Blood-based Biomarkers Used to Detect Bladder Cancer

TORONTO, CANADA (May 17, 2005): ChondroGene™ Limited (TSX Venture: CDG) announced today that the results from a bladder cancer clinical study were presented in a poster entitled "Gene Expression Profiling in Blood Cells Reveals Novel Biomarkers of Human Urinary Bladder Cancer" at the American Society of Clinical Oncology (ASCO) meeting on May 16th. The study was conducted with researchers from the New York University School of Medicine and Memorial Sloan-Kettering Cancer Center in collaboration with ChondroGene scientists. As part of the study, differentially expressed genes in blood were also used to detect and discriminate amongst patients with testicular, renal, superficial bladder and metastatic bladder cancers and controls.

First Published Application of the Sentinel Principle in Cancer

ChondroGene's Sentinel Principle™ was used to identify two blood-based molecular biomarkers that are able to detect bladder cancer. In the study, 20 patients with bladder cancer and 15 controls were used. The test was able to discriminate control from bladder cancer with an overall sensitivity and specificity of 90.5% and 93.3% respectively.

Hierarchical analysis of differentially expressed genes in blood was also used to discriminate between groups with different genitourinary cancers and between late and early stage bladder cancer. In one analysis, 10 patients with testicular cancer, 9 with renal cancer and 16 with bladder cancer were compared and successfully distinguished. In the other analysis, 10 patients with superficial (early stage) bladder cancer, 6 patients with metastatic (late stage) bladder cancer and 10 controls were discriminated.

"We have identified cancer as one of our main disease areas of focus, with colon, bladder and prostate as our initial targets. We are very encouraged by the results of this bladder cancer study. We will continue to work with Memorial Sloan-Kettering, NYU School of Medicine and other institutions to increase the size of the clinical studies and to refine the biomarkers to be used in a diagnostic test. Eventually, a blood-based test could be used in place of cystoscopy as an initial screen to detect bladder cancer or for regularly monitoring bladder cancer patients for recurrence of disease," stated K. Wayne Marshall, President and CEO of ChondroGene. "We have applied the Sentinel Principle to generate similar results in colon cancer and prostate cancer. Preliminary clinical data for these cancers has also been very encouraging. These three cancers have tremendous unmet needs for diagnostic biomarkers and represent compelling commercial targets. We plan to develop and pursue commercialization of blood-based biomarker tests for one or more of these conditions this year."

About Memorial Sloan-Kettering

Memorial Sloan-Kettering Cancer Center, composed of Memorial Hospital for Cancer and Allied Diseases and the Sloan-Kettering Institute, is dedicated to excellence in the prevention, treatment, and cure of cancer through patient care, research, and education. Memorial Hospital for Cancer and Allied Diseases provides patient care. Early detection, precise diagnosis, individually tailored treatment, and concern for a patient's needs are the hallmarks of the care provided. For more information go to www.mskcc.org.

About NYU Medical Center

NYU Medical Center, one of the premier centers of excellence in health care, scientific research, and medical education in the US, is located on 30th Street and First Avenue in mid-town Manhattan. The Medical Center consists of two hospitals, Tisch Hospital and Rusk Institute of Rehabilitation Medicine, and New York University School of Medicine. For more information go to http://www.med.nyu.edu.

About ASCO

The American Society of Clinical Oncology (ASCO) is the world's leading professional organization representing physicians who treat people with cancer. ASCO's members set the standard for patient care worldwide, and lead the fight for more effective cancer treatments, increased funding for clinical and translational research, and cures for the many different cancers that strike millions of people around the world every year. For more information go to http://www.asco.org.

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.