Interim Report January-March 2009

Financial information February-March • Consolidated net sales amounted to SEK thousand, 120 (SEK thousand, 106) • Consolidated operating profit/loss amounted to SEK thousands, – 3 373 (SEK thousand, -4 869). • Consolidated Net/profit loss amounted to SEK thousands, -3 466 (SEK thousand, - 3563). • Earnings per share for the period amounted to SEK –0,29 SEK (-0,41). • Comprehensive income for the period amounted to SEK thousand, -4 089 (SEK thousand, -3 563). • Cash and cash equivalents at the end of the period amounted to SEK thousand, 1 911 KSEK. First quarter highlights • Genovis enters into distribution agreement with Finnzymes Inc. in the US • Genovis enters into distribution agreement with Biozym Scientific GmbH for Germany and Austria • 87.6% of Genovis new share issue subscribed

Operations Genovis develops and markets nanostructures that can be divided into two groups: nanoparticles (NIMT®) for medical imaging (early trials) and transfection/delivery and proteins (Antibody Tools) for antibody fragmentation and -modification. In 2009 the Company will sell or license out the protein engineering portfolio in order to focus on nanoparticles (NIMT®), which are the Company's core business. Research and Development will focus on preclinical medical imaging. In 2008 Genovis began to introduce its first product in the area and expects to launch a group of products in 2009. Genovis has signed a distribution agreement with Biozym Scientific, which is well known in the Life Science market in Germany and Austria. Genovis has also expanded its US operations with a local distributor, Finnzymes Inc., and transferred all logistics and marketing activities in the US to Finnzymes. Finnzymes Inc. is a wholly owned subsidiary of Finnzymes Oy and distributor of Finnzymes products in North America. As a result the Genovis brand will achieve substantially broader distribution in the US. In January Genovis carried out a new issue with preferential rights for existing shareholders. A total of 87.6% of shares were subscribed, with about 82.2% subscribed by existing shareholders and with preferential rights. The rest of the shares were subscribed without preferential rights within the frame of the highest amount of the issuing. The issue provides Genovis with about SEK 8.7 million after issue expenses. The number of shares increased from 10,886,233 to 14,066,466. Product portfolio Imaging Imaging, a market segment undergoing strong growth, is used by researchers for in vivo and ex vivo studies. In order to see what happens in a cell and to be able to follow the cell inside an animal model, the cell must be marked in some way. One method is to introduce magnetic nanoparticles into the cell, NIMT® FeOlabel, and then follow the cell using magnetic resonance imaging (MRI). Today Genovis is working on two in vivo imaging projects in cooperation with Lund University. One project involves development of nanostructures for use in diagnostics (medical imaging) of extremely small tumors that can rapidly occur in lymph glands among patients with breast cancer. The project recently received funds from the Swedish Research Council to finance an industrial doctoral student for four years. The other project involves nanoparticles as carriers of small molecules to cells in the brain. Genovis also supports several customer projects in which the customer either uses Genovis' products for medical imaging or to track stem cells. Transfection/Delivery There is a large market for technologies that deliver molecules (e.g., DNA or genes) into cells. One such technology is NIMT®FeOfection, which offers high efficiency and low toxicity compared with rival products. RNAi is another field undergoing dramatic growth, where researchers are interested in technologies to silence gene activity in order to treat conditions such as viral infections, cardiovascular diseases, cancer, and metabolic diseases. With its high efficiency and low toxicity, Genovis' NIMT®FeOfection is also extremely suitable for these studies. Antibody Tools FabRICATOR® is a genetically modified enzyme that cleaves antibodies into two parts, a Fab fragment and an Fc fragment. Unlike other technologies on the market, FabRICATOR® cleaves all antibodies in a very short time in exactly the same place, and each antibody is only cleaved once. FabRICATOR is also sold as a kit that allows customers to cleave and isolate pure Fab fragments in less than one hour, unlike other methods which may take up to twenty-four hours to achieve the same results. IgGZERO™ is a unique protein that can specifically cleave sugar molecules that are found naturally on antibodies. Removing the sugar molecules can improve the performance of the antibody in various applications. IgGZERO™ can also help wash away antibody molecules from primary cells. FcDOCKER™ binds