Mr. Erinn Broshko reports

MED BIOGENE REPORTS FINANCIAL RESULTS FOR Q2 2014

Med BioGene Inc. has released its financial results for the six months ended June 30, 2014 (all amounts are in U.S. dollars).

Second quarter 2014 financial results

Including certain expenses accrued but not incurred, as further described herein, during the six months ended June 30, 2014, Med BioGene recorded a loss of $129,881 (2013: $217,585), and during the three months ended June 30, 2014, Med BioGene recorded a loss of $57,060 (2013: $139,171), which consists of general and administrative expenses.

General and administrative expenses

General and administrative expenses consist of personnel costs, consulting fees, public company costs, director fees, communications, facilities and office operations expenses, and professional fees.

Actual general and administrative expenses, excluding accruals for management and director compensation that has been voluntarily deferred, were $82,328 for the six months ended June 30, 2014, compared with $217,585 for the six months ended June 30, 2013. The increase from the previous period is primarily attributable to an increase in legal fees (included in professional fees) of $63,675 relating to the previously announced petition filed in the B.C. Supreme Court on June 4, 2013, by certain dissident shareholders of Med BioGene against the company. On Aug. 30, 2013, the petition was discontinued by the petitioners. General and administrative expenses, including accruals for management and director compensation that has been voluntarily deferred, were $129,881 for the six months ended June 30, 2014.

Actual general and administrative expenses, excluding accruals for management and director compensation that has been voluntarily deferred, were $9,507 for the three months ended June 30, 2014, compared with $139,171 for the three months ended June 30, 2013. The increase from the previous period is primarily attributable to an increase in legal fees (included in professional fees) of $63,675 relating to the petition. General and administrative expenses, including accruals for management and director compensation that has been voluntarily deferred, were $57,060 for the three months ended June 30, 2014.

Liquidity and capital resources

At June 30, 2014, Med BioGene had cash and equivalents totalling $83,102 and a working capital deficiency of $18,316, compared with cash and equivalents of $181,507 and working capital of $112,624 at Dec. 31, 2013.

Cash used in operating activities was $97,967 for the period ended June 30, 2014, compared with cash used in operating activities of $182,779 for the period ended June 30, 2013.

In August, 2014, the company announced that it has received signed subscription agreements and funds for a non-brokered private placement of $200,000 of units. Each unit will be issued at a price of five cents and will consist of one common share and one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to purchase one common share at a price of 10 cents for a period of 24 months. The securities issued pursuant to the private placement will be subject to a four-month hold period from the date of closing. As a finder's fee, the company may issue compensation options to acquire the company's common shares equal to 10 per cent of the units sold pursuant to the private placement. The closing of the private placement is conditional upon, among other things: (a) receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange, and (b) at least three of the four persons, including the executive chairman of the company, nominated by management for re-election to the board of directors of the company at the coming annual and special meeting of shareholders to be held on Sept. 5, 2014, being elected as directors of the company at the meeting (this condition being required by the key subscribers to the proposed financing). It is important to note that there can be no assurances that the financing will close. The subscription funds are being held by the company in trust and, if the conditions to closing of the private placement, including re-election of a majority of the board of directors, are not met, the subscription proceeds will be returned to the subscribers pursuant to the terms of the subscription agreements.

Since March, 2014, as a result of Med BioGene's cash position, the management and directors of Med BioGene have voluntarily elected to defer their cash compensation (not including reimbursement of expenses in the ordinary course) to provide an extended runway for the company pending the anticipated payment by Precision of the first milestone payment under the commercialization agreement. The cash compensation owing but not paid to management and directors is being accrued and is due and payable upon demand. The debt amount owing to management and directors as of June 30, 2014, was $50,500 and continues to accrue.

Management and directors of Med BioGene have advised the company that in the event that the replacement of the Med BioGene board by the dissident shareholders appears likely, they will demand payment of the debt owing to them. Under such circumstances, Med BioGene would make such payment, and, as of the date of the meeting, Med BioGene would have minimal remaining available cash.

About GeneFx Lung

GeneFx Lung is a proprietary gene expression-based test to improve upon staging for identifying those patients with early-stage non-small-cell-lung cancer, who, following surgical removal of their tumour, are at higher and lower risks of mortality. In an initial study of patient specimens from the National Cancer Institute of Canada clinical trials group JBR.10 trial, published in the Journal of Clinical Oncology, patients classified by GeneFx Lung as high risk benefited from adjuvant chemotherapy, and those classified as low risk did not benefit and may have experienced a detrimental effect from adjuvant chemotherapy. In the same study, GeneFx Lung was validated in predicting patient mortality in four independent studies involving data from tumour specimens totalling 375 untreated early-stage NSCLC patients. As published in the Journal of Thoracic Oncology, GeneFx Lung was also independently validated in a prospective and blinded manner in predicting patient mortality in a study of 181 specimens from untreated NSCLC patients. GeneFx Lung is expected to provide better-informed and personalized treatment decisions to assist in the selection of patients for adjuvant chemotherapy.

On April 15, 2011, Precision and Med BioGene closed their commercialization, licence and research reimbursement agreement. The agreement provides to Precision exclusive global rights to develop and commercialize GeneFx Lung.

About Precision Therapeutics

Precision Therapeutics, a leading life science company based in Pittsburgh, Pa., is dedicated to improving the outcomes of cancer patients by providing personalized medicine solutions that aim to increase quality of life and cancer survival rates. Precision offers a portfolio of products developed to help guide physicians and patients with difficult clinical decisions throughout the continuum of cancer care.

Precision currently markets a number of tests through its CLIA-certified laboratory, including ChemoFx, BioSpeciFx and GeneFx Colon.

We seek Safe Harbor.