Med BioGene Closes Second And Final Tranche Of Private Placement

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For Immediate Release June 29, 2007

VANCOUVER, BRITISH COLUMBIA – Med BioGene Inc. (TSX Venture: MBI), a biotechnology company developing genetic biomarkers to improve screening, diagnosis, prognosis and treatment decisions for patients suffering from certain cancers and cardiovascular disease, is pleased to announce that it closed the second and final tranche of its previously announced private placement. MBI issued an aggregate of 677,500 units at a price of $0.45 per unit for aggregate gross proceeds of approximately $305,000. The first tranche of the private placement closed on June 1, 2007 and resulted in gross proceeds of approximately $3.07 million.

Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at a price of $0.65 for a period of 36 months following the closing date of the relevant tranche; provided that, MBI may accelerate the expiry date for such warrants if, at any time following the expiry of the four-month hold period, the closing price of MBI’s common shares on the TSX Venture Exchange is greater than $0.85 for 20 or more consecutive trading days.

The private placement is subject to customary conditions, including final acceptance by the TSX Venture Exchange. MBI plans to use the net proceeds to advance the development of its Gene Expression Profiling SystemTM for lymphoma, leukemia, colorectal cancer and cardiovascular disease and for general corporate purposes.

Fraser Mackenzie Limited was the agent for the private placement and received a 7.5% selling
commission and compensation options to acquire that number of units equal to 7.5% of the number of units sold pursuant to the Private Placement (excluding sales made to purchasers designated by the Chief Executive Officer of MBI, in which case Fraser Mackenzie received a 1%   selling commission and compensation options to acquire that number of units equal to 1% of the number of units sold to such purchasers).

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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