TORONTO, ONTARIO -- (Marketwire) -- 08/11/10 -- GeneNews Limited (TSX: GEN), a company focused on developing blood-based biomarker tests for the early detection of diseases and personalized health management, today reported operational and financial results for the three- and six- months ended June 30, 2010.

Recent highlights:

--  Executed a formal marketing partnership agreement with GeneDiagnostics
    Inc. to market and sell ColonSentry™, the world's first blood-based
    test to determine a person's current risk for colorectal cancer, in
    China.

--  Presentation of positive ColonSentry™ validation data from a 210-
    patient Malaysian study entitled "Blood-based Seven-gene Biomarker Panel
    for Colorectal Cancer: Validation in Malaysia" at the 2010 National
    Committee for Clinical Research conference, Kuala Lumpur, Malaysia June
    2 to 4.

--  Granted two new U.S. patents for Schizophrenia and Osteoarthritis,
    representing specific practical applications of the Company's core
    platform technology, the Sentinel Principle®.

--  Management and Board changes including the appointment of Ms. Leslie
    Auld as Chief Financial Officer, the election of Ms. Gailina J. Liew,
    GeneNews' President and Chief Operating Officer, to the Company's Board
    of Directors and the re-election of six incumbent directors at the
    Company's annual shareholder meeting.

"Throughout the second quarter, we continued to focus on the commercialization of our lead product, ColonSentry™. Now, as we move into the second half of the year, we will continue to work with our U.S. marketing partner, Enzo Clinical Labs, and our Chinese marketing partner, GeneDiagnostics, as they prepare to launch ColonSentry in their respective territories," said Ms. Liew. "At the same time, we will continue to pursue financing activities and discussions with additional potential ColonSentry™ marketing and strategic partners for other regions of the United States, Europe and Asia."

Financial results:

For the three months ended June 30, 2010, the Company reported a consolidated net loss of $1,291,648, or $0.02 loss per common share, as compared to a consolidated net loss of $1,755,474, or $0.03 loss per common share for the three months ended June 30, 2009. For the six months ended June 30, 2010, the Company reported a consolidated net loss of $2,729,136, or $0.04 loss per common share, as compared to a consolidated net loss of $3,724,755, or $0.07 loss per common share, for the six months ended June 30, 2009. This year-to-date improved financial performance is primarily due to a 38% reduction in research and development costs that resulted from reductions in the number of scientific and technical staff needed to support the Company's ColonSentry™ test service through its Canadian operations.

As at June 30, 2010, the Company's unrestricted cash and cash equivalents, cash held in trust and short-term investments amounted to $1,090,144. Subsequent to quarter-end, the Company received over $800,000 in non-dilutive cash, primarily into the Company's Malaysian subsidiary for the development of liver cancer and hepatitis biomarkers.

As previously disclosed, the Company has retained Dundee Securities Corporation, a Canadian-based investment dealer, and Reedland Capital Partners, an institutional division of Financial West Investment Group, Inc., a US-based, SEC-registered broker-dealer, to assist in expanding the Company's shareholder base and accessing additional working capital to support the pursuit of its milestones in 2010.

The Company's financial statements and management's discussion and analysis are available on www.sedar.com.

About GeneNews

GeneNews is an emerging molecular diagnostics company focused on the application of functional genomics to enable early diagnosis and personalized health management based on disease-specific biomarkers. The Company has a patented core platform technology, the Sentinel Principle®, which has the power to detect and stage virtually any disease or medical condition from a simple blood sample. GeneNews is currently applying the Sentinel Principle® in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. GeneNews launched its first commercial product, ColonSentry™, a blood-based test to pre-screen and assess an individual's risk for colorectal cancer, in Canada in 2008. The company's first US marketing partner, Enzo Clinical Labs, is expected to launch the ColonSentry™ test in New York and New Jersey in the second half of 2010. For more information on GeneNews and ColonSentry™, visit www.genenews.com or www.ColonSentry.com.

Forward-Looking Statements

This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements.

GeneNews Limited

                        CONSOLIDATED BALANCE SHEETS
                                (Unaudited)
                      (Expressed in Canadian dollars)

As at

                                                     June 30,   December 31,
                                                        2010           2009
                                                           $              $
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ASSETS
Current
Cash and cash equivalents                            191,864        510,806
Cash held in trust                                         -      2,286,200
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                                                     191,864      2,797,006
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Restricted cash                                      252,134        252,054
Short-term investments                               898,280         91,710
Accounts receivable                                   31,443        293,528
Investment tax credits recoverable                   303,484        400,000
Prepaid expenses and deposits                        144,726        126,505
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Total current assets                               1,821,931      3,960,803
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Property, plant and equipment, net                 2,413,734      2,698,450
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                                                   4,235,665      6,659,253
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities             809,283      1,159,141
Deferred revenue                                       3,750         10,200
Current portion of long-term debt                     85,998         82,690
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Total current liabilities                            899,031      1,252,031
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Convertible debentures                             2,939,603      2,662,677
Long-term debt                                        93,015        136,858
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Total liabilities                                  3,931,649      4,051,566
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Subsequent events
Commitments

Shareholders' equity
Capital stock                                     48,752,731     48,752,731
Warrants                                           1,020,486      1,020,486
Contributed surplus                                5,373,437      4,947,972
Deficit                                          (54,842,638)   (52,113,502)
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Total shareholders' equity                           304,016      2,607,687
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                                                   4,235,665      6,659,253
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GeneNews Limited

             CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
                                (Unaudited)
                      (Expressed in Canadian dollars)



                  Three months   Three months     Six months     Six months
                         ended          ended          ended          ended
                       June 30        June 30        June 30        June 30
                          2010           2009           2010           2009
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REVENUE
  Milestone
   revenue        $          -  $      96,744  $           -  $      96,744
  Non-refundable
   license revenue      13,454              -         13,986        254,460
  Sales                  5,590         16,500          9,475         21,250
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                        19,044        113,244         23,461        372,454

EXPENSES
  Research and
   development         518,446        736,197        993,436      1,600,563
  Sales and
   marketing            31,502         50,457         87,982        270,564
  General and
   administrative      273,143        441,623        678,999        988,757
  Stock-based
   compensation        205,851        314,068        425,465        590,455
  Amortization of
   property, plant
   and equipment       146,772        200,634        293,715        392,485
  Foreign
   exchange (gain)
   loss                 (5,713)        (4,110)        (9,526)        17,870
  Interest on
   long term debt      142,254        139,021        284,906        249,407
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                     1,312,255      1,877,890      2,754,977      4,110,101
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Interest income          1,563          9,172          2,380         12,892
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Net and
 comprehensive
 loss for the
 period             (1,291,648)    (1,755,474)    (2,729,136)    (3,724,755)

Deficit,
 beginning of
 period            (53,550,990)   (48,488,914)   (52,113,502)   (46,519,633)
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Deficit, end of
 period          $ (54,842,638) $ (50,244,388) $ (54,842,638) $ (50,244,388)
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Net and
 comprehensive
 loss per common
 share
  Basic and fully
   diluted        $      (0.02) $       (0.03) $       (0.04) $       (0.07)
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Weighted average
 number of common
 shares
 outstanding
  Basic and fully
   diluted          69,027,881     55,883,437     69,027,881     55,883,437
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