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PreMD Reports Fiscal 2007 Results
Date:3/28/2008

tives, pending FDA clearance and the subsequent commercialization of our products. We appreciate the patience and support of our stakeholders, as we determine the most effective steps toward enhancing shareholder value while evaluating the opportunities before us."

Financial Review (All amounts are in Canadian dollars)

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The consolidated loss for the year ended December 31, 2007 was $6,316,000 or $(0.26) per share compared with a loss of $5,949,000 or $(0.27) per share for the year ended December 31, 2006, an increase of $367,000.

Total product sales of PREVU(x) Skin Cholesterol tests amounted to $41,000 in 2007 compared with $7,000 in 2006. License revenue was $53,000 in 2007 compared to $3,329,000 in 2006, a decrease of $3,276,000. License revenue consists primarily of the upfront cash payments received in accordance with the respective licensing agreements, which have been deferred and recognized into income on a straight-line basis over the terms of the agreements. For 2007, the license revenue represents the amortization of the $533,000 (US$500,000) received upon signing of the license agreement with AstraZeneca on July 13, 2007.

Research and development expenses for the year decreased by $1,996,000 to $2,778,000 from $4,774,000 in 2006. The variance for the year reflects:

- A decrease of $2,224,000 in spending on clinical trials for skin

cholesterol and cancer to $347,000 from $2,571,000 in 2006, following

the submission of the US FDA application;

- An decrease of $103,000 in product liability insurance due which is

related to the reduced number of clinical trials undertaken in 2007;

- An increase of $175,000 in performance-based compensation expense

resulting from achievement of milestones;

- An increase of $88,000 in product development and subcontract

research as related to the vali
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SOURCE PreMD Inc.
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