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WaferGen Announces Third Quarter 2008 Financial Results
Date:11/10/2008

FREMONT, Calif., Nov. 10 /PRNewswire-FirstCall/ -- WaferGen Biosystems, Inc. (OTC Bulletin Board: WGBS), a leading developer of state-of-the-art gene expression, genotyping, cell biology and stem cell research systems, today highlighted the company's recent developments and announced financial results for the quarter and nine months ended September 30, 2008.

Recent Corporate Developments:

-- Announced that the National Institutes of Health (NIH) has awarded a

team of researchers at the University of Pittsburgh an approximately $3

million grant to conduct novel gene expression research in the area of

lung disease involving WaferGen's SmartChip(TM) Real-Time PCR System.

NIH-funded research will include the development and application of the

PulmoSmartChip, a custom designed SmartChip molecular phenotyping assay

for chronic obstructive pulmonary disease (COPD) and idiopathic

pulmonary fibrosis (IPF).

-- Expanded worldwide sales network for WaferGen's SmartSlide(TM) Micro-

Incubation System by signing regionally exclusive agreements with

leading distributors of innovative products and services to cell

biologists and stem cell researchers in Switzerland, Taiwan, the Nordic

region and Italy. Most recently, the company also signed a

distribution agreement to support sales in Japan.

"Consistent with our goals for this year, we are pleased that the NIH and the University of Pittsburgh are supporting key research initiatives using our SmartChip Real-Time PCR System. We believe the results from this research will facilitate the ongoing advancement of the SmartChip system as the platform of choice for biomarker discovery and validation," stated Alnoor Shivji, WaferGen's chairman and chief executive officer. "In addition, we continued to expand our reach and customer base for our SmartSlide Micro- Incubation System family of products through the signing of multiple new distributor agreements in key foreign markets. We are very encouraged by the growing interest in both of our product lines and look forward to reporting continued progress in the coming months."

Third Quarter and Nine Month 2008 Financial Results

At September 30, 2008, WaferGen had cash, cash equivalents and marketable securities of $3,209,394, compared to $5,189,858 at December 31, 2007. Additionally, WaferGen has met all requirements to qualify for the $1 million second tranche of the private placement to Malaysian Technology Development Corporation Sdn. Bhd. (MTDC) that it signed earlier this year. The company expects to receive that $1 million in funding in the near-term.

WaferGen's net revenues were $197,951 for the quarter ended September 30, 2008, compared to $6,700 for the quarter ended September 30, 2007. For the nine months ended September 30, 2008, net revenues were $556,442, compared to $67,460 for the nine months ended September 30, 2007. For the quarter and nine-month periods, the increase resulted primarily from the utilization of distributors and an expanded sales team to sell products in 2008 as compared to 2007.

Research and development expenses totaled $1,205,511 for the quarter ended September 30, 2008, compared to $728,288 for the quarter ended September 30, 2007. Research and development expenses totaled $3,503,573 for the nine months ended September 30, 2008, compared to $1,489,994 for the same period in 2007. For the quarter and nine-month periods, the increase resulted primarily from an increase in head count resulting in greater salaries and wages, an increase in research and development supplies used for product development and testing, our move to a new facility which allowed us to increase the amount of lab equipment on hand, and an increase in stock-based compensation associated with the issuance of stock options.

Sales and marketing expenses totaled $328,289 for the quarter ended September 30, 2008, compared to $277,248 for the quarter ended September 30, 2007. For the quarter, the increase resulted primarily from an increase in promotion and advertising, increase in commissions and an increased in head count, resulting in greater salaries and wages. Sales and marketing expenses totaled $1,008,969 for the nine months ended September 30, 2008 compared to $567,218 for the nine months ended September 30, 2007. For the nine-month period, the increase resulted primarily from an increase in stock-based compensation associated with the issuance of stock options, additional expenses incurred as a result of an increased head count, including the hiring of a Vice President of Sales, resulting in greater salaries and wages, increase in commission and some additional professional fees.