specifically to the antibody. This protein is very useful in the antibody production process. Using FcDOCKER™ entails a gentler production process than competing methods and offers great technical and economic advantage. Geographic markets and market strategy Genovis sells to dealers and distributors, who in turn conduct marketing campaigns in different regional markets. The distributors have a good understanding of the business opportunities for Genovis' nanostructures in each region. The company currently has distributors who cover thirteen countries and are geographically scattered from North America across Europe and beyond to the Far East. Sales also take place to some extent directly to end customers in countries where Genovis does not have distributors. Revenues are currently mainly generated from sales of nanoparticles and proteins as consumables, though they are also generated by consulting services combined with the sale of nanoparticles for applications that do not fall within Genovis' standard line of products. One of the objectives for 2009 is to begin generating revenues through OEM sales or the sale of licenses, where either Genovis is responsible for production of the product, which is then sold under a partner's brand, or the partner assumes responsibility even for this portion. In the latter case, revenues can involve both advance payment and royalties per unit sold. In both cases, the counterparty would be responsible for all marketing and sales and the Company has decided to work according to this model for the next two to three years. With respect to sales of custom-made particles mainly for in-vivo studies and imaging, the Company will continue to handle production and delivery to customers or resellers in the future. Sales Net sales during the first quarter were SEK thousand 120 (SEK thousand 106). Two distribution agreements were signed during the quarter, one with Finnzymes Inc. for the US and one with Biozym for Germany/Austria; both distributors have large customer lists that are well-suited for Genovis products. Net Result The operating loss during the first quarter of the year was SEK thousand 3,373 (LOSS: SEK thousand 4,869). Genovis is carrying out a cost-cutting program to reduce the Company's operating costs by 30%. The cost-cutting program will achieve full impact during the third quarter. In contrast with personnel costs in Q 1 2008, Q1 2009 has a charge for accrued vacation pay liability of SEK thousand 174. Depreciation and amortization during the quarter were SEK thousand -256 (-192) including SEK thousand -256 (SEK thousand -142) for tangible assets and SEK – 0 (50 (SEK thousand 50) for intangible assets. The loss after financial items was SEK thousand 3,466 (loss: SEK thousand 4,941). Deferred tax during the quarter was SEK 0 (SEK thousand 1,378). Cash Flow and Financial Position Cash flow from operating activities was SEK thousand –4,498 (SEK thousand -4,262). Cash flow from change in working capital totaled SEK thousand –1,288 (SEK thousand 487). At the end of the period cash and cash equivalents amounted to SEK thousand 1,911. The Group's net investments during the period totaled SEK 0 (0). Net investments included SEK 0 (0) for tangible assets and SEK 0 (0) for intangible fixed assets. Organization and Personnel Genovis' Lund division is responsible for centrally coordinated business and financial functions, as well as production, research and development, marketing, customer support and sales support. The CEO and COO have overall responsibility for the group's business. Genovis Inc. mainly focuses on strategic business development. On March 31, 2009, the Group had nine employees, including nine at the Parent Company and no employees in the United States, compared with eleven people at the Parent Company and one in the United States during the same period last year. The Chairman of the Board of Genovis Inc. is paid a consulting fee when working on projects. Other information Risks and uncertainties Genovis' general view of the financial risks that could affect operations has not changed since the description published in the most recent annual report. For a detailed overview of the company's financial risks please refer to page 41 of Genovis' 2007 annual report. Stock option program The company has 187,000 warrants issued. The warrants may be exercised for subscription of shares between February 28, 2012 and May 31, 2012. When all warrants are fully exercised the company's share capital will increase by a total of SEK 74,800 through the issue of 187,000 shares, each with a par value of SEK 0.40. If the warrants are fully exercised the new shares will constitute 1.7% of capital and votes. The Genovis share is traded on First North, part of the OMX Nordic Exchange. Mangold Fondkommission is the Company's Certified Adviser and liquidity guarantor.