Mr. Thomas Braun reports

VERISANTE PROVIDES OPERATIONAL UPDATE

Verisante Technology Inc. has provided a year-end wrap-up and operational update. A summary of significant corporate highlights and recognition for 2012 include:

• Canadian Cancer Society named Verisante Core a top-10 cancer breakthrough;
• Verisante named the top technology and life sciences company by the TSX Venture Exchange on the TSX-V top-50 2012 ranking;
• Company signed an exclusive Canadian distribution agreement with Clarion Medical Technologies, the top distributor of dermatology devices in Canada with a large installed base and headquartered outside Toronto, Ont.;
• Cancer Research, a peer-reviewed journal of the American Association of Cancer Research, published Verisante Aura clinical study results;
• Study results conclusively demonstrated Aura's diagnostic accuracy (very high sensitivity rate of 99 per cent in accurately differentiating all major skin cancers from benign lesions) and potential for reducing unnecessary biopsies by 50 per cent to 100 per cent;
• Verisante was chosen pick of the street in the technology sector by leading fund managers, analysts and retail brokers;
• Expanded and renovated engineering facility in Richmond by adding approximately 1,500 square feet of production and assembly area for Aura. Verisante now occupies over 5,000 square feet of office space in Metro Vancouver;
• Completed beta units and placed them for field testing in clinics across Canada in Vancouver, Calgary, Edmonton, Oakville, Markham and Montreal;
• Extended a research agreement with British Columbia Cancer Agency to finance continued development of the Aura, and for further research and development of the Core;
• Took delivery of first two completed Aura preproduction units from StarFish Medical;
• Exhibited at and attended several dermatological conferences around the world, including the American Academy of Dermatology annual meeting in San Diego, the World Congress of MRTs in Toronto, and the European Academy of Dermatology and Venereology Congress in Prague, where a working model of Aura was displayed;
• Signed an exclusive distribution agreement with Bo-Pharma/Bo-Aesthetics (the largest independent distributor of leading brands of medical devices in Benelux) for the Benelux region, which together have 1,000 dermatologists;
• Took delivery of final preproduction unit from StarFish Medical;
• Completed technical and operational training with distribution partner;
• Verisante Aura named a finalist for the 2013 SPIE Prism Award;
• Intermediate clinical study results on lung cancer presented at the annual B.C. Cancer Agency research conference demonstrated that Verisante Core is best in class for lung-cancer detection;
• Verisante Aura early prototype currently being exhibited at the Canada Science and Technology Museum in Ottawa, and accepted into the museum's permanent collection.

"Two thousand twelve has been a year of foundation building and growth for Verisante," said Thomas Braun, president and chief executive officer. "We have successfully achieved our goals for this year and laid the groundwork for a full product launch of Verisante Aura in 2013 as we complete transfer to manufacturing processes this year. Our distribution partners are highly motivated and excited, and we continue to work closely with them on sales and marketing support."

The company is finalizing the design of marketing and sales brochures, in addition to packaging solutions for Aura's clean tips.

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