Nel ASA

Earnings Release • May 20, 2010

REPORT FOR FIRST QUARTER 2010

REPORT FOR FIRST QUARTER 2010

Growing market attention; Molecular diagnostics and biomarkers for

Pharma

The first quarter report for 2010 was approved by the Board of Directors

on 19 May 2010. Please find the report and the investor presentation

attached.

Highlights from the report:

.Distribution agreement with Ferrer on ADtect®

.First clinic to use BCtect® in UK presented

.Improved clinical documentation supporting higher accuracy of ADtect®

.Share issue of NOK 9.6 million

.More clinics in UK and Finland promote BCtect®

In the quarter DiaGenic and Ferrer inCode signed a distribution

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

Alzheimer's. The agreement gives Ferrer inCode, the 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.

Quest Diagnostics, the distributor in UK and Ireland, is actively

promoting BCtect® to private clinics, and in late March the London

Breast Clinic officially opened for testing. This agreement has not

materialised in any sales in the first quarter. After the quarter, two

hospitals in the larger Nuffield Health hospital group publicly

announced the future availability of BCtect®. Algol Pharma has signed

the first private clinic in Finland as customer for BCtect®.

DiaGenic has conducted an extensive study including 130 new patients and

controls, making the combined study to one of the largest within this

area. In a subset of patients recruited from Swedish hospitals a much

higher accuracy was observed (>85%). This reflects the true accuracy of

the test when compared to patients with a higher accuracy of the

clinical diagnosis by using CSF biomarkers.

Comprehensive income totalled NOK -11.8 million for the first quarter in

2010 compared with NOK -11.4 million in the corresponding period in

2009. Total operating costs for the first quarter 2010 amounted to NOK

11.9 million compared with NOK 11.6 million in the first quarter 2009.

The company's liquid assets totalled NOK 32.9 million at 31 March 2010.

In first quarter 2010 the Company issued 3.5 million shares at a

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

issue amounted to NOK 9.6 million. As resolved by the General Meeting in

December 2009 the Company issued 16 million warrants during the first

quarter. Each warrant holds the right to subscribe for one new share in

the Company at a subscription price of NOK 3.25 per share and the

warrants lapse on 30 September 2010.

Future prospects

.Launch of ADtect® in European countries covered by the Ferrer contract.

.Gain market acceptance of ADtect® and BCtect® in Europe from a growing

customer base followed by gradual increase of sales revenue

.Continue with US market entry plan

.Continue with the companion diagnostics strategy, including marketing

of our biomarkers to the pharmaceutical industry

Attachments: The First Quarter report and presentation

Contact:

MD PhD Erik Christensen, CEO

Telephone: +47 95939918

e-mail: erik.christensen@diagenic.com