Financing DiaGenic - Private Placement completed

Oslo, 26 November 2009: DiaGenic ASA ("DiaGenic"or the "Company" - OSE: DIAG), With reference to stock exchange release dated 25 November 2009 regarding the contemplated capital increase in the Company (the "Private Placement"). The bookbuilding period has now ended, and the Private Placement was over-subscribed. The Company is pleased to inform that it has resolved to issue 12.5 million shares. The subscription price in the Private Placement is set at NOK 2.75 per share, and gross proceeds will thus be NOK 34.4 million. To promote equal treatment of the shareholders, the board of directors of DiaGenic has decided to propose a subsequent repair offering (the "Subsequent Offering"). Furthermore, the board of directors of DiaGenic has decided to propose the issuing of Warrants (independent subscription rights) to subscribers of shares in the Private Placement and the Subsequent Offering. Provided that both the Subsequent Offering will be fully subscribed and that all Warrants are exercised, aggregated gross proceeds will total NOK 96 million. The Private Placement is equivalent to approximately 23% of the outstanding shares in the Company. When the capital increase is registered, the total amount of shares in DiaGenic will increase from 54 236 520 to 66 736 520 shares, each with a nominal value of NOK 0.05 per share. The share capital will increase from NOK 2 711 826 to NOK 3 336 826 at the registration of the capital increase. Argo Securities AS and Orion Securities AS have acted as the managers in the Private Placement. The purpose of the Private Placement is to finance operating costs and to strengthen the Company’s working capital requirements. Priorities include sales and marketing in Europe, establish market access in the USA, and development of the biomarker and companion diagnostics business. Shares subscribed for in the Private Placement are expected to be delivered to the subscribers VPS-accounts around 8 December 2009 subject to the necessary listing prospectus being approved by Oslo Børs within this date and made public according to the Securities Trading Act section 7-19. To promote equal treatment of the shareholders, the board of directors of DiaGenic has decided to propose a subsequent repair offering of up to 3.5 million shares at NOK 2.75 per share directed at shareholders of the Company as of 25 November 2009 that were not allocated shares in the Private Placement. The shares in DiaGenic will trade without the right to participate in the Subsequent Offering from and inclusive today 26 November 2009 (ex-date). For the Subsequent Offering it will be proposed to issue tradable subscription rights that are applied for listing. The board of directors of DiaGenic has decided to propose the issuing of independent subscription rights to subscribers of shares in the Private Placement and the Subsequent Offering. For each share subscribed for, an independent subscription right valid to and inclusive 31 August 2010 with a strike price of NOK 3.25 will be proposed allocated. The independent subscription rights will be tradable, but will not be proposed listed. These can be exercised three times during the period; the last business day in February and May 2010, in addition to 31 August 2010. Unused independent subscription rights will lapse after 31 August 2010. The board of directors will call for a general meeting on 18 December 2009 with a proposal to pass the Subsequent Offering and issuing of the independent subscription rights. The Subsequent Offering is expected completed in January 2010 subject to the approval of the necessary resolution in the general meeting. For further information, please contact: Håkon Sæterøy (chairman of the board), phone +47 92 69 51 75