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NORDIAG ACHIEVED RECORD RESULTS IN Q3-2009

28 October 2009: NorDiag posted revenues of NOK 27.9 million in Q3-2009, compared to NOK 2.5 million in Q3-2008. Revenues in Q3-2009 is in line with expectations of approximately NOK 60 million for 2009. All time high sales for Infectious Diseases segment in Q3-2009 with NOK 5.4 million. Total revenues boosted by the new segment; HLA Typing (transplantation testing).

Mårten Wigstøl, CEO of NorDiag ASA, is pleased with the progress: "Our revenues grew significantly in the quarter, and our cost cutting program provided solid results. In Q3-2009; NorDiag generated 10 times the revenues compared to  Q3-2008 on approximately the same cost base."

The cost cutting program continues to drive costs down. NorDiag had NOK 12.7 million in total operating expenses in Q3-2009, compared to NOK 13.1 million in Q3-2008. Operating expenses for the infectious diseases segment were NOK 8.6 million which is a decrease of NOK 4.5 million compared to Q3-2008.

NorDiag was close to cash neutral in the quarter with a net cash flow of NOK -0.8 million, while the operating cash flow was NOK -5.6 million. The cash burn in the infectious diseases segment (including former cancer segment) was NOK 6.8 million in Q3-2009, down from NOK 11.1 million in Q2-2009 and NOK 14.8 million in Q1-2009.

The interest for the Arrow instrument continues to be strong. However, sales of Arrow instruments in Q3-2009 were temporarily hampered by manufacturing start-up issues, resulting in a growing order backlog. NorDiag expects to catch up with the majority of the backlog during Q4-2009.

Mårten Wigstøl comments: "We have now restructured the company and established the platform for growth. Going forward, we expect growing revenues from increasing Arrow sales and an expanded base for sale of reagents", and adds:  "As we have stated previously, the combination of cost reductions and increased income will reduce cash burn substantially going forward. Nevertheless, we will need to raise further cash to secure working capital for the growth forward to break-even. DnB NOR Markets has been chosen as manager for a capital raise in the range of NOK 35 - 50 million, which will be carried out during Q4-2009".

Complete Q3-2009 report and presentation are attached.

Contact:
CEO Mårten Wigstøl, phone +47 911 65775

Read the notice in Norwegian here.

Q3 2009 RAPPORT.pdf

Q3 2009 PRESENTASJON.pdf