mtm laboratories Opens Subsidiaries in Italy, France and Spain to Support the Commercialization of Its Diagnostic Products.

HEIDELBERG, Germany -- mtm laboratories today announced the opening of new subsidiaries by the Company in Italy (Milan), France (Paris) and Spain (Madrid) in order to commercialize its CE-labeled diagnostic products in Europe. When combined with Germany, these additional European markets represent approximately 65% of the total European cervical cancer screening market.

Peter Pack, CEO of mtm laboratories commented, "Our commitment to expanding into France, Italy and Spain, along with our existing presence in Germany and the USA, signals our intention to make mtm's cervical cancer diagnostic products globally available."

Through these new subsidiaries, mtm will commercialize its proprietary p16INK4abased products in major European markets starting in January 2007. As announced in May 2006, mtm regained the rights to commercialize its CINtec[R] products after it had terminated its exclusive license to Dako A/S (Denmark), effective January 1 2007. mtm's CINtec([R]) in vitro diagnostic products focus on the detection of p16INK4a over-expression in biopsies (CINtec([R]) Histology) and cervical cytology specimens (CINtec([R]) Cytology) while retaining cellular morphology. In parallel, the company is developing the biochemical product Cervatec[TM] ELISA, an assay not reliant on the integrity and assessment of cells.

mtm laboratories AG is an ISO 9001 and ISO 13485 certified developer and manufacturer of In-Vitro Diagnostics (IVD) for the screening and diagnosis of cervical cancer. The Company operates on a global basis with headquarters in Heidelberg, Germany and subsidiaries in the United States, France, Italy and Spain. mtm laboratories is in the process of developing and clinically validating the cell-based CINtec([R]) Assays as well as the biochemical Cervatec[R] ELISA Assay.

Notes for editors:

Cervical cancer

Worldwide, cervical cancer is the second most common cancer in women, a position it shares with colorectal cancer. Globally, about 500,000 new cases of cervical cancer are diagnosed annually, and are associated with over 200,000 deaths. Prevention of cervical cancer is fundamentally tied to the early detection of the disease at the stage of pre-cursor lesions. If diagnosed early, cervical cancer can be virtually 100% prevented. The screening for, and early detection of cervical cancer is considered the most efficient and effective strategy to for cancer prevention.

Standard diagnostics and screening for cervical cancer

The mainstay of cervical cancer screening is the Pap Test. The Conventional Pap Smear (CPS) has been in widespread use since the 1950's and is credited with a significant reduction in cervical cancer cases and mortalities. However, this "old" technology has well defined limitations in sensitivity, specificity and test quality. These limitations have in part been addressed by Liquid Based Cytology (LBC) products which were introduced in the mid-1990s. Despite recent advances in cytology technologies, the current screening system remains heavily reliant on human interpretation of cellular changes resulting in the continued clinical need for improvement in sensitivity, specificity and diagnostic efficiency.

More recently, testing for Human Papilloma Virus (HPV) has been adopted for the management of unclear and mildly abnormal Pap Tests (most of which are false positive results) for women over 35. Its use for this application is limited to less than 3% of all Pap Tests. In addition, clinical studies are in process to gain utilization for HPV testing in a primary screening mode. The sensitivity for disease of HPV testing is superior to that of a Pap Test. However, the high rate of general HPV infection for this virus in women (up to 25%) delivers a very low specificity (correlation of positive test to actual disease), which severely limits the potential clinical utility of this for mainstream screening.

The CINtec[R] family of screening and diagnostic products

mtm's products for cervical cancer are based on the detection of a highly specific biomarker, p16INK4a, which indicates the existence of pre-cancerous and cancerous cervical cells. The identification and clinical validation of this biomarker, has enabled mtm to develop assays, for use in population-wide screenings, to detect and to diagnose cancer at an early stage when it is most treatable.