16 January 2009:Oslo, Norway, 16 January 2009 - The Oslo Stock Exchange approved yesterday, 15 January 2009,  the prospectus prepared in connection with the rights issue and listing of up to 120,234,510 new shares in NorDiag ASA (`NorDiag` or the `Company`).

The subscription period for the new shares in NorDiag commences today, 16 January 2009, and expires on 30 January 2009 at 17:30 (CET). The Company will obtain minimum NOK 25 million and maximum NOK 60 million in new equity by issuance of up to 120,234,510 new shares at subscription price of NOK 0.5 per share.

The Company`s shareholders as of 19 December 2008 have pre-emptive right to subscribe for and be allotted new shares. Transferable subscription rights are issued for this preferential right. Each share in NorDiag owned as per 19 December 2008 entitles to a subscription of 2.25 shares in the rights issue. Over-subscription is permitted.

Together with the new shares, the subscribers are invited to subscribe for warrants. Each new share subscribed for and allocated gives the right to subscribe for and receive, 0.5 warrant with duration until the end of September 2009 and 0.5 warrant with duration until the end of June 2010. Both warrants have the same strike price of NOK 0.5.

An underwriting syndicate has been established for subscription of new shares for a total value of NOK 25 million in the rights issue. The underwriters` relative responsibility will be reduced only when total subscription in the rights issue reaches NOK 35 million, i.e. when the total proceeds in the rights issue reach NOK 60 million. Each syndicate member will be entitled to 0.1 warrant with duration to the end of September 2009 and 0.1 warrant with duration to the end of June 2010 respectively for each NOK 0.5 underwritten.

Orion Securities AS is engaged as manager for the rights issue.

Background for the rights issue
The purpose of the right issue is to secure sufficient working capital for the Company until the Company is fully financed through its own operations. The Company has a capital need of NOK 50 million before break even is planned to be reached in 2011. The capital is intended to be used on commercialization, working capital to support growth, as well as development of new applications.

NorDiag has during the second half of 2008 reached important milestones. As previously announced, the Company has delivered successful clinical documentation within the area Sexually Transmitted Infectious (STI) for its  `Bullet` instrument and sample preparation kits combined with Roche`s Taqman 48 and Becton Dickinson`s ProbeTec analysers and test kits.

This has provided a platform for strong growth of 88% in Q4 2008, compared to previous quarter. The growing sales volume in Q4 2008 is a result of significantly increased sales run rate based on achieved milestones. Completion of the Company`s new desktop instrument, for which the Company expect to commence the placing of instruments at customers` locations in January 2009, will further stimulate volume growth.

Within the Cancer area there is also positive development. Clinical results for the Company`s test, which is to contribute to diagnosis of colorectal cancer, confirm the targeted combined sensitivity (80%) and specificity (90%) in combination with Hemocult FOBT test which was used in the study.

NorDiag`s future business will be more focused on sales. R&D resources will be moved to sales and the sales organisation will be strengthened. The Company will seek a strategic partner for commercialisation of its test for diagnosis of colorectal cancer, and the Company will initially focus on the German market.

As a consequence of the new priorities, the Board of Directors in NorDiag has approved a plan for further cost reductions. The research laboratory in Bergen will be closed down. The Company`s staff will be reduced by 6 employees, in addition to reduced use of external consultants. The plan will give annualized cost reductions of NOK 9.5 million, with an effect of up to NOK 7 million in 2009.

Prospectus is available at: www.nordiag.com

Contact:     
CEO Mårten Wigstøl     
Phone: +47 911 65775 or
morten.wigstol@nordiag.com
                 
CFO Tone Kvåle            
Phone: + 47 915 19576 or
tone.kvaale@nordiag.com

About NorDiag:
NorDiag is a biotechnology company developing, manufacturing and marketing automated solutions, instruments and tests, for diagnostic of infectious diseases and cancer. The Company`s core competence is isolation of bacterial and human DNA from difficult clinical samples, and the Company has established a solid market share in the Scandinavian market for sexually transmitted infections. The company has similar applications for Tuberculosis and MRSA. An application for respiratory pathogens is under development. NorDiag is also developing a test that shall contribute to early diagnosis of colorectal cancer. NorDiag was founded in 2003 and has its headquarters in Oslo - Norway. The Company has offices and laboratories in Bergen - Norway, Stockholm - Sweden and West Chester (PA) - USA. The group has 39 employees. NorDiag is listed on Oslo Stock Exchange with the ticker NORD. For further information - www.nordiag.com

Read the notice in Norwegian here