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Med BioGene Inc. Reports Financial Results for First Quarter 2006
May 30, 2006

VANCOUVER, BRITISH COLUMBIA - Med BioGene Inc. (TSX-V – MBI) today reported its financial results for the quarter ending March 31, 2006.

First Quarter 2006 Financial Results

For the quarter ending March 31, 2006 MBI reported a net loss of $238,737 ($0.02 per share) compared to a net loss of $101,122 ($0.01 per share) for the quarter ended March 31, 2005. The increase in net loss is primarily a result of an increase in costs related to the acquisition of Dragon-Tex (Group) Limited (“Dragon-Tex?) and concurrent listing of shares on the TSX Venture Exchange, which was completed on April 28, 2006.

Research and Development

Research and development expenditures, which are net of government assistance received and investment tax credits, were $47,068 for the quarter ended March 31, 2006 compared to $67,225 for the quarter ended March 31, 2005. The decrease was due primarily to a decrease in laboratory supplies expenses of $30,416 and a decrease in consulting fees of $14,189. We anticipate these expenses to increase as the company continues to expand its research and development activities related to the development of MBI’s Hematological Cancer Profiling System.

General and Administrative

General and administrative expenses were $25,052 for the quarter ended March 31, 2006 compared to $18,944 for the quarter ended March 31, 2005. The increase was primarily due to increased professional fees and sales and marketing related expenses for printing and website design.

Transaction Costs

Transaction costs consist of professional and filing fees incurred to complete the acquisition of Dragon-Tex and were $150,408 for the quarter ended March 31, 2006. There were no such costs in 2004.

Liquidity and Capital Resources

Effective April 28, 2006, MBI completed a Private Placement which yielded sufficient capital for MBI to satisfy the operating expenses and capital requirements required to meet MBI’s business objectives for at least twelve months. However, additional capital will be required to complete the development of MBI’s product candidates or to undertake a strategic acquisition. 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 acquisitions.

About Med BioGene

MBI is a biotechnology company with advanced research expertise in gene expression technology. MBI’s mission is to become a market leader in the supply of content for molecular-based diagnostic micro arrays. MBI intends to fulfill this mission by developing and marketing genetic content for molecular-based human diagnostic tests. Molecular diagnostics, based on genetic expression, is a developing technology field that has the potential to replace certain of today’s standard diagnostic tests. MBI intends to utilize its expertise in gene expression, bioinformatics and micro arrays to develop the diagnostic tests’ genetic content. From the tens of thousands of genes in the human genome, MBI is attempting to identify those genes, known as “bio markers,? which mark the presence of various disease conditions.

MBI’s initial focus will be developing diagnostic tests for certain types of cancer, specifically, lymphoma and leukemia. In the future, MBI intends to develop diagnostic tests to identify the earliest stages of heart disease or the presence of an infectious disease. These diagnostic test kits will be designed to provide additional information to physicians to allow them to create more suitable and more effective treatments for an improved patient prognosis.

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 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, collaborations, 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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