ChondroGene Inc. Release: Blood-based Osteoathritis Biomarker Paper Published

TORONTO, Oct. 25 /PRNewswire-FirstCall/ - ChondroGene Limited announced today that its paper entitled “Blood-based biomarkers for detecting mild osteoarthritis in the human knee” has been published in the October issue of the journal Osteoarthritis and Cartilage. The paper, co- authored by ChondroGene’s scientists, outlines a study that used the Company’s Sentinel Principle for the discovery of blood-based biomarkers that were able to identify patients with early stage, asymptomatic osteoarthritis (OA). The abstract is available at www.intl.elsevierhealth.com/journals/joca/.

The study identified 3,543 genes in blood that are differentially expressed in patients with mild osteoarthritis versus controls. Smaller numbers of genes, 6 to 9, were then selected from the initial group and were evaluated on a blind set of samples, achieving a sensitivity of 72% and a specificity of 66% in identifying patients with mild, asymptomatic OA. This is the first time that a gene expression blood test has been shown to detect asymptomatic OA in patients.

In March 2005, ChondroGene received support from National Research Council Canada Industrial Research Assistance Program (NRC-IRAP) to assist in the development of an OA diagnostic, based on the Sentinel Principle, to detect and stage OA from a blood sample. The proposed work expands upon these initial results. The eventual commercial product is expected to be able to identify patients with OA, stage the severity of disease, monitor the progression of disease, and response to therapy.

In the area of arthritis, ChondroGene also has a collaboration with Pfizer Inc to use the Sentinel Principle to identify blood-based biomarkers for use in their OA drug development programs. Pfizer will use the information provided to discover and develop disease modifying OA drugs (DMOADs) which will target the disease process, rather than treating only the symptoms of the disease. ChondroGene’s diagnostic biomarkers will be invaluable in monitoring the effectiveness of these new drugs as they are developed. ChondroGene entered into the 2-year collaboration with Pfizer in October 2004. The current collaboration is a continuation of an initial 2-year agreement entered into in October 2002 that was successfully completed in October 2004.

“Even though our near term commercial focus is on cancer diagnostics, we continue to work with Pfizer to develop novel diagnostic and therapeutic approaches for osteoarthritis. As this paper shows, we are making exciting progress in the area of blood-based biomarkers for osteoarthritis,” stated K. Wayne Marshall, President and CEO of ChondroGene. “OA is a disease that afflicts a large number of people worldwide, with effects that can be debilitating and life altering. Our belief is that our technology will be instrumental in aiding the development of disease modifying drugs, and that our diagnostic tests will be able to detect and monitor those patients with OA who can benefit from disease modifying OA therapies.”

About ChondroGene

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ChondroGene is focussed on the application of functional genomics to enable early diagnosis and personalized therapeutic intervention based on disease-specific biomarkers. The Company has developed a novel approach, the Sentinel Principle, to detect and stage virtually any disease or medical condition from a simple blood sample. ChondroGene is currently applying the Sentinel Principle in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. For more information on ChondroGene, visit www.chondrogene.com.

This press release contains forward-looking statements, which reflect the Company’s current expectations regarding future events. These forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein. Investors should consult the Company’s ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements.

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ChondroGene Limited

CONTACT: Dr. K. Wayne Marshall, President & CEO, (416) 650-0060 x234,wmarshall@chondrogene.com; Bruno Maruzzo, Corporate Development, (416)650-0060 x237, bmaruzzo@chondrogene.com