Pacific Edge has successfully developed a research engine capable of identifying gene profiles which define specific diseases and key characteristics of those diseases. We are now well advanced in using these gene profiles as a basis for developing commercial products. Our current set of diagnostic and disease progression markers for licensing are in bladder cancer diagnostics and monitoring and colorectal cancer prognosis. These assays will enter clinical trials in 2007. Gastric cancer biomarkers are in late stage of development. In summary they are:

Product Target Arenas	Development Period	Products in Development (in order of state of development)
Bladder cancer	2004-2007	Bladder cancer early diagnosis
Colorectal cancer	2004-2007	Colorectal cancer prognostic signatures for predicting the risk of a patient’s colon cancer metastasising to other parts of the body
Gastric cancer	2002-2008	Gastric cancer diagnostic assay. (First protein/ antibody assay for the Company)

Pacific Edge Biotechnology’s product objectives can be divided up into three principal arenas:

1. Diagnostic and disease progression markers
   Tumour proteins and genetic markers, identified by a genetic screening program, are being developed as diagnostic markers for:

   • early detection of cancer in asymptomatic patients (to enable early and more efficient treatment)
   • simpler diagnosis of cancer in patients presenting with symptoms
   • monitoring the disease status of patients after surgery or clinical intervention to obtain early evidence of relapse.

2. Prognostic and risk prediction markers
   Complex patterns of gene expression that predict the clinical behaviour of cancer, such as the likelihood of recurrence following treatment or the likely response to chemotherapy, are also being identified by Pacific Edge. These patterns can then be used to tailor treatment to an individual’s particular cancer and specific needs. An example of this would be the company’s colorectal cancer gene signatures that predict the probability of rapid disease progression.

3. Genes for use in the identification of novel therapeutic treatments for cancer
   Pacific Edge’s gene database contains several thousand genes that have expression patterns associated with tumour initiation and development. These genes provide unique opportunities to develop drugs that target specific processes in tumour development. This is an exciting field as returns, whilst very uncertain, have the potential for very large payback. It is anticipated that Pacific Edge will partner with suitable pharmaceutical companies to exploit these aspects of the gene expression database.

Pacific Edge’s gene and protein tests seek to address these and other crucial medical needs by making diagnostic tools which are easier to use, cheaper and more accurate. Its markets are global in scope and represent high value added targets.

Pacific Edge is primarily focused on developing products relating to the diagnosis, prognosis and disease progression of cancer. However, we have also identified pharmacogenomics and therapeutic drugs as areas where our assets and skills can be utilised. Pacific Edge’s recent license agreement with Medigen Biotechnology Corp is a testament to the potential of our key asset, namely its genetic data base.