Med BioGene on Track for First Strategic Partnership in 2008

Letter from CEO Erinn Broshko to shareholders

As you know, Med BioGene Inc. (MBI-TSX Venture Exchange www.medbiogene.com) is focused on the development and commercialization of genetic diagnostic tests for cancer and cardiovascular disease. MBIs lead product is LymphExpress Dx(TM), a test for the accurate and rapid diagnosis of lymphoma.
2007 was a successful year for MBI as we:

• announced positive scientific results for LymphExpress Dx(TM) (for the news release click here);

• signed a major collaboration with Duke University to further develop and validate LymphExpress Dx(TM) (for the news release click here);

• appointed Sandeep S. Dave*, M.D. of Duke University, a world renowned expert in the gene expression profiling of lymphoma, as Principal Investigator of the lymphoma collaboration (for the news release click here); and

• completed a $3.3 million financing, primarily through institutional investors (for the news release click here).

2008 will be even more successful as the company expects to sign by the end of the year its first strategic partnership with a global diagnostics company with significant up-front, milestone and royalty payments for the development and commercialization of LymphExpress Dx(TM).

To that end, MBI has established the following three key milestones that it expects to achieve leading up to that partnership. The first milestone has already been met through the appointment by MBI of Dr. Melanie M. Mahtani as Executive Advisor, Commercial Development (for the news release click here), and the engagement of JRG Ventures LLC, a leading U.S. consulting firm (for the news release click here), to drive the partnership efforts:

Establish experienced business development team to prepare for and negotiate MBIs first strategic partnership for LymphExpress Dx(TM).

Expand collaboration with Duke University to include other major universities and healthcare centres to further develop and validate LymphExpress Dx(TM).

Confirm high accuracy data for LymphExpress Dx(TM).

Sign strategic partnership by the end 2008 for LymphExpress Dx(TM).

As Chief Executive Officer of MBI, I am focused on achieving these milestones and, in turn, creating shareholder value.

Thanks for your interest and support. Please call me if you have any questions or wish to discuss.

About Med BioGene

MBI is a life science company focused on the development and commercialization of genomic-based clinical laboratory diagnostic and screening 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.

Expected benefits include:

- more accurate, quicker and less invasive diagnosis;

- tailoring of treatment decisions to the needs of each patient by outlining a patient's genetic profile, thus making treatment more effective and reducing healthcare costs by minimizing the treatment of non-responders; and

- prioritizing of genomic biomarkers for use as potential therapeutic targets and to validate the effectiveness of specific therapeutics.

MBI is currently developing tests for lymphoma, leukemia and cardiovascular disease through the following products: LymphExpress Dx(TM), LeukExpress Dx(TM) and CardioExpress Dx(TM).

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 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 clinical trials and the completion date for 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 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. 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 press release, other than as required by applicable law.

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