VANCOUVER, BRITISH COLUMBIA – Med BioGene Inc. (TSXV: MBI) today closed the second tranche of its previously announced non-brokered private placement through the issuance of 4,576,513 units for gross proceeds of $366,121.  MBI also issued 625,000 units in satisfaction of $50,000 of expenses related to the private placement.  MBI closed the first tranche of the private placement on June 5, 2009 through the issuance of 15,423,488 units for gross proceeds of $1,233,879.  The gross proceeds from both tranches total $1,600,000.

Each unit was issued at a price of $0.08 and consists of one common share and one-half of one common share purchase warrant.  Each whole common share purchase warrant entitles the holder to purchase one common share at a price of $0.10 for a period of 24 months, subject to the acceleration by MBI of the expiration of the warrants if the closing price of the common shares on the TSX Venture Exchange is greater than $0.30 for twenty or more consecutive trading days.

The private placement is subject to customary conditions, including final acceptance by the TSX Venture Exchange.  MBI will use the proceeds of the private placement for the development and commercialization of LungExpress Dx™ and for general corporate purposes.

Other than in respect of units issued to insiders of MBI and certain other investors, MBI paid a 7% selling commission and issued compensation options to acquire that number of MBI common shares equal to 7% of the units sold pursuant to the private placement.

About Med BioGene

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

MBI’s lead product, LungExpress Dx™, is expected to be the first commercially available gene expression-based test for early-stage non-small-cell lung cancer that analyzes the molecular profile of a patient’s tumour to provide information to assist in tailoring treatment for that specific patient.  LungExpress Dx™ is the first and only gene expression-based test for non-small-cell lung cancer shown to assist in determining a patient's benefit from chemotherapy and prognosis for survival.

MBI is committed to advancing personalized medicine by commercializing tests that provide clinically relevant information to both save lives and reduce health care costs.

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:

      

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 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.