Report from first quarter 2011

Driving pharma collaborations and innovation forward

The interim report for the first quarter 2011 was approved by the Board of Directors on 11 May 2011. Please find the interim report and presentation attached.

Highlights from the report:

• Collaboration with Pfizer on developing MCI and Alzheimer Disease progression biomarkers proceeds according to the study plan
• Collaborative discussions with multiple leading pharmaceutical and imaging companies on using blood based early Alzheimer Disease diagnostics progress satisfactorily
• Appointed the Ferghana Partners Group for support on commercial transactions with pharmaceutical and diagnostic partners

The Pfizer project is advancing according to the expected timelines in the contract. The collaboration with Pfizer aims to identify a diagnostic tool that can help patient stratification in Alzheimer Disease drug trials. DiaGenic has built a unique biobank with blood samples from our clinical trials which are used in the Pfizer project. By end of quarter DiaGenic had finalized two out of four work packages and managed to complete 50% of the analysis. Post lab analysis the subsequent complex bioinformatic study contains analysis of > 200.000 individual PCR reactions and subsequent biological modeling. These initial results will provide the foundation for a milestone based commercial collaboration with Pfizer.

In parallel with the Pfizer study, we have continued promoting our capabilities, core assets and diagnostic tests to the leading pharma companies who are heavily engaged in the Alzheimer field. The feedback on our concept and value proposition is encouraging. In addition discussions are progressing with producers of amyloid PET tracers on R&D collaborations to demonstrate diagnostic comparability.

To support the business development activities within both the Breast Cancer and the CNS fields, DiaGenic has appointed the Ferghana Partners Group, an international leading investment banking group specialized in senior level corporate finance advice to firms in the Biotechnology, Pharmaceuticals, Diagnostics and Specialty Chemicals industries. Ferghana will identify potential licensees of DiaGenic’s technology and advise on potential commercial transactions subsequent of their and DiaGenic’s ongoing interactions with pharma and diagnostic companies.

Operating revenue were NOK 1,608 thousand in first quarter 2011 compared with NOK 0 in first quarter 2010. Comprehensive income totalled NOK -9.0 million for the first quarter in 2011 compared with NOK -11.8 million in the corresponding period in 2010. Total operating costs for the first quarter in 2011 amounted to NOK 11.2 million compared with NOK 11.9 million in the first quarter in 2010. The company’s cash and cash equivalents totalled NOK 86.7 million at 31 March 2011.

 Future prospects

• Execute on the companion diagnostics initiative, closing R&D and licensing agreements with pharmaceutical and imaging companies operating in the CNS field
• Successfully deliver and leverage the Pfizer collaboration in 2011
• Strengthen and align the organization to support the company’s strategy

 Attachments: The interim report and presentation

Contact:

Erik Christensen, CEO

Telephone: 47 95939918

e-mail: erik.christensen@diagenic.com

About DiaGenic ASA

DiaGenic is an innovative Norwegian biotechnology company that seeks to create value for patients, partners, and investors by developing new and more patient friendly methods for early detection of diseases. DiaGenic is currently a world leader in analyzing gene expression signatures related to disease in easily available clinical samples such as peripheral blood. This unique method is based on the principle that even when a disease is localized at a specific part of the body, secondary responses, which are also characteristic of the disease, can be measured in other parts of the body. DiaGenic has developed and CE marked two blood based diagnostic tests, BCtect® for early breast cancer detection and ADtect® for early detection of Alzheimer’s Disease. The company protects its technology through an extensive patent portfolio. DiaGenic promotes its products towards leading pharmaceutical and imaging companies, and towards clinicians. DiaGenic is listed on the Oslo Stock Exchange. For more information visit www.diagenic.com