Celerus Diagnostics Secures Round B Financing; New Technology in Final Stages of Development.

SANTA BARBARA, Calif. -- Celerus Diagnostics, the rapid cancer diagnostics company, today announced the completion of $9 million in financing by private investors. "We are delighted with the completion of our Series B financing," said Page Erickson, Chief Executive Officer and Founder of Celerus Diagnostics. "With this additional investment, our Rapid Diagnostic System will be completed and presented to the market by spring of 2007."

Founded in 2004, Celerus Diagnostics is designing an instrument that will provide the capability to decentralize testing and move results closer to the patient for quicker decision making. By addressing the unmet needs of the anatomic pathology laboratory, the Celerus diagnostic testing solution will provide "real-time" solutions for cancer patient management.

The core technology is a rapid tissue staining system designed for use in histology and cytology testing, including ImmunoHistoChemistry (IHC). The Celerus system is currently six times faster than the best available system on the market today, reducing test turn-around-time from 90 minutes to 15 minutes or less. This supports the College of American Pathologists' (CAP) guideline of 20 minute turn-around-time for intraoperative frozen tissue sections.

"The development of this product is extremely exciting," said Michael Sarrasin, Chief Operations Officer of Celerus Diagnostics. "It's clear the technology will impact the pathology lab greatly with its speed and ease-of-use, and most importantly, improve cancer patient care. Rapid biopsy diagnostics is truly the next revolution in pathology."

About Celerus:

Founded in 2004 in Santa Barbara, California, Celerus Diagnostics is committed to enhancing the diagnostic capabilities of the pathology laboratory. Celerus technology provides the capability to decentralize testing, and move results closer to the patient for real-time decision making. For more information, please visit our website: www.celerusdiagnostics.com or contact us at 805-685-0797.

The private placement fund-raising was led by the investment banking firm Merriman, Curhan and Ford (www.merrimanco.com).

This release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, Celerus Diagnostics' ability to successfully complete its development program, competitive pressures and other factors such as the introduction or regulatory approval of new products by our competitors and pricing of competing products and the resulting effects on sales and pricing of our products, disruptions or other problems with our sources of supply, significant product liability or other claims, difficulties with new product development and market acceptance, changes in the mix of our products sold, patent conflicts, product recalls, United States Food and Drug Administration (FDA) delay in or approval or rejection of new or existing products, changes in Medicare, Medicaid or third-party reimbursement policies, changes in government regulation, use of hazardous or environmentally sensitive materials, our inability to implement new information technology systems, our inability to integrate new acquisitions, and other events. This press release reflects information as of the date of this press release, and the company takes no responsibility in updating the information contained herein now or in the future.