NorDiag ASA concluded the clinical trial vs Roche Taqman 48 analyzer and Taqman CT Test kit succesfully in October. This forms a good foundation for further commersialization. The clinical testing of Genefec III is still in progress, as stated in the company`s third quarter report. NorDiag received NOK 30.2 million from the public offering and additionally NOK 4 million in risk loan from Innovation Norway. The Company is working on a financial plan for 2009.

NorDiag had operating revenues of NOK 2.5 million and other revenues of NOK 1.2 million in Q3-2008, compared with NOK 3.1 million and NOK 1.6 million in Q3-2007. Corresponding figures in Q2-2008 were NOK 3.2 million and NOK 0.6 million. The operating revenues in Q3-2008 are below previous quarter due to lack of instrument sales. This was attributable to several customers awaiting the results from STI clinical trials before agreeing to take an instrument for testing followed by a potential purchase decision. NorDiag has previously indicated strong instrument sales in Q4-08 and we reiterate this position based on the fact that the Company already in October has orders for several instruments.

Other key figures in the Q3 report:

Total operating expenses in Q3-2008 were NOK 13.2 million compared to NOK 15.5 million in Q3 last year and NOK 10.5 million in previous quarter.

EBITDA before restructuring in Q3-2008 was NOK - 10.4 million compared to NOK - 12.2 million in Q3- 2007, and NOK - 7.9 million in Q2-2008.

Profit before tax for Q3-2008 was NOK - 12.5 million compared with NOK - 17.2 million in Q3- 2007. Profit before tax in the second quarter 2008 was NOK - 10.5 million.

Segment Infectious Diseases
NorDiag has successfully completed its STI clincial trial versus Roche STI testing being performed on Taqman 48 analyzers. The outcome of the STI clincial trial for Becton Dickinson STI testing being performed on the ProbeTec analyser is expected early November.

Taking in complementary products to drive sales is an element of the strategy going forward. The first step in this respect is the agreements with the German company Molzym regarding distribution of their sepsis kit in Scandinavia and North America. It is also intended to offer an OEM agreement for NorDiag`s products to Molzym, which will open for cross-sales and further increasing revenues. Another agreement with the US company Spartan was published on October 29.

The results from the clinical trials, launch of new desk top instrument and sales of third party products are expected to increase the company`s revenue from Q4-08 and forward.

Segment Cancer
The clinical validation of cancer test will be concluded in November and the further strategy in this segment will be decided based on this. The collaboration with Exact where Nordiag is tailoring its automated sample preparation solution to their DIA test is progressing well. NorDiag`s ultimate goal beyond an integrated test is to position its automated sample prep solution to other tests in this field in order to participate in a potential success.

Outlook
Net cash flow in Q3-2008 was NOK 13.2 million, giving cash balance at the end of Q3-2008 of NOK 24.9 million. Given the current income and cost level and actual business plans, the Company will need additional financing before it will generate a positive cash flow.

Board and management are dealing with this in several ways. Success in STI clinical trials will be the backbone for strong growth in the infectious disease business and there is already a strong traction in October. Launch of the new desk top instrument (Arrow) with four applications will contribute to sales from second half of Q1-09 and onwards. A new element in the strategy is to distribute third party products that are complementary to NorDiag`s product portfolio in regions where we sell directly. Cost cutting actions are being implemented and further actions considered. The financial turmoil and credit crunch affects the investment sentiment for the Company. The Company is working on alternatives to raise further cash, including share offering and convertible loan. A financial plan covering 2009 is expected to be released soon.

Complete Q3 report and presentation is attached.

Contact:
CEO Mårten Wigstøl, Phone: +47 91165775

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

Find the attached Q3 report and presentation here

Read the Notice in Norwegian here