Investors - DiagnoCure, Cancer diagnostics, Cancer management, Innovative cancer tests

Investors

Message from the President and CEO

John C. Schafer Since its founding in 1994, DiagnoCure has always focused on cancer. From our first test for bladder cancer, through PCA3, our highly specific marker for prostate cancer, to our most recent initiatives, notably the PrevistageTM GCC Colorectal Cancer Staging Test to be launched in 2008, the Company’s goal has been to provide physicians and their patients with the most advanced diagnostic tests possible. The reason is simple: more accurate information leads to optimal medical treatment and better patient outcomes.

In the midst of the large traditional diagnostic industry, there is a growing body of evidence that innovations brought to light by the human genome project are revolutionizing modern medical practices.Compared to traditional pathology methods, which can detect one cancer cell in 200 normal cells, gene-based or molecular diagnostic tests can detect one cancer cell in up to 10 million normal cells. This represents a quantum improvement in providing the vital information physicians need to make optimal decisions about their patients’ treatments.

In early 2007, following a comprehensive review of our business strategy, we reaffirmed DiagnoCure’s singular focus on cancer. Cancer is a molecular disorder, and accordingly, we decided to move away from traditional cell-based tests and concentrated the Company’s research and development efforts on molecular diagnostics, a market with an estimated compound annual growth rate of more than 30%.

In order to achieve a leadership position in this promising new market of molecular diagnostics, we believe that DiagnoCure needs to master four key leadership traits, and we are taking the necessary steps on all of them:

Focusing on a specific clinical field: we are focused on high-value tests for cancer;
Implementing a business model with access to the market: we are opening a U.S. service laboratory in West Chester, PA, and are investing in sales and marketing;
Building a critical mass of products: we now have a promising pipeline with five tests added in 2007;
Securing favorable access to capital: we have a strong cash position.

All of this is possible thanks to the knowledge and experience of our researchers and developers as well as our proven capacity to identify and conclude promising alliances. We have a carefully developed plan and we are committed to making the most of it.

In 2008, we plan to:

Open DiagnoCure Oncology Laboratories, a U.S.-based service laboratory
Launch the PrevistageTM GCC Colorectal Cancer Staging Test
Announce clinical study results
Complete more commercialization alliances to add value
Expand commercialization of PCA3

The time has come to capitalize on the power of information brought to light by the human genome project. With the continued support of our partners and investors, we look forward to playing a leadership role in this vitally important pursuit.

John C. Schafer
President and CEO