GeneNews Announces First Quarter Results(------ CONSOLIDATED S...)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Expressed in Canadian dollars)

Three month period ended March 31

2008 2007

$ $

-------------------------------------------------------------------------

OPERATING ACTIVITIES

Net and comprehensive loss for the period (2,586,310) (1,671,251)

Add items not involving cash

Stock-based compensation 142,274 146,439

Amortization of property, plant and equipment 145,182 84,945

Amortization of intellectual property 110,537 110,537

-------------------------------------------------------------------------

(2,188,316) (1,329,330)

Changes in non-cash operating working capital

Accounts receivable 464,274 (65,871)

Investment tax credits recoverable 464,581 -

Prepaid expenses and deposits (45,869) 74,984

Accounts payable and accrued liabilities (237,571) (2,254)

Deferred revenue (294,286) -

-------------------------------------------------------------------------

Cash used in operating activities (1,837,370) (1,322,471)

-------------------------------------------------------------------------

FINANCING ACTIVITIES

Proceeds from exercise of employee stock options 30,750 25,459

Repayments of long-term debt (142,900) (37,143)

-------------------------------------------------------------------------

Cash provided by (used in) financing activi
'/>"/>