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Med BioGene Inc. Reports Financial Results for the First Quarter 2007

May 28, 2007

VANCOUVER, BRITISH COLUMBIA – Med BioGene Inc. (TSX Venture: MBI) today reported its financial results for the first quarter ending March 31, 2007.

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 proposed private placement (the "Private Placement"). 

The terms of the Private Placement as disclosed earlier were amended by MBI’s board of directors on May 28, 2007 and the amount being raised is expected to be between $3 million and $4 million. Each unit will be issued at a price of $0.45 and will consist of one common share and one common share purchase warrant.  Each warrant will entitle 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 Private Placement; 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 scheduled to close on or about May 31, 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.

•   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 �ll that void.

•   February 1, 2007:  MBI's Gene Expression Pro�ling 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 speci�cities for diagnosing these subtypes averaged 97%, whereas the median sensitivities averaged 86%.  The current accuracy rate for pathologists in correctly classifying a particular subtype of lymphoma is estimated to range between 56% and 90% and depends upon numerous factors, including the skill and experience of the pathologist and the specific subtype of lymphoma afflicting the patient.

First Quarter 2007 Financial Results

MBI reported a net loss of $623,680 ($0.03 per share) in the quarter ended March 31, 2007 compared to a net loss of $238,737 ($0.02 per share) in the quarter ended March 31, 2006.  The increase was primarily due to increased general and administrative expenses of $250,158 and increased research and development expenses of $297,126 offset partially by an elimination of the transaction costs associated with MBI's 2006 going public transaction.

Research and Development

Research and development expenditures, which are net of government contributions were $344,194 for the three months ended March 31, 2007 compared to $47,068 for the three months ended March 31, 2006.  The increase was due primarily to stock-based compensation costs of $63,119, increased personnel costs of $25,540, increased laboratory expenses of $183,264 and increased legal expenses of $21,275 during the quarter ended March 31, 2007 compared to the quarter ended March 31, 2006.  These increases relate to the 2006 stock option grants and an increase in our research and development team headcount from four scientists in the three months ended March 31, 2006 to seven scientists in the three months ended March 31, 2007.  In addition, we had a significant increase in our laboratory activities with the receipt and processing of an increased volume of samples in the three months ended March 31, 2007 compared to the three months ended March 31, 2006.  Our increase in intellectual property expenses is associated with our ongoing patent protection activities for our Hematological Cancer Profiling System.

General and Administrative

General and administrative expenses were $275,794 for the three months ended March 31, 2007 compared to $25,052 for the three months ended March 31, 2006.  The increase was primarily due to stock-based compensation costs of $132,565, the addition of a full time Chief Executive Officer and Office Manager and an expansion of the MBI's office space in May 2006.

Liquidity and Capital Resources

At March 31, 2007, MBI had $276,523 of cash and cash equivalents as compared to $613,016 at December 31, 2006.  The decrease relates primarily to $316,834 of net operating cash outflows.

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 between $3 and $4 million of units. 

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^TM.

For corporate information, please contact:

Erinn B. Broshko
Chief Executive Officer
(604) 306-4969
ebroshko@medbiogene.com
www.medbiogene.com

For investor relations information, please contact:

David Gordon
The Howard Group Inc.
(888) 221-0915
info@howardgroupinc.com
www.howardgroupinc.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.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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