercialization in the United States of LungExpress Dx(TM), the world's first gene expression-based prognostic test for lung cancer. Also, on the leadership front, Dr. Heiner Dreismann, former CEO of Roche Molecular Systems and one of the top industry experts in the field of molecular diagnostics, joined our board of directors. The last quarter of 2008 will be extremely exciting for us as we prepare for the launch of our commercial operations."

Recent Scientific and Business Highlights

- August 7, 2008: MBI closed the first tranche of a public offering of 10,699,667 units for gross proceeds of $1.6 million. The offering was facilitated through the filing by MBI on July 23, 2008 of a short form prospectus qualifying the units. Each unit was issued at a price of $0.15 and consists of one common share and one-half of one transferable common share purchase warrant. MBI anticipate completing the second and final tranche of the offering in early September 2008.

- May 29, 2008: MBI announced that Heiner Dreismann, Ph.D. joined the board of directors. Dr. Dreismann is the former Chief Executive Officer of Roche Molecular Systems (Roche), a division of F. Hoffmann-La Roche Ltd. Under Dr. Dreismann's leadership as Chief Executive Officer, Roche evolved into one of the world's leading molecular diagnostics companies with annual sales to over US $1 billion and the significant expansion of their portfolio of diagnostic tests and hardware. Dr. Dreismann is one of the top industry experts in the field of molecular diagnostics. He has a proven track-record of leadership in the development, commercialization and adoption of molecular diagnostics and brings to MBI valuable experience and industry contacts.

- April 23, 2008: MBI and the University Health Network (UHN) announced that they have entered into license and collaboration agreements providing MBI with exclusive, world-wide rights to develop and commercialize a critical prognostic test for early stage non-small-cell lung cancer developed by UHN. The test will be marketed under MBI's trade name LungExpress Dx(TM).

LungExpress Dx(TM) is a gene expression-based assay that provides valuable information regarding each patient's prognosis for survival to more effectively guide treatment and improve the selection of patients for chemotherapy following surgical removal of their cancerous tumour.

- April 3, 2008: MBI announced results from a recent study that confirm the previously demonstrated high accuracy rate of LymphExpress Dx(TM) v.1.0. LymphExpress Dx(TM) v.1.0 is a gene expression-based array being developed to diagnose the most common subtypes of lymphoma, together representing approximately 90% of all Non-Hodgkin B-cell and Hodgkin lymphomas. In the study, LymphExpress Dx(TM) v.1.0 achieved an overall accuracy rate of over 90%.

Second Quarter 2008 Financial Results

MBI reported a net loss of $616,733 ($0.02 per share) in the second quarter of 2008 compared to a net loss of $741,421 ($0.03 per share) in the second quarter of 2007. The decrease was a result of reduced stock-based compensation expenses and reduced laboratory supply expenses partially offset by increased business development costs as MBI continues to develop and execute upon its commercialization strategy.

Research and Development

Research and development expenses were $261,101 in the second quarter of 2008 compared to $399,867 in the second quarter of 2007. The decreased expenses are related to reduced stock-based compensation of $53,482 and reduced laboratory supply expenses of $155,134, partially offset by the increases associated with the University Health Network development expenses of $125,625 compared to the second quarter of 2007. The change was associated with reduced internal scientific development and use of gene expression arrays and related reagents, and an increased focus on product development through external collaborations. MBI received a further $29,247 of government contributions to support its cardiovascular disease program during the quarter.

General and Administrative

General and administrative expenses were $336,207 in the second quarter 2008 compared to $326,020 in the second quarter 2007. The increase was due primarily to increased business development activities in the quarter.

Liquidity and Capital Resources

At June 30, 2008, MBI had $397,079 of cash and cash equivalents as compared to $1,367,820 at December 31, 2007. The decrease relates primarily to operational cash outflows during the quarter with no offsetting financing activities. Subsequently, on August 7, 2008, MBI closed the first tranche of its previously announced public offering for gross proceeds of $1.6 million. MBI anticipates completing the second and final tranche of the Offering in early September 2008.

About Med BioGene

MBI is a life science company focused on the development and commercialization of genomic-based clinical laboratory diagnostic tests for cancer and cardiovascular disease. MBI develops these tests by identifying the genes, known as "biomarkers", which indicate the presence of disease. The development of these tests is the first step towards personalized medicine and will replace the conventional "one drug fits all" approach to disease management.

Certain statements in this news release contain forward-looking information under applicable Canadian securities legislation. Words such as "anticipates", "believes", "estimates", "expects", "intends", "may", "plans", "projects", "will", "would" and similar expressions are intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Forward looking information includes, but is not limited to, that with respect to future profits, future product revenues, future operations and plans, the use of proceeds from financings, the timing of studies or clinical trials and the completion date for studies or clinical trials and the prospects for negotiating partnerships or collaborations and their timing. This forward-looking information is only a prediction based upon MBI's current expectations, and actual events or results may differ materially. MBI may not actually achieve the plans, intentions or expectations disclosed in its forward-looking information. Forward-looking information is subject to known and unknown risks and uncertainties and is based upon uncertain assumptions that could cause MBI's actual results and the timing of events to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on this forward-looking information, which speaks only as of the date of this news release. MBI's forward-looking information does not reflect the potential impact of any future partnerships, collaborations, acquisitions, mergers, dispositions, joint ventures or investments that MBI may make. All forward-looking information is qualified in its entirety by this cautionary statement and MBI undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date of this news release, other than as required by applicable law.

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