GeneNews Reports First Quarter 2007 Financial Results

TORONTO, CANADA (May 16, 2007):

GeneNews Limited (TSX: GEN) a company developing convenient, blood-based tests for accurate, early detection, diagnosis and monitoring of diseases, today reported its financial results for the first quarter, ended March 31, 2007.

Total revenue for the quarter ended March 31, 2007 was $1.7 million compared to $0.9 million for the same period last fiscal year. Revenues in each of 2007 and 2006 resulted from the Pfizer collaboration, which was completed in October 2006 except for an amendment agreed to in December 2006 that entitled the Company to a further milestone payment of US$1.43 million. In 2007, the revenue resulted from this final milestone payment, and as at March 31, 2007 all Pfizer-related revenue earned had been received.

Interest earned during the three months ended March 31, 2007 was $183,321 as compared to $36,997 during the prior year, due to increased balances of cash and short-term investments.

Total operating expenditures for the quarter ended March 31, 2007 were $3.5 million compared with $3.1 million for the same period last year. Research and development expenses for the quarter were $2.7 million compared with $2.4 million for the same period last year. The increase is primarily the result of increased research and development activity related to process of commercializing ColonSentry™ as the Company’s first product. General and administrative expenses for the first quarter were $0.6 million compared with $0.5 million for the corresponding quarter in the previous year.

The net loss for the quarter ended March 31, 2007 was $1.7 million or ($0.03) per common share compared to a net loss of $2.2 million or ($0.06) per common share for the same period last year. The net loss is reflective of the Company’s continuing focus on research and development and the process leading to commercialization of its first product.

As at March 31, 2007 the Company had cash and cash equivalents totalling $19.2 million compared to $20.6 million as at December 31, 2006. Accounts payable and accrued liabilities at March 31, 2007 were $2.0 million compared with $1.8 million at December 31, 2006.

As at March 31, 2007 the Company had 55,450,571 common shares, and 625,000 broker warrants were outstanding.

Financial statements are available in the attached pdf document.

About GeneNews

GeneNews is focused on the application of functional genomics to enable early diagnosis and personalized therapeutic intervention based on disease-specific biomarkers. The Company has developed a novel approach, the Sentinel Principle™, to detect and stage virtually any disease or medical condition from a simple blood sample. GeneNews is currently applying the Sentinel Principle™ in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. GeneNews' first product, ColonSentry™, is a convenient and patient-friendly blood-based test that can assess an individual's current risk for colorectal cancer. For more information on GeneNews, visit www.genenews.com.

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.