GeneNews Announces 2008 Year End Results

GeneNews Limited (TSX: GEN), a company focused on developing blood-based biomarker tests for the early detection of diseases and personalized health management, today reported operational and financial results for the year ended December 31, 2008.

"In 2008, we delivered the world's first blood test for colorectal cancer to market, ColonSentry™. This was not only an important event for everyone in the medical community focused on reducing the deadly impact of this disease, it was also the most significant milestone our Company has achieved so far, as we transformed into a commercial company with the launch of our first product," said Dr. Heiner Dreismann, Lead Director and Interim CEO of GeneNews. "Launching ColonSentry™ is a key validation of our proprietary platform, the Sentinel Principle™, and marks the beginning of a series of groundbreaking tests like this that we intend to develop across a wide range of medical indications. In the coming quarters, we are focused on expanding access to ColonSentry™ in additional regions across Canada and will also continue to prepare for its commercial launch in other global regions including the United States, Europe and Asia."

While GeneNews has sufficient funds to continue its operations into the second half of 2009, discussions with potential strategic partners and other entities are underway to secure access to additional capital resources and to expand its commercial capabilities.

ColonSentry™ Highlights for 2008:

• Launched ColonSentry™, the world's first blood test for colorectal cancer, in Canada.
• Partnered with Scienta Health, a Toronto-based executive health clinic, to offer the ColonSentry™ test to its patients.
• Partnered with Gamma-Dynacare Medical Laboratories, leading providers of laboratory services, information and products in Canada. Gamma-Dynacare is currently providing blood specimen collection services for ColonSentry™ at a number of laboratory patient service centres in the Toronto and in Southwestern Ontario.
• Formed a Canadian Colorectal Cancer Advisory Board: Drs. Lawrence Cohen, Jeffrey Baker, Khursheed JeeJeebhoy, Andy Smith and Mr. Barry Stein to advise GeneNews on clinical and patient adoption strategies for the Canadian commercialization of ColonSentry™.
• Appointed Patrick Terry, co-founder of Genomic Health, as lead strategic advisor for the U.S. commercial launch of ColonSentry™.
• Appointed three additional members to its US Colorectal Cancer Clinical Advisory Board: Dr. David A. Lieberman, Dr. David Sidransky, Dr. Richard Wender.

Corporate Highlights for 2008:

• Appointed Dr. Heiner Dreismann, former President & CEO of Roche Molecular Systems, as Lead Director and Interim CEO.
• Elected two additional independent directors to its Board of Directors, Mr. Harry A. Glorikian and Ms. Fran Tuttle.
• Entered into an agreement allowing Centocor Research & Development, Inc. selected access to research from its osteoarthritis genomic biomarker program.

Financial results (CDN dollars) for the fourth quarter and year-ended December 31, 2008:

For the year-ended December 31 2008, the Company recorded revenue of $1.4 million compared to $2.2 million for the year-end December 31, 2007. For the three-month period ended December 31, 2008, the Company recorded revenue of $536,626 compared to $312,314 for the three month period ended December 31, 2007. Revenue in 2008 was predominantly attributable to a collaboration agreement entered into with an Asian biomedical consortium to identify and validate a set of biomarkers in the field of prostate diseases. The milestone revenue from the Asian biomedical consortium amounted to $1,041,102. License revenue from the access provided to Centocor amounted to $371,160. ColonSentry™ sales revenue in the year amounted to $9,628. The Company has not offered formal guidance on future revenue projections from sales of the ColonSentry™ test, however, the number of tests performed rose significantly in the fourth quarter of the year when compared to the third quarter. The Company is focussed on building its commercial infrastructure and penetrating the key market segments it has identified in the Greater Toronto Area including executive health clinics, private insurers and patients through their primary-care physicians.

For the year-ended December 31, 2008, total operating expenditures were $14.6 million compared to $11.8 million for the year-ended December 31, 2007. For the three-month period ended December 31, 2008, operating expenditures were $3.2 million compared to $3.0 million for the three month period ended December 31, 2007. Research and development expenses were $10.2 million for the year-ended December 31, 2008 compared to $8.9 million for the year-ended

December 31, 2007. For the fourth quarter, research and development expenses were $2.3 million compared to $2.1 million for the corresponding quarter in 2007. General and administrative expenses were $0.8 million compared to $0.7 million for the corresponding quarter in 2007.

Net loss for the year-ended December 31, 2008 totalled $13.2 million or ($0.24) per common share compared to a net loss of $9.6 million or ($0.17) per common share for the year-ended December 31, 2007. For the three-month period ended December 31, 2008, net loss was $2.7 million or ($0.05) per common share compared to a net loss of $2.6 million or ($0.05) per common share for the three month period ended December 31, 2007. The net loss is reflective of the Company's continuing focus on research and development and product development which led, on July 21, 2008, to the launch of its first product, ColonSentry™, and the advancement of related products in the Company's pipeline.

As at December 31, 2008, the Company's cash and cash equivalents amounted to $1.4 million compared to $11.3 million as at December 31, 2007. In December 2008, the Company gained approval from the Toronto Stock Exchange to offer up to $3.45 million of five-year convertible secured debentures bearing simple interest at 15% per annum with warrants exercisable for 4 common shares of the Company for every $1 of debentures acquired. The first of three closings under this offering occurred on December 31, 2008 whereby $1,058,350 of debentures were sold. On January 16, 2009 a further $718,782 of debentures were sold. On February 11, 2009, $1,475,210 of debentures were sold for total gross proceeds raised under the offering of $3,252,342. The Company believes it has adequate resources to continue into the second half of 2009 based on its current cash and cash equivalent position.

As at December 31, 2008 the Company had 55,883,437 common shares and 6,637,275 stock options outstanding.

The Company's annual financial statements and management's discussion and analysis will be available on www.sedar.com.

Notice of Annual General Meeting:

GeneNews will hold its Annual General Meeting of Shareholders at 4:00PM on May 11th 2009 at their corporate headquarters, 2 East Beaver Creek Road, Building 2, in Richmond Hill, Ontario.

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.