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EGEI News eGene Revenue Increases 165 Percent in Second Quarter 2006 Compared to Second Quarter 2005

For the quarter, the company increased its revenue 165 percent from one year ago, recording sales of $573,305 versus second quarter sales of $216,706 in 2005. Gross profit margin increased to 67 percent in the second quarter of 2006 from 47 percent in the second quarter of 2005.

"The revenue increase in our quarterly sales reflects the ramp up of continuous product sales," said Peter Sheu, the chief financial officer of eGene. "We have reported a $275,212 net loss this quarter, including increasing non-cash expenses of $73,500 for securities issued for services and $111,864 for stock-based compensation compared to the second quarter of 2005."

Ming S. Liu, CEO of eGene, noted: "More users have realized the benefit of using our HDA-GT12 system and are integrating it in their routine DNA/RNA analysis work. We are aggressively penetrating the current DNA analysis market by replacing the current labor-intensive traditional slab gel electrophoresis method. We believe that the HDA system is creating a new era of molecular diagnostics."

eGene developed the HDA-GT12(TM) (high-performance DNA analyzer for genotyping on 12 channels), currently in use at more than 100 hospitals and research centers worldwide. The system analyzes the genetic fingerprints of living organisms through microsatellites, AFLP and RFLP. It performs fast DNA sample screening and high-resolution DNA fragment analysis (2-5bp). The system also analyzes the quality and quantity of total RNA and cRNA, determines the efficiency of cRNA and cDNA amplification reactions, and ensures the quality of fragmented cRNA. The company sells cartridges that are specific to the type of analysis to be performed. All data is then received in digital form for appropriate transmission and storage.

eGene Inc. (www.egeneinc.com) focuses its core technologies of capillary electrophoresis, microfluidics, liquid handling and automation to develop and manufacture low-cost microfluidic, miniaturized digital analyzer systems, software and consumables for biological materials testing applications. These products detect, quantify, identify and characterize DNA and RNA at high rates of specificity and sensitivity while automating routine and non-routine laboratory and industrial procedures critical to product safety, development quality and productivity. This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are made based on management's current expectations and beliefs. Actual results may vary from those currently anticipated based upon a number of factors. The company undertakes no obligation to release publicly any revision, which may be made to reflect events or circumstances after the date hereof.