Innovative Sentinel Principle Technology for Identification of Significant Disease-Specific Blood Biomarkers Earns Recognition from Frost & Sullivan

Palo Alto, Calif. — October 23, 2006 — Frost & Sullivan selected GeneNews Limited (TSX-V:CDG; TSX:GEN, effective October 31, 2006), formerly ChondroGene Limited as the recipient of the 2006 North American Technology Innovation of the Year Award in the field of genetic biomarkers in recognition of its development of a breakthrough technology that uses a novel approach to identify blood biomarkers for specific diseases.

Dr. C.C. Liew, Chief Scientific Officer of GeneNews developed the technology, the Sentinel Principle™, based on the simple idea that gene expression in blood reflects what is occurring in other tissues in the body. This is a result of cell-cell interactions between the blood and tissue that gives rise to molecular signatures in blood, which help in identifying disease-specific biomarkers.

“Every individual has a unique gene expression and most current therapeutic and diagnostic approaches don’t satisfactorily address these genetic differences, which in turn may diminish the effectiveness of treatment,” says Frost & Sullivan Research Analyst Meena Kannan. “It is to cover such gaps in the therapeutic approach that GeneNews applies the Sentinel Principle.”

The technology leverages RNA gene expression to profile information present in the blood and tissue and matches it to specific diseases or medical conditions. Experimentally, these blood biomarkers are identified by studying differentially expressed genes, which are obtained by comparing the gene expression patterns in blood samples from diseased patients and those from control samples.

Further, GeneNews has succeeded in developing a platform technology by combining the Sentinel Principle and its Discovery Funnel™ process, which allows for the identification of blood biomarkers for any medical condition in a much faster, more efficient and affordable manner than other methods. The platform provides superb flexibilities that allow for the generation of biomarker content that can be used for both diagnostic and therapeutic applications.

“Biomarkers could be used to predict the risk of disease, help in early disease diagnosis, determine the stage of disease, identify responders/non-responders to a specific therapy, and monitor progression/recurrence of disease as well as the effects of treatment and treatment compliance,” explains Kannan.

GeneNews is also developing a line of Sentry diagnostic products based on the Sentinel Principle. The initial product in development, ColonSentry™, is a blood-based test to detect colon cancer and pre-cancerous polyps. In addition, GeneNews has conducted initial development in other cancers such as prostate, ovarian, bladder and breast, and in other diseases including cardiovascular disease, central nervous system applications and arthritis.

In recognition of GeneNews’ demonstrated efforts in technology development that led to the introduction of the Sentinel Principle, Frost & Sullivan bestows the Technology Innovation of the Year Award on the company. With this innovative solution, GeneNews could impact the market and reenergize the demand for biomarkers.

Each year Frost & Sullivan presents this Award to a company or individual that has carried out new research, which has resulted in innovation(s) that have or are expected to bring significant contributions to the industry in terms of adoption, change, and competitive posture. The Award recognizes the quality and depth of a company’s R&D program as well as the vision and risk-taking that enabled it to undertake such an endeavor.

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.

About GeneNews

GeneNews 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. GeneNews’ first product in development, ColonSentry™, is a blood-based test that can detect colon cancer and pre-cancerous polyps. For more information on GeneNews, visit www.genenews.com.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company’s industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.awards.frost.com or www.healthcare.frost.com.

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Stacie Jones

Frost & Sullivan

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