Nel ASA

Earnings Release • Feb 20, 2014

Report from fourth quarter 2013

Report from fourth quarter 2013

Organizational downsizing and cost reductions implemented and the board

has presented a proposal to secure financing of DiaGenic

The interim report for the fourth quarter 2013 was approved by the Board

of Directors on 19 February 2014. Please find the interim report and

presentation attached.

Highlights from the report:

·

On 10 October 2013 DiaGenic announced the results from a calibration

study for an optimized MCItect test based on a larger study population.

In a patient population of 157 patients diagnosed with amnestic mild

cognitive impairment, MCItect® demonstrated a total prediction accuracy

of 75% in detecting patients converting to Alzheimer's disease

dementia within two years

·

On 28 October DiaGenic announced that its management and board of

directors will seek to restructure the company, and/or divest all or

selected company assets. As a consequence, the Board decided to give

notice of termination to the staff; a process which was fully executed

by the end of October. Work to finalize ongoing projects and third party

collaborations continued during 2013,and was completed in January.

·

On 29 October DiaGenic reported intermediate results from an exploratory

study that examines the agreement between gene expression in blood and

brain amyloid PET imaging. In an initial patient population of 100

patients, an agreement between brain amyloid load as measured by brain

PET imaging and gene expression in peripheral blood was established.

·

On 22 November DiaGenic's Extraordinary General Meeting resolved to

elect Hanne Skaarberg Holen (chairman), Øystein Stray Spetalen and

Martin Nes as members of the board of directors in DiaGenic.

·

Q4 2013 pre-tax earnings were NOK -6.7 million compared with NOK -10.9

million in Q4 2012

Significant events after the end of the period:

·

DiaGenic has entered into an agreement with its largest creditor that

significantly reduced DiaGenic's financial liabilities going forward.

·

The Board of DiaGenic has resolved to propose that the Company carries

out a new share issue of NOK 50 million, by way of a rights issue with

preferential rights for shareholders of Diagenic. The Company has

secured a full underwriting of the Rights Issue through an underwriting

syndicate. The proposed Rights Issue remains subject to shareholder

approval at an extraordinary general meeting in DiaGenic

·

DiaGenic reported final results from an exploratory study that examined

the agreement between gene expression in blood and brain amyloid PET

imaging. In a patient population of 144 patients, a gene expression

biomarker was identified that demonstrated an agreement of 69% with

brain amyloid PET imaging.

·

Ruben Ekbråten has been appointed as the new Acting Chief Executive

Officer (CEO) of DiaGenic ASA effective from 1st February 2014.

·

Effective from 1st February 2014 DiaGenic has changed address to:

Sjølyst plass 2, 0278 Oslo, Norway

·

The board of directors of DiaGenic ASA has called for an extraordinary

general meeting on 25 February 2014

Outlook

DiaGenic´s goals for the next 6 months include:

· Secure financing of the Company through the proposed rights issue

·

Continue the restructuring process of the company to enable the Company

to pursue growth and development in its existing business, through new

opportunities within biotech/pharmaceuticals or other areas

Attachments: The interim report and presentation

Contact:

Ruben Ekbråten, Acting CEO

Telephone: 47 2324 8950

e-mail: ruben.ekbraten@diagenic.com

About DiaGenic ASA

DiaGenic is an innovative Norwegian diagnostic company that seeks to

create value for patients, partners and investors by developing

innovative and patient friendly in vitro diagnostic (IVD) products for

early detection of diseases. The company's proprietary concept implies

that a disease evokes systemic responses in the blood unique for the

disease, and which can be measured by using a blood sample. DiaGenic is

a world leader in identifying gene expression signatures in blood and is

focused on the development of IVD biomarker products in the field of

Alzheimer's disease. The company protects its technology through an

extensive patent portfolio. DiaGenic is listed on the Oslo Stock

Exchange. For more information please visit: www.diagenic.com