Gentian Diagnostics ASA

Earnings Release • Mar 22, 2017

UPDATE ON SITUATION IN CHINA

UPDATE ON SITUATION IN CHINA

Moss, 22 March 2017

Reference is made to the stock exchange announcement on 31 January

2017 and 22 March 2017. Gentian Diagnostics AS (OSE: GENT-ME) has

just been informed by its Chinese distributor that the ongoing issue

can most likely not be resolved in a way that will result in more

orders to Gentian. Although this is unfortunate, the relative

importance of this customer has been declining over time. For 2017,

the budgeted gross profit from this customer is MNOK 3. Based on the

new information, Gentian expects total revenues for 2017 to be at

the same level as in 2016.

Earlier today, Gentian announced that it has achieved proof of

concept on its most important pipeline product, G-1001, and on its

novel Nanosense II technology. With Nanosense II, Gentian has

established a new state-of-the-art level of sensitivity on the big,

automated instruments present in all clinical laboratories, and

built a basis for several new and unique product launches in the

future. Gentian is well positioned for future growth, and targets to

launch one new product annually starting from the second half of

Commenting on the news, CEO Bård Sundrehagen:

"We are clearly very disappointed with the information we have

received from our Chinese distributor. However, the main activity in

Gentian is centered around developing new, proprietary diagnostics

tests with considerably larger commercial potential than our

existing products. Earlier today we announced our biggest R&D-

achievement in the history of the company with the proof of concept

on G-1001 and the Nanosense II technology. This makes us confident

in our long-term growth potential."

For further information, please contact:

Bård Sundrehagen

CEO, Gentian Diagnostics AS

E-mail: Bard.sundrehagen@gentian.no

Cell Phone: +47 924 14 117

ABOUT GENTIAN DIAGNOSTICS AS

Gentian Diagnostics AS is a medical diagnostics company listed on

Merkur Market, Oslo Stock Exchange with the ticker "GENT-ME".

Gentian is headquartered in Moss, Norway, with a representative

office in China and distribution subsidiaries in Sweden and USA.

Gentian designs, develops and markets in vitro diagnostic reagents

(IVD) based on its proprietary Nanosense technology. The goal is to

offer efficient and accurate reagents for major clinical chemistry

platforms with a focus within the areas of kidney disease, cardiac

disease, inflammation and veterinary medicine. The Nanosense

technology will enable users to move assays from low volume

immunology platforms to fully automated, high throughput instruments

with shorter turnaround times, better workflow and improved cost

efficiency.