General and administrative expenses totaled $648,966 for the quarter ended September 30, 2008, compared to $773,656 for the quarter ended September 30, 2007. For the quarter, the decrease is related to the reduction of expenses related to legal and professional fees in the quarter. For the nine months ended September 30, 2008, general and administrative expenses totaled $1,971,773, compared to $1,582,812 for the nine-month period ended September 30, 2007. For the nine-month period, the increase resulted primarily from an increase in head count resulting in greater salaries and wages, an increase in stock-based compensation associated with the issuance of stock options, and legal and professional fees related to the filing of registration statements and other documents in connection with the May 2007 private placement and reverse merger as described elsewhere in this Form 10-Q.

WaferGen reported a net loss applicable to common stockholders of $2,084,900, or ($0.08) per share, for the quarter ended September 30, 2008, compared to a net loss applicable to common stockholders of $1,691,610, or ($0.07) per share, for the quarter ended September 30, 2007. For the nine months ended September 30, 2008, WaferGen reported a net loss applicable to common stockholders of $6,120,408, or ($0.25) per share, compared to a net loss applicable to common stockholders of $3,736,199, or ($0.30) per share in the same period of 2007.

Goals for 2008

During the balance of 2008, WaferGen will continue to work toward the creation of corporate and shareholder value through the achievement of key milestones, including:
-- Completion of SmartChip(TM) alpha testing at University of Pittsburg

Medical School

-- Publication/presentation of SmartChip(TM) alpha test results

-- Establishment of strategic SmartChip(TM) collaborations with premier

academic/genomics centers

-- Continued expansion of SmartSlide(TM) worldwide distribution channels

-- Establishment of manufacturing and production in Malaysia

About WaferGen

WaferGen Biosystems Inc. is a leader in the development, manufacture and sale of state-of-the-art systems for gene expression, genotyping, cell biology and stem cell research for the life science and pharmaceutical industries. The company is actively developing its SmartChip(TM) product for the gene expression and genotyping markets. SmartChip is being developed as the first whole genome, high throughput gene expression real-time polymerase chain reaction (PCR) platform. This innovative system, combined with next-generation chemistry and optimized assays being developed by WaferGen, promises to deliver significant speed and cost advantages to researchers in the gene expression and genotyping markets. Based on collaborations established with leading research institutions, WaferGen believes that the SmartChip Real-Time PCR System is positioned as the platform of choice for biomarker discovery and validation. WaferGen currently markets its SmartSlide(TM) family of products to companies and organizations involved in stem cell and cell biology research. SmartSlide, which was launched in 2006, represents the first fluidics integrated micro-incubators enabling cell biology and stem cell research. Representative SmartSlide customers include Harvard University, Mayo Clinic, California Institute of Technology (CalTech), Abbott Labs, and the National Institutes of Health (NIH).

Forward-Looking Statements [Note: Sec 27A of the Private Securities Litigation Reform Act is not applicable to issuers of penny stock]

This press release contains certain "forward-looking statements". Such statements include statements relating to the company's goals in 2008, the intended use of any proceeds received in the company's financings, the expected timing of any announcement of the results of the alpha testing with Dr. Shapiro and the University of Pittsburg Medical School, and other statements that are not historical facts, including statements which may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words.

Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the control of the company. Actual results may differ materially from the expectations contained in the forward-looking statements. Factors that may cause such differences include the risks that: (i) the company may be unsuccessful in commercially developing its products or in achieving market acceptance of new and relatively unproven technologies; (ii) the company will need to raise additional capital to meet its business requirements in the future and the company may not be able to do so on reasonable terms or at all; (iii) the company's proprietary intellectual property rights may not adequately protect its products and technologies; and (iv) the company expects intense competition in its target markets, including from companies that have much greater resources than the company, and there can be no assurance that the company will be able to compete effectively. More detailed information about the company and the risk factors that may affect the realization of forward-looking statements is set forth in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2007, and its subsequent Quarterly Reports on Form 10-Q filed with the SEC. Investors and security holders are urged to read this document free of charge on the SEC's web site at http://www.sec.gov. The company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Contact:

Vida Communication (on behalf of WaferGen)

Stephanie Diaz (investors) Tim Brons (media)

