Nel ASA

Earnings Release • Feb 16, 2010

REPORT FOR FOURTH QUARTER 2009

REPORT FOR FOURTH QUARTER 2009

Expanded market reach and first product sales in Europe

The fourth quarter report for 2009 was approved by the Board of

Directors on 15 February 2009. Please find the report and the investor

presentation attached.

Highlights from the report:

- First product sales in Europe

- Distributor contract for UK and Ireland signed with a world leading

provider of diagnostic testing and services

- Norway's most innovative company prize awarded

- Private placement of MNOK 34

- Distribution agreement with Ferrer (32 countries)

- Successful subsequent share offering of MNOK 9.6

In the quarter DiaGenic recorded its first revenue from sales in Europe

with sales of collection kits to distributors preparing for first sample

collections. A collection kit contains components used to collect

patient blood samples for analysis using a DiaGenic assay.

DiaGenic has signed an agreement with a world leading provider of

diagnostic testing and services to patients and doctors to market its

BCtect® for early detection of breast cancer and ADtect® for early

detection of Alzheimer's in the UK and Ireland.

DiaGenic and Ferrer inCode signed a distribution agreement after the end

of the quarter for the blood-based ADtect® test for early diagnosis of

Alzheimer's disease covering a total of 32 countries. The agreement

gives Ferrer inCode, a biotech subsidiary of Grupo Ferrer Internacional,

the exclusive right to sell and market ADtect® initially in Germany,

Belgium, the Netherlands, Luxemburg, France, Italy, Spain and Portugal

followed by Latin America

DiaGenic received the Norwegian Research Council's prestigious "Most

Innovative Company of the Year" award. The purpose of this award is to

encourage innovation in Norwegian business and industry by making

innovative companies more visible. The winner is chosen based on number

of votes casted by prominent business and industry leaders of Norway.

More than 1,000 business and industry leaders voted this year and

DiaGenic received a predominant share of the votes.

Net Income totalled NOK -11.2 million for the fourth quarter in 2009

compared with NOK -10.8 million in the corresponding period in 2008.

Total operating costs for the fourth quarter 2009 amounted to NOK 11.4

million compared with NOK 11.3 million in the fourth quarter 2008. The

company's liquid assets totalled NOK 35.4 million at 31 December 2009.

In fourth quarter 2009 the Company issued 12.5 million shares at a

subscription price of NOK 2.75 per share. The gross proceeds from the

issue amounted to NOK 34.4 million. After the end of fourth quarter 2009

the Company received 7.8 million subscriptions of shares in the

subsequent offering, out of a total of 3.5 million shares on offer at a

subscription price of NOK 2.75 per share. The gross proceeds from the

subsequent offering will be in the amount of NOK 9.6 million.

Attachments: The Fourth Quarter report and presentation

Contact:

MD PhD Erik Christensen, CEO

Telephone: +47 95939918

e-mail: erik.christensen@diagenic.com