SOURCE: Rosetta Genomics, Ltd.

Rosetta Genomics, Ltd.

November 23, 2010 09:28 ET

Rosetta Genomics Settles Arbitration With Prometheus Laboratories, Regains U.S. Rights to microRNA-Based Cancer Diagnostic Tests

REHOVOT, ISRAEL and PHILADELPHIA, PA--(Marketwire - November 23, 2010) - Rosetta Genomics, Ltd. ("Rosetta") (NASDAQ: ROSG), a leading developer and provider of microRNA-based molecular diagnostics, today announced that it has settled the outstanding arbitration with Prometheus Laboratories, Inc. ("Prometheus").

Under the terms of the settlement, effective immediately, Rosetta regains U.S. commercial rights to the three microRNA-based cancer diagnostic tests licensed to Prometheus in April 2009, including miRview™ mets, miRview™ squamous and miRview™ meso. In return, Rosetta will pay Prometheus $3.1 million over the next 18 months with an initial payment of $1.2 million due on December 2, 2010.

"We appreciate the initial commercial launch efforts undertaken by Prometheus for these three cancer diagnostic tests, especially as product demand has doubled in recent months. As market interest in microRNA-based diagnostics and biomarkers has grown considerably since the time we signed the agreement with Prometheus, regaining U.S. commercial rights to these tests provides Rosetta with a significant opportunity to develop potential new partnering and co-promotional agreements for some or all of our microRNA-based oncology diagnostics," noted Kenneth A. Berlin, President and CEO of Rosetta Genomics.

"Over the years Rosetta Genomics has invested significantly in the development of our proprietary microRNA technology platform, and today we have a robust portfolio of diagnostic tests on the market, nearing commercial launch and in development. Regaining full U.S. commercial rights for all of our products allows us to offer a more comprehensive line of state-of-the-art microRNA-based products," added Mr. Berlin.

About microRNAs
MicroRNAs (miRNAs) are recently discovered, small RNAs that act as master regulators of protein synthesis, and have been shown to be highly effective biomarkers. The unique advantage of microRNAs as biomarkers lies in their high tissue specificity, and their exceptional stability in the most routine preservation methods for biopsies, including Formalin Fixed Paraffin Embedded (FFPE) block tissue and fine needle aspirate (FNA) cell blocks. It has been suggested that their small size (19 to 21 nucleotides) enables them to remain intact in FFPE blocks, as opposed to messenger RNA (mRNA), which tends to degrade rapidly. In addition, early preclinical data has shown that by controlling the levels of specific microRNAs, cancer cell growth may be reduced. To learn more about microRNAs, please visit www.rosettagenomics.com.

About Rosetta Genomics
Rosetta Genomics is a leading developer of microRNA-based molecular diagnostics. Founded in 2000, the company's integrative research platform combining bioinformatics and state-of-the-art laboratory processes has led to the discovery of hundreds of biologically validated novel human microRNAs. Building on its strong patent position and proprietary platform technologies, Rosetta Genomics is working on the application of these technologies in the development of a full range of microRNA-based diagnostic tools. The company's first three microRNA-based tests, miRview™ squamous, miRview™ mets and miRview™ meso, are commercially available through its Philadelphia-based CAP-accredited, CLIA-certified lab. To learn more, please visit www.rosettagenomics.com.

Forward-Looking Statement Disclaimer
Various statements in this release concerning Rosetta's future expectations, plans and prospects, including without limitation, statements relating to the opportunity for potential new partnering and co-promotional agreements for Rosetta's microRNA-based oncology diagnostics, the role of microRNAs in human physiology and disease, and the potential of microRNAs in the diagnosis and treatment of disease constitute forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including risks related to: Rosetta's approach to discover microRNA technology and to work on the application of this technology in the development of novel diagnostics and therapeutic tools, which may never lead to commercially accepted products or services; Rosetta's ability to obtain, maintain and protect its intellectual property; Rosetta's ability to enforce its patents against infringers and to defend its patent portfolio against challenges from third parties; Rosetta's need and ability to obtain additional funding to support its business activities; Rosetta's dependence on third parties for development, manufacture, marketing, sales, and distribution of products; Rosetta's ability to successfully develop its candidate tools, products and services; Rosetta's ability to obtain regulatory clearances or approvals that may be required for its products and services; the ability to obtain coverage and adequate payment from health insurers for the products and services comprising Rosetta's technology; competition from others using technology similar to Rosetta's and others developing products for similar uses; Rosetta's dependence on collaborators; and Rosetta's short operating history; as well as those risks more fully discussed in the "Risk Factors" section of Rosetta's Annual Report on Form 20-F for the year ended December 31, 2009 as filed with the Securities and Exchange Commission. In addition, any forward-looking statements represent Rosetta's views only as of the date of this release and should not be relied upon as representing its views as of any subsequent date. Rosetta does not assume any obligation to update any forward-looking statements unless required by law.

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