VANCOUVER, BRITISH COLUMBIA – Med BioGene Inc. (TSX Venture: MBI) today reported its financial results for the first quarter ended March 31, 2008.

Erinn Broshko, MBI’s Chief Executive Officer stated “Med BioGene has made tremendous progress in 2008.  On the leadership front, Dr. Heiner Dreismann, former CEO of Roche Molecular Diagnostics and one of the top industry experts in the field of molecular diagnostics, joined our Board of Directors.  On the business front, we entered into a strategic collaboration with the University Health Network (affiliates of the University of Toronto) to commercialize LungExpress Dx™, we announced positive results from a recent study that demonstrate the high accuracy rate of LymphExpress Dx™, and we continued to work with Duke University to finalize a world-class international consortium of universities to develop LymphExpress Dx™.  Furthermore, we have been collaborating extensively with the University of Ottawa Heart Institute and have achieved promising results in our cardiovascular disease program, of which we expect to publish in the second quarter of 2008.� 

Recent Business and Scientific Highlights

• May 29, 2008:  MBI announced that Heiner Dreismann, Ph.D. joined the Board of Directors.  Dr. Dreismann is the former Chief Executive Officer of Roche Molecular Diagnostics (Roche), a division of F. Hoffmann-La Roche Ltd.  Under Dr. Dreismann’s leadership as Chief Executive Officer, Roche evolved into one of the world’s leading molecular diagnostics companies with annual sales to over US $1 billion and the significant expansion of their portfolio of diagnostic tests and hardware.  Dr. Dreismann is one of the top industry experts in the field of molecular diagnostics.  He has a proven track-record of leadership in the development, commercialization and adoption of molecular diagnostics and brings to Med BioGene valuable experience and industry contacts.

• April 23, 2008:  MBI and the University Health Network (UHN) announced that they have entered into license and collaboration agreements providing MBI with exclusive, world-wide rights to develop and commercialize a critical prognostic test for early stage non-small-cell lung cancer developed by UHN.  The test will be marketed under MBI’s trade name LungExpress Dxâ„¢.
  LungExpress Dx™ is a gene expression-based assay that provides valuable information regarding each patient’s prognosis for survival to more effectively guide treatment and improve the selection of patients for chemotherapy following surgical removal of their cancerous tumour. 

• April 3, 2008: MBI announced results from a recent study that confirm the previously demonstrated high accuracy rate of LymphExpress Dxâ„¢ v.1.  LymphExpress Dxâ„¢ v.1 is a gene expression-based array being developed to diagnose the most common subtypes of lymphoma, together representing approximately 90% of all Non-Hodgkin B-cell and Hodgkin lymphomas.  In the study, LymphExpress Dxâ„¢ v.1 achieved an overall accuracy rate of over 90%.

First Quarter 2008 Financial Results

MBI reported a net loss of $492,947 ($0.02 per share) in the first quarter of 2008 compared to a net loss of $623,680 ($0.03 per share) in the first quarter of 2007.  The decrease was a result of reduced stock-based compensation expenses and reduced laboratory supply purchasing partially offset by increased research and development personnel costs and business development costs as the Company continues to expand it’s partnering and commercialization efforts.

Research and Development

Research and development expenses were $158,725 in the first quarter 2008 compared to $344,194 in the first quarter 2007.   The decreased expenses are related to reduced stock-based compensation of $43,498 and reduced laboratory supply purchases of $151,128 compared to the quarter ended March 31, 2007.  In contrast to the comparative quarter the Company was focused more on commercialization and partnering matters then extensive laboratory work during the quarter ended March 31, 2008.  The Company had a further $34,465 of government contributions to support its cardiovascular disease program during the quarter. 

General and Administrative

General and administrative expenses were $311,733 in the first quarter 2008 compared to $275,794 in the first quarter 2007.  The increase was due primarily to increased business development activities in the quarter resulting from expanded partnering and commercialization efforts offset by decreased stock-based compensation expenses.

Liquidity and Capital Resources

At March 31, 2008, MBI had $1,109,735 of cash and cash equivalents and government receivables as compared to $1,580,672 at December 31, 2007. The decrease relates primarily to operational cash outflows during the quarter with no offsetting financing activities.  The Company is reviewing options relating to future financings with estimated working capital sufficient until November 2008.

About Med BioGene

MBI is a life science company focused on the development and commercialization of genomic-based clinical laboratory diagnostic and prognostic 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 assist in replacing the conventional “one drug fits all� approach to disease management.

MBI’s lead products are LungExpress Dx™, a gene expression-based prognostic test for lung cancer, and LymphExpress Dx™, a gene expression-based diagnostic and prognostic test for lymphoma. 

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:

      

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 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.