Genenews Reports Second Quarter 2007 Results

TORONTO, CANADA (August 14, 2007):

GeneNews Limited (TSX: GEN), a company focused on developing simple blood-based biomarker tests for the early detection of diseases and personalized health management, today reported operational and financial results for the second quarter, ended June 30, 2007.

Financial results (CDN dollars) for the second quarter (Apr. 1, 2007 – June 30, 2007):

Total revenue for the quarter ended June 30, 2007 was $0.5 million compared to $0.9 million for the same period last fiscal year. Revenues in 2007 resulted from an agreement entered into by the Company with an Asian biomedical consortium to identify and validate a set of biomarkers in the field of prostate diseases, for a total fee of $2 million (USD), while revenues in 2006, resulted from a collaboration agreement with Pfizer completed in the first fiscal quarter of 2007.

Interest earned during the three months ended June 30, 2007 was $358,000, compared with $116,000 during the prior year. The increase was due to increased balances of cash and short-term investments.

Total operating expenditures for the quarter ended June 30, 2007 were $2.7 million compared with $2.9 million for the same period last year. Research and development expenses for the quarter were $1.8 million compared with $2.1 million for the same period last year. General and administrative expenses for the first quarter were $0.7 million compared with $0.5 million for the corresponding quarter in the previous year.

The net loss for the quarter ended June 30, 2007 was $1.8 million or ($0.03) per common share compared with a net loss of $1.9 million or ($0.04) 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 ColonSentry™, a convenient and patient-friendly blood-based test that can detect colon cancer, and the advancement of related products in the Company’s pipeline.

Financial results (CDN dollars) for the six month period ended June 30, 2007:

Total revenue for the six-month period ended June 30, 2007 was $2.2 million compared with $1.7 million for the same period last fiscal year. Revenues in 2007 resulted from the prostate disease biomarker development agreement and the final revenue from the Pfizer collaboration agreement, and in 2006, resulted entirely from the Pfizer agreement, which was completed in the first fiscal quarter of 2007.

Interest earned during the six-month period ended June 30, 2007 was $541,000, compared to $153,000 during the prior year, the result of increased balances of cash and short-term investments.

Total operating expenditures for the six-month period ended June 30, 2007 were $6.2 million compared with $6.0 million for the same period last year. Research and development expenses for the quarter were $4.4 million compared with $4.5 million for the same period last year. General and administrative expenses for the six-month period ended June 30, 2007 were $1.3 million compared with $1.0 million for the corresponding period in 2006.

The net loss for the six-month period ended June 30, 2007 was $3.4 million or ($0.06) per common share compared to a net loss of $4.1 million or ($0.10) per common share for the same period last year. The Company’s continuing focus is on research and development leading to commercialization of its first product and the development of related products in the Company’s pipeline.

As at June 30, 2007 the Company had cash and cash equivalents totalling $16.6 million compared to $20.6 million as at December 31, 2006. Accounts payable and accrued liabilities at June 30, 2007 were $1.9 million compared with $1.8 million at December 31, 2006.

As at June 30, 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.

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