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    Press Release - October 02, 2006

    Sernova's Sertoli Cell Research Hopes to Replace Anti-Rejection Drugs in Edmonton Protocol Islet Transplants for Diabetics

    Kelowna, B.C. -- Sernova Corp. ("Sernova") notes with interest the positive results of a recent international trial of islet transplantation for the reversal of diabetes. Published last week in the New England Journal of Medicine and subsequently reported by many media outlets, this study of the "Edmonton Protocol" also revealed the failure of anti-rejection drugs to adequately protect the transplanted, insulin producing islets.

    While the trial clearly demonstrated the benefits of islet transplantation, with more than half of the patients becoming insulin independent after one year, by two years posttransplant 76% of these patients were again requiring some insulin treatment. The subjects continued to benefit from the treatment after two years, but the authors concluded too many of the islets were killed by the immune system for most subjects to remain insulin free.

    Stated Sernova President Justin Leushner, "This study confirms that overcoming the body's immune response to the islet transplants is still the biggest hurdle to making the treatment successful. We believe the use of our proprietary Sertoli cell technology may finally solve this problem."

    To overcome the immune system response, Sernova's proposed solution is to use the Sertoli cell's proven ability to create a immunologically protected environment for transplanted cells. The working hypothesis presupposes that once islets and Sertoli cells are injected into a small vascularized chamber implanted below the skin, the islets can produce insulin in response to the body's demands while the Sertoli cells protect the islets by masking their presence from the immune system. This ongoing research is built upon several proof-of-concepts experiments already completed by Dr. David White, Sernova's principal researcher, and others.

    Sernova's research is focused on compiling pre- clinical data to support an Investigational New Drug application to the United States Food and Drug Administration. The Company owns the exclusive rights to over 20 patents related to the therapeutic use of Sertoli cells.

    About Sernova Sernova Corp. is a Canadian based, biotechnology research and development company focused on commercializing medical technologies. Current emphasis is to successfully commercialize a potential breakthrough product for insulin dependent diabetes. According to the American Diabetes Association approximately 9 million Americans require insulin injections and it is the sixth leading cause of death in the United States. Over $100 billion per year is spent in the US on treating diabetes and its complications.

    This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.


    "Dev Randhawa"

    Dev Randhawa, CEO For further information contact: TEL: (888) 318-7062 Phil Morehouse FAX: (250) 868-8493 Sernova Sciences Corp.


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