27 Feb 2008: Lower cash burn in Q4 2007 - increased revenues expected in 2008

NorDiag had sales revenues of NOK 2.8 million and other revenues of NOK 1.2 million in Q4-07 compared with NOK 2.8 million and NOK 1.9 million in Q3-07. The corresponding figures in Q4-06 were NOK 1.3 million and NOK 1.2 million. The sales from infectious diseases are growing, but due to the withdrawal of the cancer test, Genefec II, the consolidated sales were on a level with previous quarter. Loss before taxes in Q4 was NOK - 12.1 million, compared with NOK - 17.2 million in Q3 07 and NOK - 5.6 million in the Q4 2006.

For the full year 2007 the net loss was NOK - 56.9 million compared with a net loss in 2006 of NOK - 25.7 million. The cash balance decreased from NOK 46.9 million end of Q3 07 to NOK 36.2 million end of Q4 07. The Board of Directors and management expect increased revenues and lower operational expenses during 2008, and accordingly lower cash burn.

NorDiag acquired Genpoint in March 2007 and established the Infectious diseases business. Comparing sales revenues from pro forma figures Year on Year underlines the growth in this business area. Total pro forma sales revenues in 2007 were NOK 11.9 million compared with NOK 12.6 million in 2006. Infectious diseases had pro forma sales revenue in 2007 of NOK 8.7 million, up from NOK 6.8 million in 2006.

Net cash flow for the fourth quarter was NOK - 10.7 million compared with NOK 14.7 million Q3 2007. The close down of the service laboratory in Bergen has been concluded, and a new organization is now in place with increased focus on kit development, and international marketing and sales. As a result of these actions, the Company has reduced its cash burn.

NorDiag Inc, US is starting to show traction, and the first revenues are expected in Q2-08. Negotiations and technical clarifications with potential strategic-partners continue, as such strategic sales are supposed to be a major channel for sample prep and instruments. Agreements are getting closer, but will still take some time to conclude.

The company is currently working on expanding the scope in tuberculosis testing. The new concept shows very promising pre clinical data and the market potential for such a test is more than 130 million tests world wide.

Design for a new Genefec test for colorectal cancer (CRC) has been decided, and analysis and development started. The new test will be ready for pre clinical testing during second half of 2008 and launched - first half of 2009. An important part of the CRC business model going forward will be to offer the automated sample prep for CRC testing to partners with complementary analysis systems/technology.

Full quarterly report is attached.

Contact:
CEO Mårten Wigstøl Phone. +47 911 65775

About NorDiag ASA:
NorDiag is a biotechnology company developing, manufacturing and marketing of automated solutions, instruments and tests, for diagnostic of cancer and infectious diseases. The Company`s first product in cancer diagnosis is Genefec TM for diagnosis of colorectal cancer. NorDiag has also launched a product for diagnostic of sexual transmitted infectious. In addition, the company has other applications for early diagnosis of cancer under development, as well as applications for other infectious diseases in the product pipeline. NorDiag is listed on Oslo Stock Exchange with the ticker NORD.

Link to the Stock Exchange Notice with the Q4 report and presentation here