DISTRIBUTION AGREEMENT FOR INDIA

Reference is made to the announcement issued by DiaGenic ASA on 29 April
2008 regarding signed "Memorandum of Understanding" (MoU) with SRL
Ranbaxy LTD for distribution of Diagenic's breast cancer test in India.
The negotiations are now concluded and the distribution agreement is
signed by both parties.

DiaGenic has been negotiating with key partner candidates for the
distribution of the breast cancer test in India. Following the signed
MoU's the negotiations have been continued with both of the two
candidates on the short list. Today, the board of directors of DiaGenic
has confirmed its preference for the largest laboratory chain in India;
SRL Ranbaxy LTD, and the parties have signed the distribution agreement.

The agreement implies that SRL Ranbaxy will become the commercial
partner for DiaGenic's diagnostic test for breast cancer in India and
ancillary territory. SRL Ranbaxy, the largest laboratory chain in India
with more than 700 hundred collection centres and laboratories over the
entire region, will market and sell the test. SRL Ranbaxy will also be
responsible for the collection of blood samples.

DiaGenic will receive a Technical Services Fee of INR 2.500 per test
sold. After deduction of the agreed costs to DiaGenic's Indian agent,
DiaGenic will receive approximately NOK 300 per test (at present foreign
exchange rates). Further, the agreement implies an obligation for SRL
Ranbaxy to invest substantially in marketing of the test during the
first year. The agreement is mutually exclusive, and contains clauses
about minimum volumes as from year two. Numbers for minimum volumes and
the investments in marketing are not disclosed.

The parties have worked out a joint international press release about
the agreement; please find this press release enclosed.


Contact:

MD PhD Erik Christensen, CEO
Telephone: +47 95939918
e-mail: erik.christensen@diagenic.com