Genovis Carries Out New Share Issue

Background
Genovis has now achieved the company's primary operational objectives for 2008, which are to initiate sales, launch four products, and establish sales channels in US, Europe and Asia. Customers have generated revenues on these markets and the goal for 2009 is to continue the business development of the product portfolio. Genovis is an R&D intense company and the research projects involving the use of nanoparticles for medical device purposes are successful. In order to accomplish the company's business development plan, as well as to further develop the intangible value of medical imaging and delivery, additional capital is necessary. The Board of Directors has therefore resolved to carry out a new share issue, subject to the approval of the extra annual general meeting on December 17, 2008. The company's operations will be financed until such time that the proceeds of the share issue become available by bridge financing through a bank loan.
The principal owners intend to subscribe for their portions of the issue.

Resolution on new share issue in January
The Board of Directors has, subject to the approval of the extra annual general meeting, resolved to carry out a new share issue with preferential rights for existing shareholders whereby three existing shares will entitle the holder to subscription of one new share at a subscription price of SEK 3/share. As a result, share capital will be able to increase by an aggregate maximum of SEK 1,451,497.6 through the issue of 3,628,744 shares. The company will receive about SEK 10.8 million before share issue expenses.

Authorization for the Board to resolve on new share issue
The Board of Directors proposes that the annual meeting of shareholders resolve to authorize the Board, until the next Annual General Meeting, to resolve to carry out a new share issue of shares on one or more occasions, with or without preferential rights for existing shareholders.
As a result, under the authorization share capital could increase by an aggregate maximum of SEK 2,177,246 through the issue of new shares on market-based terms, though an aggregate maximum of 5,443,116 shares upon full subscription.
The reason for the authorization for possible deviation from the preferential rights of shareholders is that to provide the company with the opportunity to expand its ownership with one or more owners of strategic significance for the company.

The complete proposals for the aforementioned resolutions will be available at the company's office (street address: Scheelevägen 22, postal address: Box 790, 220 07, Lund, Sweden) and at the company's website (www.genovis.com) commencing on December 3, 2008 and will be sent upon request to shareholders who provide their mailing address.