Biomoda Comments on Recent Stock Activity

ALBUQUERQUE, N.M., May 31 /PRNewswire-FirstCall/ -- Biomoda, Inc. , Albuquerque, New Mexico, (http://www.biomoda.com), maker of patented early lung cancer detection testing and other cancer diagnostic technology, said today that its Board of Directors has announced that the Company is not aware of any factor, internal or external, which would have impacted the recent price decline of its publicly traded common shares.

"It is puzzling to me why there has been such volume, and downward pressure, on our stock price in the past several weeks and especially in the last few days. The strong fundamentals of the Company have not changed," said John Cousins, Biomoda President. "Our technology is sound and strong, we have made major strides in our development efforts, and our prospects for revenues in the near future remain significant. The present value of our future cash flow should value Biomoda at fifteen or twenty million, instead of the approximately three million current market valuation."

"Biomoda's existing relationships are excellent and we are developing important new alliances," said Dr. Herbert Whitaker, Director of Research. "We have an outstanding relationship with Los Alamos National Laboratories related to our intellectual property licensing and they are a shareholder in Biomoda. We are actively working on our validation study with the prestigious Mayo Clinic in Minnesota. From a business development perspective, the Company is moving into the government and military markets and continues to cultivate potent new collaborations."

"Safe Harbor" Statement: This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are naturally subject to uncertainty and changes in circumstances. Actual results may vary materially from expectations contained herein. Biomoda is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: Biomoda, Inc., Albuquerque John Cousins, President 505-821-0875

CONTACT: John Cousins, President, of Biomoda, Inc., Albuquerque,+1-505-821-0875

Web site: http://www.biomoda.com//