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Med BioGene Appoints John H. Rayson, M.D. as Chairman of the Board; Reports Financial Results for Third Quarter 2006
November 29, 2006

VANCOUVER, BRITISH COLUMBIA – Med BioGene Inc. (TSX Venture: MBI), an emerging biotechnology company developing genetic biomarkers for use in improving diagnosis, prognosis and treatment decisions for patients suffering from certain cancers and cardiovascular disease, today reported that it appointed John H. Rayson, M.D. as its new Chairman of the Board and further reported its financial results for the three months ending September 30, 2006.

APPOINTMENT OF JOHN H. RAYSON, M.D. AS CHAIRMAN OF THE BOARD

The Board of Directors of MBI on November 25, 2006 appointed John H. Rayson as its new Chairman of the Board, replacing the founder of MBI and its President and Chief Scientific Officer, Dr. T. Nathan Yoganathan.  Dr. Yoganathan stated “We are very pleased that Dr. Rayson has accepted the appointment of Chairman.  Dr. Rayson’s experience and accomplishments in the industry are invaluable in assisting Med BioGene’s efforts to develop its genetic biomarkers and his increased role with the company as Chairman is consistent with our commitment to the highest corporate governance standards.?

Dr. Rayson has been a director of MBI since 2004. Dr. Rayson practiced family medicine for 27 years before joining MDS Metro Laboratory Services in 1994 as President and Chief Executive Officer, a position he held until 2001 when he became Chief Executive Officer and Executive Vice Chairman.  Dr. Rayson retired as CEO in June 2006 but continues as Executive Vice Chairman.  MDS Metro Laboratory Services is part of the diagnostics division of MDS Inc. (TSX: MDS; NYSE: MDZ).

FINANCIAL RESULTS FOR THIRD QUARTER 2006

Recent Business and Scientific Highlights 

•  November 10, 2006, MBI was approved by the Cooperative Human Tissue Network (“CHTN?), an initiative of the National Cancer Institute in the United States, to receive diseased lymphoma and leukemia samples for use in the validation of its genetic biomarkers.  The CHTN specializes in the prospective procurement, preservation and distribution to approved researchers and organizations of human tissues for research. 

•  September 25, 2006, MBI entered the development and validation phase for its genetic biomarkers for cardiovascular disease.  Furthermore, MBI began a joint pilot project with the Ottawa Heart Institute Research Corporation, the clinical and contract research arm of the University of Ottawa Heart Institute, to develop and validate its genetic biomarkers for cardiovascular disease. 

•  August 3, 2006, MBI announced promising results of its pre-clinical studies involving its genetic biomarkers for lymphoma.  The studies of fifty RNA samples derived from human lymphoma tissues suggest that MBI’s biomarkers can be used as an effective tool for accurate and rapid disease diagnosis and to unlock innovation in therapeutic development and treatment.  Furthermore, MBI narrowed its lymphoma biomarkers to approximately 100 genes, thus increasing the effectiveness of the product as a manageable diagnostic tool.

Erinn B. Broshko, Chief Executive Officer of MBI, stated “Med BioGene has made impressive progress over the last quarter as we continued to develop our genetic biomarkers for lymphoma and expect to meet certain important scientific milestones in the second quarter of 2007 regarding the accuracy, sensitivity and specificity of the biomarkers.  Upon meeting such milestones, we will be in a position to initiate discussions with potential partners to license our lymphoma biomarkers for use as an effective tool for accurate and rapid disease diagnosis and prognosis.  We are also aggressively developing our genetic biomarkers for leukemia and, through our joint pilot project with the Ottawa Heart Institute Research Corporation, cardiovascular disease.?

Financial Results for Third Quarter 2006

For the three months ending September 30, 2006, MBI reported a net loss of $407,682 ($0.02 per share) compared to a net loss of $232,786 ($0.03 per share) for the three months ended September 30, 2005.  The increase was primarily due to increased research and development expenses of $45,909 and increased general and administrative expenses of $158,950.

Research and Development

Research and development expenditures were $165,025 for the three months ended September 30, 2006 compared to $119,116 for the three months ended September 30, 2005.  Included in research and development expenditures is the impact of government assistance received and investment tax credits.  The increase in spending was due primarily to stock-based compensation costs of $61,227 which were offset by decreases in personnel costs and laboratory supplies.  In addition, there were $105,237 of government grants and refundable tax credits recorded in the three months ended September 30, 2005, which offset the related research and development costs incurred in that quarter, compared to $10,126 for the three months ended September 30, 2006.

General and Administrative

General and administrative expenses were $253,445 for the three months ended September 30, 2006 compared to $94,495 for the three months ended September 30, 2005.  The increase was due primarily to stock-based compensation costs of $152,023 and public company costs, such as filing and printing fees, of $7,827.

Liquidity and Capital Resources

Effective April 28, 2006, in conjunction with the listing of MBI’s common shares on the TSX Venture Exchange, MBI completed a private placement financing for gross proceeds of $2 million.  MBI has sufficient capital to satisfy the operating expenses and capital requirements required to meet its business objectives as currently planned for at least eight months.  However, MBI will require additional capital to complete the development of its product candidates, begin development of additional products or undertake a strategic alliance.  In such cases, MBI would review the different alternatives for obtaining additional funding from one or several sources such as granting licenses or disposing of certain non-core assets, cooperative research and development agreements, government grants, tax credits, the issuance of treasury shares if markets are favourable and other financial arrangements.  MBI’s inability to obtain the necessary capital would adversely affect its ability to complete such projects or strategic alliances.

CORPORATE MATTERS

MBI has granted to certain of its employees five-year incentive stock options to purchase an aggregate of 50,000 common shares at an exercise price of $0.40 per share.  These option grants were made pursuant to the Med BioGene Inc. 2006 Incentive Stock Option Plan and in the normal course of business.

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 disease diagnosis and to unlock innovation in therapeutic development and treatment.  With a robust set of qualified biomarkers, disease 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 and cardiovascular disease through its Gene Expression Profiling System TM.

For further information, please contact:
Erinn B. Broshko
Chief Executive Officer
(604) 306-4969
ebroshko@medbiogene.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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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