Med BioGene Inc. Reports Financial Results for 2006

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 30, 2007) - Med BioGene Inc. (TSX VENTURE:MBI) today reported its financial results for 2006.

Recent Scientific and Business Highlights

- March 27, 2007: MBI entered into an agreement with Fraser Mackenzie Limited to act as exclusive lead agent in connection with a private placement of $4 million of units. Subject to demand, the amount raised under the Private Placement may prior to closing be increased above $4 million.

Each unit is expected to be issued at a price of $0.50 per unit and will consist of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to purchase one common share at a price of $0.80 for a period of 18 months following the closing date of the Private Placement. The Private Placement is scheduled to close on or about May 23, 2007. The Private Placement is subject to customary conditions, including acceptance by the TSX Venture Exchange.

- March 19, 2007: MBI entered into a research collaboration and option agreement with Duke University to further develop and validate MBI's genetic biomarkers for lymphoma and leukemia using its Profiling System(TM).

The collaboration between MBI and Duke includes, among other things, the following terms: Duke will provide to MBI a certain number of samples from patients with clinically confirmed lymphoma and leukemia for genetic analysis by MBI; MBI and Duke will collaborate on the further analysis of those results; Duke grants to MBI an option to acquire exclusive world-wide licensing rights to the intellectual property developed by Duke under the collaboration; MBI will pay to Duke certain royalties on revenue received from the commercialization of the intellectual property developed under the collaboration; Duke will be entitled to publish the results of the collaboration, subject to review and comment by MBI; and MBI will reimburse Duke for certain expenditures incurred under the collaboration. Initiation of the research to be conducted under the collaboration is subject to receipt by the parties of all relevant institutional review board approvals.

- February 27, 2007: MBI appointed Dr. Richard C. Cook, Clinical Associate Professor of Cardiovascular Surgery at the University of British Columbia, to its Scientific Advisory Board.
- February 15, 2007: MBI entered the development phase for its genetic screening test for colorectal cancer. There are currently no screening tests for colorectal cancer that are both non-invasive and of high predictive value, and MBI is developing a gene expression screening tool to fill that void.

- February 1, 2007: MBI's Gene Expression Profiling System(TM) achieved an average accurate prediction rate of 88% in diagnosing the seven most prevalent lymphoma subtypes comprising approximately 83% of all lymphomas. The median specificities for diagnosing these subtypes averaged 97%, whereas the median sensitivities averaged 86%. The current accuracy rate in diagnosing lymphoma ranges between 56% and 90%.

Erinn B. Broshko, Chief Executive Officer of MBI, stated, "Med BioGene has made tremendous progress since our public listing a year ago. We successfully completed the initial validation of our lymphoma genetic biomarkers for use as an effective tool for accurate and rapid disease diagnosis, began research collaborations with Duke University for lymphoma and leukemia and the University of Ottawa Heart Institute for cardiovascular disease, and are in the final stages of raising further equity to continue to aggressively develop our product pipeline. I am extremely pleased with the work of our scientific and business team."

2006 Financial Results
MBI reported a net loss of $3,517,793 ($0.20 per share) in 2006 compared to a net loss of $893,416 ($0.10per share) in 2005. The increase was primarily due to $2,293,696 of transaction costs associated with the acquisition of Dragon-Tex (Group) Limited and the listing of MBI's common shares on the TSX Venture Exchange on April 28, 2006. These transaction costs consisted of: (a) a non-cash charge of $2,000,000 representing the fair value of the common shares issued; (b) $93,288 of assumed liabilities of Dragon-Tex; and (c) $150,408 of professional fees incurred in 2006 associated with closing the transaction.

Operating expenses increased from $597,872 in 2005 to $1,323,386 in 2006 as a result of increased costs associated with the expansion of the Company's research activities and increased general and administrative costs associated with added administrative personnel and public company operating costs.

Research and Development
Research and development expenses were $565,168 in 2006 compared to $401,176 in 2005. The increase was due primarily to stock-based compensation costs of $152,179, an increase in personnel costs and laboratory supplies partially offset by a decrease in consulting fees, intellectual property and legal filing fees. Government grants received and investment tax credits recorded were $149,630 in 2006, compared to $218,762 in 2005.

General and Administrative
General and administrative expenses were $647,084 in 2006 compared to $182,288 in 2005. The increase was due primarily to stock-based compensation costs of $257,678 and higher personnel costs, consulting and public company costs.

Liquidity and Capital Resources
At December 31, 2006, the Company had $613,016 of cash and cash equivalents as compared to $25,945 at December 31, 2005. The increase relates to the net proceeds from the brokered private placement which closed in conjunction with MBI's public listing of $1,682,208 offset by $915,980 of net operating cash outflows, $72,756 of property and equipment purchases and repayment of $38,532 of shareholder loans.
On March 27, 2007, MBI announced that it entered into an agreement with Fraser Mackenzie Limited to act as exclusive lead agent in connection with a private placement of $4 million of units. See above for the details of the proposed private placement.

About Med BioGene

MBI is a biotechnology company with advanced research and development in gene expression technology. MBI intends to utilize its expertise in gene expression to identifying those genes, known as "biomarkers," which mark the presence of various diseases. These biomarkers will be used as an effective tool for accurate and rapid screening and diagnosis and to unlock innovation in therapeutic development and treatment. With a robust set of qualified biomarkers, disease screening and diagnosis will be quicker, less invasive and more accurate and the safety of new therapeutics will be increased, drug products will get to patients in less time and treatment decisions will be more informed.

MBI is currently focused on developing and validating biomarkers in respect of lymphoma, leukemia, colorectal cancer and cardiovascular disease through its Gene Expression Profiling System™.

Certain statements in this press 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 are not limited to, those with respect to future profits, future product revenues, future operations and plans, the use of proceeds from financings, the timing of clinical trials and the completion date for clinical trials and the prospects for negotiating partnerships or collaborations and their timing. These forward-looking statements or information are only predictions 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 are based on 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 press release. Our forward-looking information does not reflect the potential impact of any future partnerships, collaborations, acquisitions, mergers, dispositions, joint ventures or investments 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 press release, other than as required by applicable law.

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