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PreMD Reports Second Quarter Results
Date:8/13/2008

into additional agreements with the company for further product development and other skin testing initiatives. As part of this achievement, we continued with our efforts to establish partnerships and alliances in order to extend our capabilities in the marketplace. Going forward, we believe that we have the technology, vision and business strategy to drive us back to growth and increased value."

PreMD also continues to appeal the recent decision made by the American Stock Exchange (the "AMEX") to delist its stock.

As previously noted in PreMD's 2007 annual report and, pursuant to the AMEX Rule 610 for the year ended December 31, 2007, the Company has received a going concern opinion from its independent auditors as a result of recurring operating losses and negative cash flows from operations.

Financial Review (All amounts are in Canadian dollars)

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The consolidated net loss for the three months ended June 30, 2008 (Q2 2008) was $1,318,000 or $(0.05) per share compared with a loss of $1,341,000 or $(0.05) per share for the quarter ended June 30, 2007 (Q2 2007).

Total product sales were $6,000 for Q2 2008 compared with $8,000 for Q2 2007. License revenue was $27,000 for Q2 2008, compared to nil for Q2 2007. Product sales reflect direct sales to customers. The license revenue in 2008 consisted of the upfront cash payment received in accordance with the 2007 licensing agreement with AstraZeneca, which was deferred and recognized into income on a straight-line basis over five years.

Research and development expenditures for the quarter decreased by $418,000 to $313,000 from $731,000 in Q2 2007. Significant causes of the variance include:

- a decrease of $94,000 in spending on clinical trials for skin

cholesterol;

- a decrease of $124,000 in spending on clinical trials for cancer;

- a decrease of $110,000 on product develop
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SOURCE PreMD Inc.
Copyright©2008 PR Newswire.
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