GeneNews Announces Second Tranche of Debenture Offering

GeneNews Limited (TSX: GEN), a company focused on developing blood-based biomarker tests for the early detection of diseases and personalized health management, today announced that it has accepted subscriptions for five-year 15% redeemable convertible secured debentures (each, a "Debenture") in the aggregate principal amount of $718,782.85. The issuance of these Debentures represents the second tranche of a private placement offering of the Debentures that was announced on December 31, 2008 whereby the Company's Board of Directors authorized the sale of up to an aggregate principal amount of $3,450,000 of Debentures.

Each Debenture will be issued at par with no discount or premium to the principal amount of the Debenture. The 15% per annum simple interest that is payable on the Debentures is to be accrued and paid only upon the earlier of maturity, conversion or redemption of the Debentures. No commission or finder's fee is payable in regard to the issuance of the Debentures.

In consideration for purchasing a Debenture, each initial purchaser of a Debenture shall also receive one warrant ("Warrant") for every $0.25 of principal amount of their Debenture. Each Warrant is exercisable into common shares of the Company ("Common Shares") for a period of 36 months following the date of issuance at a price of $0.25 per Common Share.

The net proceeds from the sale of the Debentures will be used for general working capital purposes, the continued marketing of the ColonSentry™ test in Canada and pre-launch preparation for the commercial launch of the ColonSentry™ test into the United States and Asia.

As at January 16, 2009, the number of Common Shares outstanding was 55,883,437.

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.