Med BioGene Reports Financial Results for the First Quarter of 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 10, 2010) - Med BioGene Inc. (TSX VENTURE: MBI) today reported its financial results for the first quarter of 2010 (all amounts are in United States dollars).

First Quarter 2010 Financial Results

MBI incurred a loss of $468,120 ($0.01 per share) for the three months ended March 31, 2010, compared to a loss of $443,319 ($0.01 per share) for the three months ended March 31, 2009. MBI did not generate any revenue during the quarter.

Research and Development

Research and development expenses were $131,568 for the three months ended March 31, 2010, compared to $162,599 for the three months ended March 31, 2009, representing a decrease of 19%.

Personnel and consulting costs decreased to $70,766 for the three months ended March 31, 2010 from $99,350 for the three months ended March 31, 2009 as a result of a reduction in the number of MBI’s employees and consultants. License and contract development fees decreased to $35,787 for the three months ended March 31, 2010 from $59,883 for the three months ended March 31, 2009. This decrease was as a result of MBI paying to the University Health Network in the three months ended March 31, 2009 one-time license fees regarding the licensing of certain intellectual property relating to MBI’s lead test under development, LungExpress Dx. Government contributions under an Industrial Research Assistance Program grant relating to MBI’s cardiovascular program were $nil for the three months ended March 31, 2010, compared to $9,179 for the three months ended March 31, 2009. This decrease reflects MBI’s reduced focus in this area, in favor of increased focus on the development of LungExpress Dx. Funding under this grant was exhausted in the first quarter of 2009.

General and Administrative

General and administrative expenses were $ 318,074 for the three months ended March 31, 2010, compared to $263,269 for the three months ended March 31, 2009, representing an increase of 21%.

Personnel and consulting costs increased to $134,517 for the three months ended March 31, 2010 from $112,370 for the three months ended March 31, 2009, mainly due to an increase in the number of MBI’s employees. Payments related to investor relations activities also increased to $85,763 for the three months ended March 31, 2010 from $64,862 for the three months ended March 31, 2009. Stock-based compensation expenses decreased to $27,261 for the three months ended March 31, 2010 from $57,585 for the three months ended March 31, 2009 due to the full vesting of certain option grants.

Liquidity and Capital Resources

Cash used in operating activities was $391,571 for the three months ended March 31, 2010, compared to $255,709 for the three months ended March 31, 2009. The cash used in operating activities consisted mainly of salaries and related employee costs, payments to third parties and company operating costs.

During the three months ended March 31, 2010 and 2009, MBI had no investing activity.

Cash used in financing activities was $257,554 for the three months ended March 31, 2010, compared to none for the three months ended March 31, 2009. For the three months ended March 31, 2010, MBI received $18,525 from the exercise of warrants. MBI capitalized a total of $641,670 in expenses relating to its proposed initial public offering of common shares in the United States, of which $276,079 were incurred during the three months ended March 31, 2010.

About Med BioGene

MBI is a life science company focused on the development and commercialization of genomic-based personalized clinical laboratory diagnostic tests. MBI is committed to advancing personalized medicine by commercializing tests that provide clinically relevant information to improve patient treatment and reduce health care costs. For more information, please visit www.medbiogene.com.

Certain statements in this press release contain forward-looking information and statements (“forward-looking statements”) under applicable Canadian and United States securities legislation. Words such as “anticipates”, “believes”, “estimates”, “expects”, “intends”, “may”, “plans”, “projects”, “will”, “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward looking statements include, but are not limited to, that with respect to future profits, future product revenues, future operations and plans, the use of proceeds from financings, the timing of clinical trials and the completion date for clinical trials and the prospects for negotiating partnerships or collaborations and their timing. These forward-looking statements are only a prediction based upon MBI’s current expectations, and actual events or results may differ materially. MBI may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on uncertain assumptions that could cause MBI’s actual results and the timing of events to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. MBI’s forward-looking statements do not reflect the potential impact of any future partnerships, collaborations, acquisitions, mergers, dispositions, joint ventures or investments that MBI may make. All forward-looking statements are qualified in their entirety by this cautionary statement and MBI undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise after the date of this press release, other than as required by applicable law.

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