Bergen 14 August, 2006: NorDiag ASA (NORD) achieved revenue of NOK 1.4 million in the second quarter of 2006, compared with NOK 1.0 million in the same quarter last year. Sales volumes of the gene based Genefec test for early diagnosis of colorectal cancer increased by 55 percent. The company is in an advanced stage of negotiations with a major international player in the lab service industry for introduction of Genefec into the UK diagnostics market, and has also managed to position Genefec in two pilot studies for cancer screening programmes in Scotland and the Tuscany region of Italy.

NorDiag ASA had revenue of NOK 1.4 million (1.0) in the second quarter 2006, almost exclusively representing sales in Norway. Denmark and Sweden are expected to contribute to sales during the second half of the year. The operating profit was NOK -7.7 million (-2.0). The wider losses reflect the international roll-out of Genefec, further process and product improvements, ramp- up of laboratory and organisational capabilities for higher expected volumes, and development of new diagnostic products based on existing intellectual property. The company`s net loss for the second quarter was NOK -7.1 million (- 2.2).

During the quarter, NorDiag entered into an agreement with National Health Service Tayside, Dundee, Scotland, which is administering the Scottish bowel cancer screening programme. NorDiag will use Genefec to test samples from individuals who have tested positive on a faecal occult blood test (FOBT) with the aim to further direct the investigations to those individuals most likely to develop cancer. In August, NorDiag entered into a similar agreement with Centro per lo Studio e la Prevenzione Oncologica (CSPO) in Florence in Italy, for a pilot study in the Tuscany region. The potential for product deliveries to the two screening programmes far exceeds the current Genefec volumes.

After the end of the quarter, NorDiag has also entered into a joint development program with Genpoint AS, to develop an automated and improved method for isolation of human DNA from stool. The company also seeks to add further genetic markers to Genefec, and expects to report progress in this area in the second half of the year.

For further information, please contact:
Christian Horn
CEO NorDiag ASA +47 901 63 153