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Med BioGene Inc. Completes Acquisition of Dragon-Tex (Group) Limited and Dragon-Tex (Group) Limited and $2 Million Financing

May 05, 2006

VANCOUVER, BRITISH COLUMBIA – Med BioGene Inc. (“MBI”) (TSX Venture: MBI) is pleased to announce that on Friday, April 28, 2006, MBI completed its acquisition of Dragon-Tex (Group) Limited (“DTX”) (TSX Venture: DTX). As part of the acquisition, the shareholders of DTX exchanged their common shares for common shares of MBI on the basis of two common shares of DTX for one common share of MBI.

Furthermore, concurrently with the closing of the acquisition, MBI completed a brokered private placement for gross proceeds of approximately $2 million. MBI is pleased to report that the private placement was oversubscribed by 38%. Blackmont Capital Inc. was the agent for the private placement.

As a result of the acquisition, MBI was listed on, and DT was de-listed from, the TSX Venture Exchange. The common shares of MBI will begin trading on the TSX Venture Exchange on Friday, May 5, 2006.

About Med BioGene

MBI is a biotechnology company with advanced research expertise in gene expression technology. MBI’s mission is to become a market leader in the supply of content for molecular-based diagnostic micro arrays. MBI intends to fulfill this mission by developing and marketing genetic content for molecular-based human diagnostic tests. Molecular diagnostics, based on genetic expression, is a developing technology field that has the potential to replace certain of today’s standard diagnostic tests. MBI intends to utilize its expertise in gene expression, bioinformatics and micro arrays to develop the diagnostic tests’ genetic content. From the tens of thousands of genes in the human genome, MBI is attempting to identify those genes, known as "bio markers," which mark the presence of various disease conditions.

MBI’s initial focus will be developing diagnostic tests for certain types of cancer, specifically lymphoma and leukemia. In the future, MBI intends to develop diagnostic tests to identify the earliest stages of heart disease or the presence of an infectious disease. These diagnostic test kits will be designed to provide additional information to physicians to allow them to create more suitable and more effective treatments for an improved patient prognosis

For further information, please contact:

Dr. Nathan Yoganathan
Chairman, President and Chief Scientific Officer
(604) 827-5100
nathan@medbiogene.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Certain statements in this press release contain forward-looking information under applicable Canadian securities legislation. Words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Forward looking information includes, but are not limited to, those with respect to future profits, future product revenues, future operations and plans, the use of proceeds from financings, the timing of clinical trials and the completion date for clinical trials and the prospects for negotiating partnerships or collaborations and their timing. These forward-looking statements or information are only predictions based upon MBI’s current expectations, and actual events or results may differ materially. MBI may not actually achieve the plans, intentions or expectations disclosed in its forward-looking information. Forward-looking information is subject to known and unknown risks and uncertainties and are based on uncertain assumptions that could cause MBI’s actual results and the timing of events to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on this forward-looking information, which speaks only as of the date of this press release. Our forward-looking information does not reflect the potential impact of any future partnerships, collaborations, acquisitions, mergers, dispositions, joint ventures or investments MBI may make. All forward-looking information is qualified in its entirety by this cautionary statement and MBI undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date of this press release, other than as required by applicable law.

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