REPORT FOR THIRD QUARTER 2008

The third quarter report for 2008 was approved by the Board of Directors on October 30th. Please find the report and an investor presentation enclosed.

Highlights from the report:
- Breast cancer test BCtect™ approved by Super Religare Laboratories Ltd (SRL)
- Commercial launch of BCtect™ in India scheduled for 8 November 2008
- Research grant awarded by the EU Commission
- New patents for Japan, New Zealand and Hong Kong will be approved

DiaGenic’s first commercial test will be launched in India on 8 November 2008. BCtect™ has been chosen as the product name for the breast cancer test and the launch of BCtect™ will take place in New Delhi. The initial launch will be followed by a subsequent roll-out to the 10 largest cities in India. By early 2009 it is expected that the test will be available across India.

The positive results from the comprehensive clinical multi-centre study to document the diagnostic value of BCtect™ in India have formed the basis for the commercial launch by Super Religare Laboratories Ltd (formerly SRL Ranbaxy Ltd. SRL has completed the quality audit of the reference laboratory Labindia, received feedback from doctors in the target group and tested its own logistical processes. BCtect™ gave correct predictions in this important study by SRL with blinded samples that documented the entire process from taking blood samples and transportation of samples through to processing at Labindia.

The research programme “Standardisation and improvement of generic pre-analytical tools and procedures for in vitro diagnostics” (SPIDIA) has officially begun. As a participant in the programme DiaGenic will receive a grant on approximately EUR 580,000 distributed over 4 years. The grant from the EU will be used to develop further the pre-analytical process for the analysis of blood based gene expression.

DiaGenic has been informed that patent applications for Japan, New Zealand and Hong Kong will be approved. The patent in Japan and New Zealand covers both Alzheimer’s disease and breast cancer, while the patent in Hong Kong is an extension of the European Alzheimer’s patent.

Net Income totaled NOK -8.2 million for the third quarter in 2008 compared with NOK -6.7 million in the corresponding period in 2007. Total operating costs for the third quarter 2008 amounted to NOK 8.9 million compared with NOK 6.9 million in the third quarter in 2007. The company’s liquid assets totaled NOK 39.8 million at 30 September 2008.

Highlights post quarter end:
- After the end of the quarter DiaGenic has designated DNAVision as the European clinical reference laboratory. This in order to ensure quality and easy access to the test on launch. The blood samples will be taken at sample collection centers and sent to the central reference laboratory for analysis. DiaGenic’s objective is to have a network of distributors for important markets in Europe in place once the tests are CE marked.

Attachments: The Q3 report and presentation

Contact:
MD PhD Erik Christensen, Managing Director
Telephone: +47 95939918
e-mail: erik.christensen@diagenic.com

About Us

NEL ASA is a leading global supplier of hydrogen technology for industrial / energy purposes, and has made over 500 deliveries in more than 50 countries. The company's main products are hydrogen production plants based on water electrolysis, complete hydrogen stations for transport and renewable energy storage solutions. The company has its roots from the hydrogen activities of Norsk Hydro, which dates back to 1927. The company also has a number of patents related to tests for early detection and diagnosis of diseases.

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