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GeneNews Reports Third Quarter 2006 Financial Results

TORONTO, CANADA (November 8, 2006): GeneNews Limited (TSX: GEN), formerly ChondroGene Limited, today announced its financial results for the third quarter ended September 30, 2006. The Company reported revenues of $878,275 for the period, compared to $891,388 for the three months ended September 30, 2005. Revenues were attributable to fees for services and amortization of the one time payment under the research collaboration with Pfizer that was announced in December 2004. The net loss for the quarter was $2,113,018 or $0.04 per share, compared to a net loss of $1,463,051 or $0.04 per share for the three-month period ended September 30, 2005. Revenues for the first nine months of 2006 were $2,619,517 with a net loss of $6,219,308 or $0.13 per share, compared to revenues of $3,268,111 with a net loss of $3,321,191 or $0.08 per share, for the corresponding period in 2005. At the end of the quarter, the Company had $23,415,767 in cash and cash equivalents.

"In the quarter we welcomed Dr. Heiner Dreismann, former CEO of Roche Molecular Systems, to our board of directors. Dr. Dreismann’s broad experience and deep knowledge of the industry, especially as it relates to the introduction of new molecular diagnostic technologies is already proving invaluable as we commercialize our lead product, ColonSentry™," stated K. Wayne Marshall, President and CEO of GeneNews. "Also following our financing in May, we applied for and received conditional approval to list our shares on the TSX. Subsequent to the quarter end, we changed our name to GeneNews from ChondroGene and began trading on the TSX. This is another significant milestone in the evolution of our company."

Financial statements are available in the attached pdf document. [ Download PDF ]

Forward-Looking Statements

This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements.