Mr. Thomas Braun reports

VERISANTE AURA CLINICAL STUDY RESULTS TO BE PUBLISHED IN 'CANCER RESEARCH'

Verisante Technology Inc. has learned that the results of the statistical analysis completed by researchers at Vancouver General Hospital (VGH), the B.C. Cancer Agency (BCCA) and the University of British Columbia (UBC) on data from a clinical study of the Verisante Aura have been accepted for publication by Cancer Research, a peer-reviewed journal of the American Association of Cancer Research (AACR).

The paper, titled "Real-time Raman spectroscopy for in vivo skin cancer diagnosis," was co-authored by Dr. Harvey Lui, Dr. Jianhao Zhao, Dr. David McLean and Dr. Haishan Zeng. The company previously announced the preliminary results of the analysis in January this year to coincide with the invited presentation by Dr. Zeng, distinguished scientist in the integrative oncology department (imaging unit) at the BCCA, and associate professor of dermatology and skin science at UBC, at SPIE, an international society advancing an interdisciplinary approach to the science and application of light.

"It is an honour to be accepted for publication in Cancer Research," said Dr. Lui, director of the Skin Care Centre at VGH, dermatologic oncologist at the BCCA, professor and head, department of dermatology and skin science, UBC, and one of the inventors of the Aura. "This study clearly demonstrates that the Verisante Aura has significant diagnostic accuracy in distinguishing malignant from benign skin lesions and offers the potential for reducing unnecessary biopsies by 50 per cent to 100 per cent. An additional advantage of using Aura as an objective tool to assist medical professionals in diagnosing skin cancer is that the device requires less-extensive user training and expertise than other traditional diagnostic approaches."

Skin cancer is currently diagnosed based on visual examination by a clinician, followed by a biopsy of suspicious lesions. Previous research has shown that the accuracy of clinicians in correctly diagnosing skin cancer is highly variable and dependent upon the level of formal training and experience of the clinician. Biopsy ratios (the number of non-melanoma lesions that undergo biopsy for each confirmed melanoma) can range from 58:1 to 21:1 for new versus experienced general practitioners and could be as high as 200:1 if all atypical pigmented lesions were to be biopsied to rule out melanoma.

The study shows that when using Verisante Aura to diagnose melanoma versus benign pigmented lesions at a sensitivity of 99 per cent and a specificity of 15 per cent, the biopsy ratio would be 5.6:1. At a sensitivity of 95 per cent and a specificity of 44 per cent, the biopsy ratio could decrease to 3.8:1. When using Aura to diagnose skin cancer and precancerous lesions versus benign lesions, at a sensitivity of 99 per cent and a specificity of 17 per cent, Aura has a biopsy ratio of 1.03:1 and, with a sensitivity of 90 per cent and a specificity of 68 per cent, the biopsy ratio can be as low as 2.3:1.

"The results of the clinical study data analysis, when compared to clinical diagnostic accuracy and biopsy ratios, demonstrate the effectiveness of the Aura to serve a large unmet need," said Thomas Braun, president and chief executive officer, Verisante Technology. "This clearly suggests that Verisante Aura offers a statistically significant improvement in the detection of skin cancer. We look forward to sharing the full study data with doctors in Canada, Europe and Australia, where Aura is approved for sale, as we move forward toward full production and sales in the second half of 2012."

Early detection is key to saving the lives of melanoma patients and saving health care costs. When melanoma is diagnosed and treated in the earliest stages, the survival rate is 99 per cent and it costs about $1,800 to treat it. In the late stages, the survival rate decreases to 15 per cent while the cost to treat it increases to $170,000.

Verisante Aura is a non-invasive optical system designed as a tool to aid medical professionals in the assessment of suspect skin lesions for diagnosis as either skin cancer or a benign disorder. It uses Raman spectroscopy to biochemically analyze the skin, providing immediate results.

Aura is indicated for use for the evaluation of skin lesions that may be clinically suspicious for melanoma, squamous cell carcinoma, basal cell carcinoma and/or actinic keratosis when a medical professional chooses to obtain additional information to rule out one of the above conditions before making a final decision to biopsy. The device will help to automate the current process of diagnosis, allowing rapid scanning of the 20 to 40 skin lesions on at-risk individuals, improving patient outcomes and comfort.

About Cancer Research

Cancer Research is the most frequently cited cancer journal in the world. The journal publishes original studies, reviews and opinion pieces, offering significance and broad impact to a diverse audience spanning basic, preclinical, clinical, prevention and epidemiological research. Cancer Research seeks manuscripts that offer pathobiological and translational impact to inform the personal, clinical and societal problems posed by cancer. The main scope of the journal is captured in its primary subsections, which focus on molecular and cellular pathobiology, tumour and stem cell biology, therapeutics and targets, microenvironment and immunology, prevention and epidemiology, and integrated systems and technology.

About the American Association of Cancer Research

The American Association of Cancer Research (AACR) was founded in 1907 by a group of 11 physicians and scientists interested in research "to further the investigation and spread the knowledge of cancer." Today, the AACR accelerates progress toward the prevention and cure of cancer by promoting research, education, communication and collaboration. It is the oldest and largest scientific organization in the world that focuses on every aspect of high-quality, innovative cancer research and its reputation for scientific breadth and excellence attract the premier researchers in the field.

We seek Safe Harbor.