Molecular Diagnostics, Inc. and DiagnoCure Inc. Enter Into Strategic Agreement.

Business Editors/Health & Medical Writers

InPath(TM) Slide Based Test to Automate Analysis

of ImmunoCyt(TM)/uCyt(TM) a non-invasive diagnostic

tool in the detection of Bladder Cancer 

CHICAGO & QUEBEC CITY, Canada--(BUSINESS WIRE)--Dec. 12, 2002

Molecular Diagnostics, Inc. (OTCBB:MCDG) and DiagnoCure Inc. (TSX:CUR) jointly announced today that they have entered into a Strategic Agreement to integrate DiagnoCure's ImmunoCyt(TM) / uCyt(TM) molecular assay for the detection and monitoring of bladder cancer with MDI's InPath(TM) Slide Based Test automated microscopy platform.

The Agreement is based around a three year relationship under which MDI will optimize its SBT platform technology specifically for the detection of cells of interest based on staining by the ImmunoCyt(TM) / uCyt(TM) assay. The companies' plan for the program calls for initial product availability in the first quarter of 2003. The Agreement also calls for the companies to co-market the platform over that period to ImmunoCyt(TM) / uCyt(TM) customers worldwide. Financial terms of the Agreement were not identified.

"After an extensive evaluation of different automated microscopy tools and platforms, the Slide Based Test clearly provides the most integrated, cost-effective, and user-friendly platform available in the market today," said Pierre Desy, DiagnoCure's President and Chief Executive Officer. "We have been working with MDI's team for some time now and it is clear that they have a knowledge base that sets them apart in the field. We look forward to rapidly bringing to market an automated platform that will offer improved economies and efficiencies to our ImmunoCyt(TM) / uCyt(TM) customers, allowing them to build a new edge with their clinicians".

The InPath(TM) Slide Based Test is a fully integrated automated microscopy system, which includes a robotic microscope and advanced algorithmic software tools that are able to identify and quantify certain cellular attributes from microscopy samples. The SBT platform is currently in clinical trials for use with MDI's proprietary Cocktail-CVX(TM) biomolecular assay for the detection of cervical cancer and pre-cancer.

According to Stephen G. Wasko, Molecular Diagnostic's President and COO, "DiagnoCure is on the leading edge of the evolving Urologic disease management field. Their recognition that automation of testing is crucial to rapid and broad market expansion and adoption of the new biomolecular technologies is in perfect alignment with MDI's assessment of the cancer detection and management market generally. We believe this partnership will demonstrate great rewards to both organizations and expect to be introducing this new technology to our common laboratory partners in the coming weeks."

DiagnoCure's biomolecular assay is an immunocytofluorescent assay for the detection of bladder cancer cells in urine and is based on a cocktail of three monoclonal antibodies. With outstanding sensitivity results in both low and high-grade tumors, ImmunoCyt(TM) / uCyt(TM) is the perfect complement to cytology and cystoscopies in any bladder cancer monitoring program. The combination of ImmunoCyt(TM) / uCyt(TM) and cytology increases the confidence of clinicians making sure that they have not missed any cancer. uCyt+(TM) is currently distributed in Canada and in many European countries. In the United States, the test is marketed as ImmunoCyt(TM) under authorization from the FDA for monitoring recurrent bladder cancer.

About Molecular Diagnostics, Inc.

Molecular Diagnostics develops cost-effective cancer screening systems, which can be utilized in a laboratory or at the point-of-care, to assist in the early detection of cervical, gastrointestinal, and other cancers. The InPath(TM) System is being developed to provide medical practitioners with a highly accurate, low-cost, cervical cancer screening system that can be integrated into existing medical models or at the point-of-care. Other products include SAMBA(TM) Telemedicine software used for medical image processing, database and multimedia case management, telepathology and teleradiology. Molecular Diagnostics also makes certain aspects of its technology available to third parties for development of their own screening systems.

About DiagnoCure Inc.

DiagnoCure Inc. specializes in the development, production and commercialization of molecular tests for the detection of cancer. DiagnoCure's mission is to become the leading developer of highly accurate tests to enable the early detection of cancer.

DiagnoCure's first marketed product, ImmunoCyt(TM) / uCyt+(TM), is an immuno-cytofluorescence test for the detection of bladder cancer cells in urine and is based on monoclonal antibodies. This product is currently distributed in the United States, Canada and in many European countries. Combining its expertise in nucleic acid probe-based technology with its exclusive rights to the PCA3DD3 gene technology, DiagnoCure is developing the uPM3(TM) test for detecting PCA3DD3 RNA expression in prostate cancer cells that are present in urine. The uPM3(TM) test will be positioned as an ideal complement to the clinical management of the diagnosis of prostate cancer in order to decrease the number of unnecessary biopsies. As a result of a strategic partnership with Compugen Ltd., the company is also co-developing a molecular diagnostic test for lung cancer.

Certain statements in this release are forward-looking. These statements are based on DiagnoCure's and Molecular Diagnostics' current expectations and involve many risks and uncertainties, such as the possibility that clinical trials will not substantiate the Molecular Diagnostics' expectations with respect to the InPath(TM) System, and other factors set forth in reports and documents filed by Molecular Diagnostics with the Securities and Exchange Commission. Molecular Diagnostics and DiagnoCure undertake no obligation to publicly update or revise any forward-looking statements contained herein.