Half-Yearly Report January-June 2011

Financial information

• Net sales climbed to SEK 1,030k (558k)
• Loss after financial items was SEK 6,784k (loss: 5,148k)
• Loss after tax was SEK 6,763k (loss: 5,127k)
• Earnings per share totaled SEK -0.10 (-0.12)
• Cash and cash equivalents at the end of the period amounted to SEK 14,161k (11,863k)

Other events during the quarter

• Genovis conducted a rights issue during the period that was subscribed to more than 90% and provided the company with about SEK 18 million.
• Genovis launched the FragIT™ Kit, a scalable and efficient technology for producing antibody fragments with extremely high yield and short process time. The product is a further development of Genovis’ unique technology and targets customers in pharmaceutical, biotech and diagnostics companies that develop antibody-based drugs and analyses.
• Hans-Göran Arlock left the Board of Directors at the annual meeting of shareholders and was replaced by Jacob Engellau, associate professor at Lund University stationed at both Skåne Oncology Department, Lund University, and the Oncology Department at Finsencentret, Copenhagen University Hospital.
• During the period Genovis customers published numerous scientific publications demonstrating the benefits of Genovis products from the protein portfolio.

Other events after the end of the period

Fredrik Lindgren declined election at the Extraordinary General Meeting in July, and Kenth Petersson was elected to serve as a new Board member. Mr. Petersson is chairman of the board at AlphaBeta AB, Biocrine AB, Spiber Technologies AB and Science Pacific AB. He is a board member of Alligator Bioscience AB and BioInvent AB.

ABOUT GENOVIS

Genovis develops and sells innovative technologies from two unique product portfolios. The first involves nanotechnology in new contrast agents and the second consists of unique enzymes that facilitate development and quality control of drugs. Research and development have largely dominated the company’s business activities, but over the past two years commercialization has begun. Today, sales and customer-based development projects account for an increasingly important part of business. The customers are mainly biotechnology and pharmaceutical companies and research groups associated with universities. By combining direct sales with marketing through a few distributors in the US and Europe, Genovis sells products to customers in the global Life Science industry. Research and development projects are mainly in-house in the company’s facilities in Lund and Malmö, as well as collaborations with research groups at Lund University.

COMMENTS FROM THE CEO

One year ago we launched products specifically designed for an application, a kit with products for analysis of antibodies using mass spectroscopy. We chose to do so to become more focused in our marketing strategy. We shifted from only offering our enzymes to offering customized products and protocols to biotechnology and pharmaceutical companies. Now a year later, we see the results of this strategy – not only in terms of sales, but also in terms of scientific publications from our customers. During the first half of the year, in just a short time period our customers published three scientific articles showing that Genovis products open opportunities for completely new technologies, which in turn increase the speed and quality of the customer’s analyses. In June we presented our products at the 59th ASMS Conference on Mass Spectrometry & Allied Topics, the biggest conference and meeting place for all mass spectroscopy users and developers. Our customers also presented papers at the conference showing the high performance of our products compared with competing technologies. Interest in and attention to our products has grown and naturally serves as an extremely welcome enhancement of our marketing.

I am pleased with the progress of our internal development projects and look forward to the commercialization of products from the nanotechnology portfolio and new applications from the protein portfolio this autumn. We have chosen to prioritize our resources by focusing on one defined application at a time when launching products from the nanotechnology portfolio. The first product group to be launched involves nanoparticles as contrast agents to track cells in preclinical stem cell research.

The collaboration within the LUPAS EU project submitted the first report to the EU. A summary of the results is available at the project website, www.amyloid-lupas.com. The project is inherently interdisciplinary and, although the research is at an early stage, the project has already provided Genovis with a unique opportunity to apply our technology and to learn about the use of nanostructures as contrast agents. We also gain insight into what tools are greatly needed in preclinical research.

During the second quarter Genovis raised funds in a rights issue. With this infusion of capital we can meet our customer obligations and continue to drive our development projects toward established goals during the coming year. We would like to thank all of our shareholders, existing and new, for their confidence. It means so much to our business.

Sarah Fredriksson, CEO

For more information, please contact: Sarah Fredriksson, CEO, Genovis AB Tel: 46 46 10 12 35 sarah.fredriksson@genovis.com

Genovis develops and designs smart nanoparticles for preclinical imaging and diagnostics and also develops and sells tools for modification of antibodies.Genovis shares are listed on Nasdaq OMX First North and Thenberg & Kinde Fondkommission ( 46 (0)31 745 50 00) is the Company’s certified adviser.