Biomoda Inc. Teams with India's Leading Diagnostic Testing Provider; World Leader in Laboratory Services and Technology to Aid Biomoda.

ALBUQUERQUE, N.M. -- Biomoda Inc. and Metropolis Health Systems of Mumbai, India www.metropolisindia.com, have entered into an agreement for Metropolis to provide clinical samples for Biomoda's diagnostic test development program. This represents a significant ramping up of Biomoda's validation program.

Validation studies for Biomoda's patented and patent-pending products for the early detection and targeted treatment of specific cancers will be supported by the services of Metropolis Health Services, the largest independent pathology laboratory system in India, a nation of more than 900 million.

"This represents a critical step as we accelerate development," said Company President John Cousins, "initially as a major source of clinical sampling and as an ongoing international strategic alliance with our targeted customer base in a significant part of the world."

"It offers a great pride to Metropolis for having a mutual understanding with one of the leading biopharmaceutical companies like Biomoda Inc. for providing clinical sample services for their internal validation program," said Amit Bhatt, head - clinical trials. "The mission of Metropolis India will be to assist Biomoda Inc. in its innovative diagnostic research services."

Metropolis Health Services (India) Pvt. Ltd., is a corporate chain of diagnostic centers all over India. An ISO, CAP (College of American Pathologists) and NABL (National Accreditation Board for Laboratory Testing and Calibration Laboratories - ISO/IEC 17025:1999) accredited institution, Metropolis has many "firsts" to its credit. As a company with eight state-of-the-art laboratories, catering to the needs of more than 3,000 small laboratories, nursing homes, hospitals and more than 10,000 consultants, and processing more than 5 million samples per year, Metropolis has established itself as a renowned referral laboratory center in India.

In its 25 years of existence, Metropolis has grown into one of the leading players in Asia and has diversified its service lines to include clinical research and clinical trial management services, hospital laboratory management services, referral pathology & imaging services and preventive health services. Metropolis is the only Indian diagnostic chain to go international with a presence in the United Arab Emirates, and offices in the United Kingdom and United States. The company is currently exploring opportunities in Southeast Asia, Sri Lanka, the Middle East and Europe.

Biomoda Inc., a development stage in-vitro diagnostics organization, is focused on research, development and commercialization of cancer diagnostics. The company has several patents developed for noninvasive early detection and treatment of specific cancers and is in the process of registering additional patents in this area. The company's proprietary technologies provide minimally invasive and minimal-impact approaches as cancer diagnostic products. Biomoda's laboratory operations are situated at Kirtland Air Force Base (Albuquerque, N.M.).

This news release contains forward-looking statements that involve a high degree of risk and uncertainty. Such statements include, but are not limited to, statements containing the words "believes," "anticipates," "expects," "estimates," and words of similar import. The company's actual results could differ materially from any forward-looking statements, which reflect management's opinions only as of the date of this report, as a result of risks and uncertainties that exist in our operation, development efforts and business environment. The company undertakes no obligation to revise or publicly release the results of any revisions to these forward-looking statements. You should carefully review the risk factors in other documents that the company files from time to time with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q. For additional information, visit the Biomoda Web site at www.biomoda.com or call us at 505-821-0875.