25 June 2009: NorDiag has evaluated its product portfolio in order to streamline the operations towards profitability. The outcome of this evaluation is that the Company has decided to reduce number of instrument platforms in it's portfolio and increase number of applications on its Bullet and Arrow instrument platforms. As a result of this strategic decision, the Board of Directors of NorDiag has today decided to write down NOK 23.3 million in excess values related to the Magnatrix product line.

The triggering event that caused this write down is lower sales of the product compared to expectations. However, the decision will not have a major impact on NorDiags total revenues in 2009. This sales trend is expected to continue, seen in relation to the resources NorDiag can afford to use on this product line.  An impairment test has been conducted, which indicates that the recoverable amount of the asset is less than book value, and a write down has been performed to the value in use of the asset. The value in use has been calculated based on estimates of the future cash flows that is expected to derive from the Magnatrix product line using the same pre-tax discount rate as stated in the Annual report of 2008 (16.04%).

The Magnatrix product line derives from the acquisition of Magnetic Biosolutions AB (now NorDiag AB) which was conducted by Genpoint AS in 2006. Genpoint was acquired by NorDiag in 2007.  The market for Magnatrix products is very competitive with low margins and it is out of core business for NorDiag. The Company will continue to supply and support its existing customers.

The write down has no cash effect, nor does it have an impact on the strategy going forward where the focus is commercialization of NorDiag's "Bullet" and "Arrow" sample prep solution, with focus on difficult sample material.

Contact:
CEO Mårten Wigstøl, phone +47 911 65775
CFO Tone Kvåle, phone +47 915 19576.

About NorDiag:
NorDiag is a biotechnology company developing, manufacturing and marketing automated solutions, instruments and tests, for use in 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, MRSA and DNA from stool. Applications for respiratory pathogens and viruses are under development. NorDiag was founded in 2003 and has its headquarters in Oslo - Norway. The Company has offices and laboratories in Stockholm - Sweden and West Chester (PA) - USA. The group has 31 man years. NorDiag is listed on Oslo Stock Exchange with the ticker NORD.

For further information - www.nordiag.com

Read the notice in Norwegian here