GENETIC TECHNOLOGIES LIMITED — Interim / Quarterly Report 2008

Apr 27, 2008

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GENETIC TECHNOLOGIES LIMITED

A.B.N. 17 009 212 328

Quarterly Activities Report and

Appendix 4C of the ASX Listing Rules for the quarter ended

31 March 2008

GENETIC TECHNOLOGIES LIMITED

QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 31 MARCH 2008

OPERATIONS SUMMARY

During the March 2008 quarter, overall revenue of $4.8 million was 118% higher than for the March 2007 quarter. On a year to date basis, total revenue is up at $13.9 million which is 126% higher than for the prior comparable period. It should be noted, however, that the last quarter of the 2007 financial year included some significant licensing fees.

Revenues generated from the Company’s genetic testing operations increased significantly over the previous quarter, with total revenues of around $1 million having been recorded. This represents a 26% increase over the March 2007 quarter. For the nine-month period then ended, total testing revenues exceeded $2.7 million which was 20% ahead of the prior comparable period. Revenues generated from the Company’s licensing program exceeded $3.5 million, taking the total licensing fees received during the nine-month period ended 31 March 2008 to approximately $10.3 million.

Sales of genetic tests for the companion animal market continued to grow strongly and the Company believes that the market potential is still largely untapped. Accordingly, it has continued to invest in expanding its sales and marketing infrastructure within the Asia-Pacific region.

On 21 January 2008, the Company announced the execution of a three-year forensic DNA testing agreement with the New South Wales Police Force. Under the terms of the agreement, GTG will conduct forensic DNA analysis on “volume crime” samples such as break and enter, malicious damage, motor vehicle theft, and theft of items from motor vehicles. The awarding of the contract follows the completion of a successful three-month trial which the Company undertook for NSW Police in the middle of 2006. The first samples to be tested under this contract arrived in January 2008 and sample numbers to date have been in line with expectations.

Also in January, the Company appointed EPIC Athletic Performance Inc., a Colorado-based talent identification company, as a distributor of the ACTN3 SportsGene Test® product in the US. The ACTN3 SportsGene Test can provide insight into whether individuals are more geared towards endurance or sprint events from a genetic perspective.

A major new focus for the Company has been to invest in developing new genetic tests to expand its service menu. Considerable progress has already been made with several new products having been introduced during the March quarter.

During the quarter, the Company launched two new canine DNA trait tests and two new disease tests for dog breeders. The trait tests include the Long Hair Gene test – available for more than 13 breeds – and a DNA test for Natural Bob Tail. Breeders will now be able to easily and accurately breed for these desirable traits; something that was previously difficult to achieve. The two new disease tests launched include a DNA test for Krabbes Disease and a test for Grey Collie Syndrome. Dogs affected with these genetic diseases have a greatly reduced life expectancy.

The Company also developed a Species I.D Test that can potentially help authorities, agencies and food manufacturers identify the species of origin of biological samples. The test is able to determine whether a blood stain or biological sample has come from one of eight animal species including horse, sheep, cow, bird, goat, dog, cat or pig and has already proven its utility in suspected product contamination cases. The Species I.D Test gives investigators the power to not only find out the species of animal, but also determine the animal’s sex and unique DNA profile – or fingerprint.

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CORPORATE MATTERS

During the period from 1 January 2008 until the date of this Report, there were no changes to the Company’s issued capital, with 362,389,899 ordinary shares now on issue. During the same period, a total of 750,000 unlisted options over ordinary shares in the Company were cancelled. Accordingly, as at the date of this Report, there are 11,775,602 unlisted options outstanding, with exercise prices ranging from $0.17 to $0.53.

Signed on behalf of Genetic Technologies Limited

Dated this 28[th] day of April, 2008

MICHAEL B. OHANESSIAN Chief Executive Officer

2

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001, 24/10/2005.

