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CardioGenics Announces Further Update Regarding Status of Merck Agreement
Date:3/10/2010

After analyzing the bench test results, the Company reported its findings to Merck Chimie and both parties agreed that Merck Chimie would undertake technical adjustments to the encapsulation process to meet the specifications. Consistent with the Company's recommendation, Merck Chimie will now encapsulate a second "test batch" of the CardioGenics Beads, incorporating such technical adjustments, and deliver the second "test batch" of the encapsulated CardioGenics Beads to the Company for what the parties anticipate will be the final bench test.

The Company expects to receive the second "test batch" of the encapsulated CardioGenics Beads from Merck Chimie during May, 2010. The Company will shortly thereafter perform its second bench test with those beads and anticipates meeting with Merck Chimie also during May, 2010 to discuss the bench test results and Merck Chimie's efforts for "scaling-up" production of the final encapsulated CardioGenics Beads for commercialization.

While being extremely close to satisfying the jointly developed specification for the commercial product, the Company nevertheless felt that some additional minor technical adjustments were necessary in the encapsulation process in order to optimize performance of the CardioGenics Beads during commercial use.

Dr. Yah
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SOURCE CardioGenics Holdings Inc.
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