415-675-7400 415-675-7400

sdiaz@vidacommunication.com tbrons@vidacommunication.com

WAFERGEN BIO-SYSTEMS, INC. AND SUBSIDIARIES

(A Development Stage Company)

Condensed Consolidated Statements of Operations (Unaudited)

September 30, December 31,

2008 2007

Assets

Current assets:

Cash and cash equivalents $3,209,394 $5,189,858

Accounts receivables 227,616 139,827

Inventories 158,195 62,521

Prepaid expenses and

other current assets 141,965 87,487

Total current assets 3,737,170 5,479,693

Property and equipment, net 812,115 321,159

Other assets 16,422 54,016

Total assets $4,565,707 $5,854,868

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $686,029 $560,641

Accrued rent 32,701 19,340

Accrued payroll 176,158 414,519

Accrued vacation 199,538 156,234

Accrued other expenses 139,612 -

Current portion of capital lease

obligations 54,518 32,443

Total current liabilities 1,288,556 1,183,177

Capital lease obligations, net of

current portion 38,612 73,451

Minority interest 984,583 -

Commitment and contingencies - -

Stockholders' equity :

Preferred Stock, $0.001 par value;

10,000,000 shares authorized; no

shares issued and outstanding - -

Common Stock: $0.001 par value;

300,000,000 shares authorized;

24,830,932 and 23,217,846 shares

issued and outstanding at

September 30, 2008 and December

31, 2007 24,831 23,218

Additional paid-in capital 20,326,298 16,527,929

Accumulated deficit (18,073,315) (11,952,907)

Accumulated other comprehensive

income (23,858) -

Total stockholders' equity 2,253,956 4,598,240

Total liabilities and stockholders'

equity $4,565,707 $5,854,868

WAFERGEN BIO-SYSTEMS, INC. AND SUBSIDIARIES

(A Development Stage Company)

Condensed Consolidated Balance Sheets (Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2008 2007 2008 2007

Revenues $197,951 $6,700 $556,442 $67,460

Cost of sales 73,956 1,770 206,021 23,544

Gross margin 123,995 4,930 350,421 43,916

Operating expenses:

Sales and marketing 328,289 277,248 1,008,969 567,218

Research and development 1,205,511 728,288 3,503,573 1,489,994

General and

administrative 648,966 773,656 1,971,773 1,582,812

Total operating

expenses 2,182,766 1,779,192 6,484,315 3,640,024

Operating loss (2,058,771) (1,774,262) (6,133,894) (3,596,108)

Other income and (expenses):

Interest income 16,709 82,960 66,490 98,741

Interest expense (4,957) (308) (12,182) (186,834)

Miscellaneous expense (23,298) -- (26,239) --

Total other income and

(expenses) (11,546) 82,652 28,069 (88,093)

Net loss before provision

for income taxes (2,070,317) (1,691,610) (6,105,825) (3,684,201)

Provision for income taxes -- -- -- --

Net loss (2,070,317) (1,691,610) (6,105,825) (3,684,201)

Accretion on Redeemable

Preferred Stock (14,583) -- (14,583) --

Accretion on Series B

Preferred Stock -- -- -- (51,998)

Net loss applicable to

common stockholders $(2,084,900) $(1,691,610) $(6,120,408)$(3,736,199)

Net loss per share -

basic and diluted $(0.08) $(0.07) $(0.25) $(0.30)

Shares used to compute

net loss per share -

basic and diluted 24,830,932 23,217,846 24,007,933 12,390,059


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SOURCE WaferGen Biosystems, Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. WaferGen to Present at the Rodman & Renshaw 10th Annual Healthcare Conference
2. NIH Awards Approximately $3M Grant for Research Involving WaferGens SmartChip(TM) Real-Time PCR System at the University of Pittsburgh
3. WaferGen to Present at the Seventh Annual BIO Investor Forum
4. WaferGen Announces Second Quarter 2008 Financial Results
5. WaferGen to Present at the Ninth Annual Beyond Genome Conference
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8. WaferGen Signs Exclusive Distribution Agreement for SmartSlide(TM) Micro-Incubation System in Germany
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11. WaferGen Announces Management Team Promotions
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