Genovis 3Q 2007 interim report 1 January – 30 September 2007

• 3Q 2007 loss after tax stood at SEK 2,752,000 (SEK -1,321,000) and for the 1 Jan. – 30 Sept. period, at SEK 6,090,000 (SEK -3,401,000).
• The company launched a new web site for online sales.
• Genovis opened a sales office in Hong Kong in September.
• Patents acquired during 2Q 2007 generated new products.

Key events after period's end
• Sales started, products delivered to customers.
• US subsidiary established, subsidiary manager recruited (also responsible for global marketing)

Genovis is a biotech company with cutting-edge expertise in nanotechnology and nanoparticles. Its patented nano-induced magnetic transfer (NIMT®) technology was developed to enable the life science industry to conduct efficient preclinical research. The Genovis stock is listed on the First North stock exchange (OMX). Mangold Fondkommission AB is a certified advisor and guarantor of liquidity for Genovis.

From the CEO
On September 27, 2007 Genovis began offering its products to various customers via online sales. Since we announced our decision to launch our own web store earlier this spring, we've worked intensively to enhance our customer proposition by developing several products and by investing in a web-based platform that now supports our entire value chain from production to customer. Fast-paced development during the period now bears fruit. Interest in our web store products is high, and we're delighted to report that the results are visible, i.e., sales of our first products.

We will continue with the fast development pace and will launch several new products within the next six months. We'll also build an efficient marketing and business development organization that will serve the largest international markets.

Sarah Fredriksson
CEO, Genovis AB

Operations
Genovis is a biotech company that develops and markets products within medical research. It delivers patented technology, products, and support that facilitate pharmaceutical development and preclinical research companies' operations. The Genovis technology, which is based on nano-induced magnetic transfer (NIMT® ) technology is a method and a technical tool that includes nanoparticles and laboratory instrument.

Genovis currently provides products within five different product groups: NIMT® FeOfection, NIMT® FeOsilence, NIMT® FeOdots, NIMT® FeOlabel, and NIMT® FabRICATOR. The company launched these products on September 27, 2007. All commercial products are intended for laboratory use and are marketed for two different applications:
• Biomolecule delivery: Gene transfer, RNA interference, magnetic marking, and cell sorting.
• Separation and Antibody Engineering: Magnetic separation of biomolecules and preparation and fragmentation of antibodies.

In May 2007, Genovis signed a contract with Hansa Medical AB regarding acquisition of patents and licenses for biotechnical industrial applications for a group of bacterial surface proteins. Genovis

Markets the rights along with its nanoparticles (i.e., NIMT® FeOdots) in totally new laboratory products intended for preclinical research. The proteins included in the contract will be primarily used as components in products intended for antibody-based research and production of antibody fragments. Genovis combined its technology platform with two of the bacterial surface proteins that it acquired from Hansa Medical AB and created a unique tool for fragmenting antibodies. The antibody fragmentation technology is increasingly in demand; it is used, e.g., for cell culture analyses, tissue sample dyeing, and for avoiding immune system activation during new antibody-based medicine development. At the end of September, the first product (NIMT® FabRICATOR) in this area was launched with the company's other products.

In September 2007, Genovis became established on the Asian market with a sales office in Hong Kong. Several Asian countries are investing heavily in the life science industry, primarily in stem cell research, vaccine development, and RNA interference. Björn Hammarberg heads the Asian initiative; he represents Genovis in the Asia-Pacific region and in the Middle East. He has extensive experience in molecular biology and has worked with business development and marketing of products and services for the biotech industry and research institutions worldwide. He has implemented projects for companies such as AstraZeneca and PALL Life Sciences.

On September 27, 2007 the company’s new web site was launched to enable online sales. Customers and potential customers in these and other regions demonstrated an interest: Australia, Brazil, Europe, India, Mexico, Singapore, South Korea, and the US. Genovis intends to be represented on several of these markets, and the new web site supports partners' and distributors' CRM efforts.

Personnel
In 3Q 2007, the number of employees remained constant. At the end of the period, Genovis had 10 employees (5).

Profit/loss
Revenue streams include instrument rentals and labor market contributions; total revenue for the period reached SEK 44,000 (SEK 108,000). Rentals brought in SEK 5,000 and contributions brought in SEK 39,000. Loss during the period stood at SEK 6,090,000 (SEK -3,401,000).

Investments
During the period, investments in intangible assets (continued patents and prototypes development plus intellectual property rights acquisition) totaled SEK 4,372,000 (SEK 2,476,000). Investments in property, plant, and equipment totaled SEK 651,000 (SEK 209,000).

Cash flow and financial position
Cash flow from on-going operations before changes in working capital was SEK –7,676. Cash flow from financial operations was SEK –1,352,000. On 30 September 2007, cash and cash equivalents stood at SEK 3,856,000 (SEK 2,696,000).

Genovis B shares
Genovis B shares are listed on First North, which is a part of the OMX Nordic Exchange.

Key events after period's end

Customers
Genovis received its first customers after its online sales were launched.

Subsidiary in the US
Genovis set up Genovis Inc., a subsidiary in Boston. Christopher Wilkins was hired as the CEO for Genovis Inc. He brings extensive biotech industry experience to the Genovis operation. Wilkins has held executive positions in sales, marketing, and business development at Cepheid, Inc. and MJ Research, Inc. (owned by Bio-Rad since 2004). He earned his Ph.D. in Genetics at Cornell University in Ithaca, New York.

Genovis Group marketing manager
Going forward, Wilkins will be responsible for global marketing. The US is the single largest market for Genovis products, which is why Wilkins will be responsible for all marketing efforts carried out by the Group.

Accounting principles
The interim report was prepared as per RR20. Accounting principles, estimates, and appraisals remain unchanged compared to 2006.