Pharma and Imaging Companies interactions have progressed

The interim report for the second quarter and the first half of 2010 was
approved by the Board of Directors on 18 August 2010. Please find the
report and the investor presentation attached.

Highlights from the report:

·
Distributor sales continue to be slow and below expectations - BCtect®
is promoted by the first clinic in UK and 6 more is starting after
summer

·
Strength of IP and competitive position drives Pharma and PET imaging
companies' interest in DiaGenic. Multiple interactions ongoing in
Alzheimers area (ADtect/MCItect)

·
New Board of Directors elected - more focus on partnering options for
DiaGenic

·
Notice of Allowance on a family 3 Patent covering 30 countries in Europe

The sales of ADtect® and BCtect® through distributors are building
slowly and below expectations. The market barriers for direct sales of
new innovative diagnostic products using gene expression remain high.

Providing biomarkers for drug development and companion diagnostics is a
key strategic focus area for DiaGenic and has been a priority in the
last quarter.

World leading Pharma and Imaging companies have expressed their interest
in collaboration with DiaGenic, triggered by our strong IP and
development of ADtect®, - the world's first CE-market blood based test
for early Alzheimer's disease detection, and our unique competitive
advantage and capabilities in developing biomarkers by measuring gene
expression in blood. These companies state the need for an easy to use
biomarker and finally an IVD approved diagnostic test, such as a blood
test, for patient selection for treatment or for qualifying to a high
cost PET imaging.

DiaGenic's vision for such collaborations is companion diagnostic
products with the use of DiaGenic's blood based tests together with a
new drug or imaging product. DiaGenic recognises the extensive marketing
and sales organizations such companies represent.

Supporting the renewed focus, in June a new board of Directors was
elected. The Board has extensive experience from international
pharmaceutical industry, chaired by Henrik Lund MD PhD, former Vice
President in AstraZeneca and vice-chairman Ingrid Wiik M Pharm & MSc,
former CEO in the NYSE listed Alpharma Inc. Also 4 of the other board
members have background from this industry segment.

After the second quarter, the company received "Notice of Allowance" in
Europe for its family 3 patent application. The claims allowed cover a
set of gene sequences for diagnosis of breast cancer. The patent when
granted will be valid in 30 European countries. DiaGenic has now more
than 100 patents (granted/allowed) within the three patent families,
reflecting its position as a world leader among molecular diagnostic
companies involved in developing blood based gene expression tests.

Comprehensive income totalled NOK -10.5 million for the second quarter
in 2010 compared with NOK -7.5 million in the corresponding period in
2009. Total operating costs for the second quarter in 2010 amounted to
NOK 10.5 million compared with NOK 7.6 million in the second quarter in
2009. The company's cash and cash equivalents totalled NOK 19.8 million
at 30 June 2010.

During the first half of 2010 the Company issued 16 million warrants.
Each warrant holds the right to subscribe for one new share in the
Company at a subscription price of NOK 3.25 per share. The due date to
call the warrants is set to 22 September 2010.

Future prospects

· Accelerate the companion diagnostics strategy, including marketing
of our biomarkers to the pharmaceutical and imaging industry, leading to
partnering agreements.
· Gain market acceptance of BCtect® and ADtect® in selected countries
in Europe.
· Continue with ADtect® US market entry plan

Attachments: The Interim Report and Presentation

Contact:

Erik Christensen, CEO

Telephone: 47 95939918

e-mail: erik.christensen@diagenic.com