Name of entity

GENETIC TECHNOLOGIES LIMITED

ABN 17 009 212 328

Quarter ended (“current quarter”)

31 MARCH 2008

Consolidated statement of cash flows

Consolidated statement of cash flows
Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for (a) staff costs (b) advertising and marketing (c) research and development (d) leased assets (e) other working capital 1.3 Dividends received 1.4 Interest and items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Grant and other income Net operating cash flows	Current quarter (March 2008) $A	Year to date (nine months) $A
	4,374,567 (1,415,175) (65,267) - - (1,630,446) - 220,802 (14,814) - -	12,173,546 (3,968,718) (138,710) (700,000) - (5,488,122) - 515,407 (48,079) - -
	**1,469,667 **	2,345,324

• See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 1

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Consolidated statement of cash flows (cont.)

Consolidated statement of cash flows	(cont.)
	Current quarter (March 2008) $A	Year to date (nine months) $A
1.8 Net operating cash flows (carried forward)	1,469,667	2,345,324
Cash flows related to investing activities 1.9 Payment for the acquisition of: a) businesses (item 5) b) equity investments c) intellectual property d) physical non-current assets e) other non-current assets 1.10 Proceeds from the disposal of: a) businesses (item 5) b) equity investments c) intellectual property d) physical non-current assets e) other non-current assets 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other (provide details if material) Net investing cash flows 1.14 Total operating and investing cash flows	- - - (92,970) - - - - 29,000 - - - -	- - - (107,544) - - - - 55,659 - - - -
	(63,970)	(51,885)
	1,405,697	2,293,439
Cash flows related to financing activities 1.15 Proceeds from the issue of shares 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Advances made to third parties 1.19 Dividends paid 1.20 Repayment of finance lease principal Net financing cash flows	- - - - - (238,614)	- - - - - (529,396)
	(238,614)	(529,396)
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments 1.23 Cash at end of quarter	1,167,083 14,290,083 (139,927)	1,764,043 13,783,750 (230,554)
	15,317,239	15,317,239

• See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 2

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.24 Aggregate amount of payments to the parties included in item 1.2 1.25 Aggregate amount of loans to the parties included in item 1.11	Current quarter $A
	359,574
	-

• 1.26 Explanation necessary for an understanding of the transactions

The amount included at Item 1.24 includes $244,576 paid in consulting fees, bonuses, commissions, Directors’ fees, superannuation and salaries to Directors and entities associated with Directors during the quarter. The amount also includes rental and outgoings of $114,998 for the Melbourne laboratory premises paid to an entity associated with a Director.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

None.

• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

The Company has an approximate 15.19% minority interest in the North Laverton Joint Venture in Western Australia. No cash was contributed by the Company during the quarter.

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

3.1 Loan facilities 3.2 Credit standby arrangements Hire purchase facility	Amount available $A	Amount used $A
	-	-
	2,500,000	384,224

• See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 3

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows: 4.1 Cash on hand and at bank 4.2 Term deposits 4.3 Bank overdraft 4.4 Commercial Bills of Exchange Total cash at end of quarter(item 1.23)	Current quarter (March 2008) $A	Previous quarter (December 2007) $A
	2,599,172	1,763,038
	12,718,067	12,527,045
	-	-
	-	-
	15,317,239	14,290,083

Acquisitions and disposals of business entities

• 5.1 Name of entity

• 5.2 Place of incorporation or registration

	Acquisitions	Disposals
	(Item 1.9(a))	(Item 1.10(a))
	Not applicable	Not applicable

• 5.3 Consideration for acquisition or disposal

• 5.4 Total net assets

• 5.5 Nature of business

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 28 April 2008 Chief Executive Officer

Print name: Michael B. Ohanessian

• See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 4

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.

3. 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss

4. 9.2 - itemised disclosure relating to acquisitions

5. 9.4 - itemised disclosure relating to disposals

6. 12.1(a) - policy for classification of cash items

7. 12.3 - disclosure of restrictions on use of cash

8. 13.1 - comparative information

9. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

10. See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 5