DISTRIBUTION AGREEMENT FOR INDIA

Reference is made to the announcement issued by DiaGenic ASA on 29 April 2008 regarding signed “Memorandum of Understanding” (MoU) with SRL Ranbaxy LTD for distribution of Diagenic’s breast cancer test in India. The negotiations are now concluded and the distribution agreement is signed by both parties.

DiaGenic has been negotiating with key partner candidates for the distribution of the breast cancer test in India. Following the signed MoU’s the negotiations have been continued with both of the two candidates on the short list. Today, the board of directors of DiaGenic has confirmed its preference for the largest laboratory chain in India; SRL Ranbaxy LTD, and the parties have signed the distribution agreement.

The agreement implies that SRL Ranbaxy will become the commercial partner for DiaGenic’s diagnostic test for breast cancer in India and ancillary territory. SRL Ranbaxy, the largest laboratory chain in India with more than 700 hundred collection centres and laboratories over the entire region, will market and sell the test. SRL Ranbaxy will also be responsible for the collection of blood samples.

DiaGenic will receive a Technical Services Fee of INR 2.500 per test sold. After deduction of the agreed costs to DiaGenic’s Indian agent, DiaGenic will receive approximately NOK 300 per test (at present foreign exchange rates). Further, the agreement implies an obligation for SRL Ranbaxy to invest substantially in marketing of the test during the first year. The agreement is mutually exclusive, and contains clauses about minimum volumes as from year two. Numbers for minimum volumes and the investments in marketing are not disclosed.

The parties have worked out a joint international press release about the agreement; please find this press release enclosed.


Contact:

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