Genovis Quarterly Report - Q2 January 1 - June 30, 2007

Genovis Quarterly Report - Q2 January 1 - June 30, 2007

•	After tax results for the second quarter amounted to KSEK -1,717 (KSEK -1,003)
and for the year KSEK -3,339 (KSEK - 2,079)
•	Reference project involving gene transfer, siRNA delivery and magnetic
labeling of cells concluded with positive results
•	A new business area and new products related to antibody fragmentation as a
result of the acquisition of intellectual property rights

Remarks from the CEO
Getting underway with sales and beginning to generate revenues is one of the
most important milestones in the development of Genovis. When the Genovis Web
Shop opens on September 27, we will be ready to begin selling some 20 products
based upon the NIMT® technology. 

During the first half of the year, Genovis has been investing in production
processes, infrastructure and IT-based support functions in order to be able to
handle global support, logistics and sales in as optimum a manner as possible.
The task with the highest priority we now face is to establish sales and
marketing channels in the US, Europe and Asia, either via partners or under our
own auspices.  A global web shop requires global marketing. 
Genovis ambition is to start  marketing activities targeted at customers within
niche markets for our products in both the US and Asia before the end of the
year. 

Sarah Fredriksson
CEO Genovis AB 

Operations
Genovis has developed a patented technology, called NIMT™
(NanoInducedMagneticTransfer) technology, which is intended to be used as a
research tool in preclinical research as well as in the development of
pharmaceuticals.  The products that are derived from the concept include a line
of different nanoparticles, NIMT™ FeOdots, and a laboratory instrument, NIMT™
NanoHeater, which is used to control the properties of the nanoparticles. All
products are intended for laboratory use and for multiple applications: gene
transfer, RNA interference, magnetic labeling and sorting of cells as well as
magnetic separation of biomolecules.

Since the fourth quarter of 2006, Genovis has carried out a number of reference
projects. Genovis NIMT™ technology has been tested in the research enterprises
of eight different groups in applications that include gene transfer, magnetic
labeling and siRNA delivery. The groups included two Swedish biotechnology
companies, Lund University, Karolinska Institutet, Uppsala University, NIH (the
National Institutes of Health, in the US) and SCRIPPS (the Scripps Research
Institute, also in the US). 

The objectives Genovis had in carrying out this reference project included
performing quality assurance on the technology by testing its technical
performance on difficult tasks and cells that are difficult to work with, based
on the customer's definition. The project has also contributed to giving Genovis
feedback regarding its production, logistics and packaging solutions. On the
overall, the project has equipped Genovis with additional expertise in issues
concerning customer support and customized solutions in different prioritized
customer segments. 

On May 3, 2007, Genovis entered into an agreement with Hansa Medical AB on the
acquisition of a patent and license for biotechnical industrial applications for
a group of bacterial surface proteins. Genovis will be marketing the rights
together with the company's NIMT™ FeOdots nanoparticles in completely new
laboratory products intended for preclinical research. The proteins that are
included in the agreement will first and foremost be used as components in
products intended for antibody-based research and production of antibody
fragment.
Genovis has combined its technology platform with two of the bacterial surface
proteins that the company acquired from Hansa Medical AB and created a unique
tool for fragmentation of antibodies. Antibody fragmentation is a technology for
which there is increasing demand and which is used in, among other things,
analyses of cell cultures , coloring of tissue samples and in order to avoid
activating the defenses of the immune system in the development of new
antibody-based drugs. The new product line will begin to be sold when the
company opens its web shop in September. 

Organization
During the second quarter the number of employees has increased by one full-time
position and one part-time position. At the end of the period Genovis had 10 (5)
employees. 

Income and quarterly profit or loss
Revenues for the period of KSEK 131 (KSEK 56) are comprised of instrument rental
KSEK 5 and KSEK 126 in the form of labor market contributions and grants. The
results for the period comprised KSEK - 3,339 KSEK (KSEK - 2,079).  

Investments
During the period, investments in non-tangible assets (continued development of
patents and prototypes as well as acquisition of intellectual property rights)
were made of KSEK 3,969 (KSEK 1,542). Investments in tangible assets involving,
among other things, laboratory and computing equipment were made totaling KSEK
642 (KSEK 205).
Financial position and liquidity
Cash flow from on-going operations before changes in funds tied up in operations
was KSEK -4,405. Cash flow from financial enterprises was KSEK -65. Liquid
assets as at June 31, 2007, comprised KSEK 7,060 (KSEK).  

Genovis class B shares
Genovis class B shares are listed on First North, which is a part of the OMX
Nordic Exchange. 



For additional information please contact:
Sarah Fredriksson,CEO
Genovis AB 
Tel: (+46) (0)46-101235
E-mail: Sarah.Fredriksson@genovis.com
www.genovis.com

Genovis is a biotechnology company with distinguished core competency in the
fields of nanotechnology and nanoparticles. The company's patented NIMT™
technology (NanoInducedMagneticTransfer) has been developed in order to enable
the life science industry to conduct effective preclinical research. Genovis
shares are listed on the First North stock exchange (OMX). Mangold
Fondkommission AB is a Certified Advisor and guarantor of liquidity to the
company.