Med BioGene Closes Final Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA, Oct 08 (MARKET WIRE) --
Med BioGene Inc. (TSX VENTURE: MBI) today closed the third and final
tranche of its previously announced non-brokered private placement
through the issuance to SEP Capital Corporation ("SEP"), a capital pool
company listed on the TSX Venture Exchange (TSX VENTURE: SEP.P), of
4,500,000 units for gross proceeds of $360,000. MBI also issued to SEP
125,000 units in satisfaction of $10,000 of expenses related to the
private placement.

Including the first two tranches which closed on June 5 and 25, 2009, MBI
received aggregate gross proceeds under the private placement of
$1,960,000.

Each unit was issued at a price of $0.08 and consists of one common share
and one-half of one common share purchase warrant. Each whole common
share purchase warrant entitles the holder to purchase one common share
at a price of $0.10 for a period of 24 months, subject to the
acceleration by MBI of the expiration of the warrants if the closing
price of the common shares on the TSX Venture Exchange is greater than
$0.30 for twenty or more consecutive trading days.

MBI also paid to a third party a finder's fee of $12,500 and issued
compensation options to acquire 156,250 MBI common shares (i.e. equal to
$12,500 of common shares at $0.08 per share) pursuant to the private
placement.

The private placement is subject to customary conditions, including final
acceptance by the TSX Venture Exchange. MBI will use the proceeds of the
private placement for the development and commercialization of
LungExpress Dx(TM) and for general corporate purposes.

The securities issued pursuant to the private placement are subject to a
four-month hold period from the date of closing.

About Med BioGene

MBI is a life science company focused on the development and
commercialization of genomic-based personalized clinical laboratory
diagnostic tests.

MBI's lead product, LungExpress Dx(TM), is expected to be the first
commercially available gene expression-based test for early-stage
non-small-cell lung cancer that analyzes the molecular profile of a
patient's tumour to provide information to assist in tailoring treatment
for that specific patient. LungExpress Dx(TM) is the first and only gene
expression-based test for non-small-cell lung cancer shown to assist in
determining a patient's prognosis for survival and benefit from
chemotherapy.

MBI is committed to advancing personalized medicine by commercializing
tests that provide clinically relevant information to both save lives and
reduce health care costs.

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 is not limited to, that 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. This forward-looking information is only
a prediction 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 is 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. MBI's forward-looking
information does not reflect the potential impact of any future
partnerships, collaborations, acquisitions, mergers, dispositions, joint
ventures or investments that 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.

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

Contacts:
Med BioGene Inc.
Erinn B. Broshko
Chief Executive Officer
(604) 306-4969
ebroshko@medbiogene.com
www.medbiogene.com

Peterson Capital
Investor Relations
(604) 684-2883
rick@rickpeterson.ca
www.petersoncapital.ca

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