Newsletter

April 5, 2006

Volume VII, Issue 30

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To OTC Journal Members:

Xenomics (OTC BB: XNOM): Is an '05 Big Win Deja Vu All Over Again?

I haven't written anything about XNOM since June of last year. In the spring of 2005, if you followed my suggestion on XNOM, it was a flat out winner for OTC Journal subscribers. Simply put: Bought the week of March 17th at about $2.50. Out the week of June 11th at about $4.50. The idea was published in an edition, the sell published in the BLOG. For sell side trading, always check the BLOG. Net Return over 80% over four months. Annualized return: You do the math. If they were all like this I would be retired and living on my yacht.

Xenomics made a major announcement after the close today which harkens thoughts of another OTC Journal idea with which we have done very well.

A gentleman named Colin Foster has agreed to join the Board of Directors of XNOM. Foster is the former President and CEO of Bayer, the $2 billion per year pharma behemoth. He is coming on board to help guide XNOM in the commercialization of its revolutionary, patented Transrenal-DNA (Tr-DNA) platform. XNOM intends to use its Tr-DNA technology to develop breakthrough medical testing products for the detection and monitoring of diverse diseases and conditions, including prenatal genetic conditions, HIV, tuberculosis, malaria and others.

The company has been very quiet of late and the stock just made a new all time low. In fact, if we're lucky, at tomorrow's open it should be trading somewhere in the $2 range, a full 25% below the last suggested entry point one year ago.

This development if reminiscent of HyperDynamics (AMEX: HDY). There was a major transformation at HDY after the company added former Ford Motor Company Chairman Red Poling to the Board. All of a sudden the company had new credibility, an AMEX listing, and a new vision, not to mention the stock trading like a champ. Names like Foster's lend a great deal of credibility to the potential for the technology.

This company has a phenomenal platform for disease detection. Here's an excerpt from the original presentation last March. Some of the information will now need to be updated, but this will serve a good starting point:

Like many biotech breakthroughs, this particular technology has its roots in a 20 year old discovery. In 1986, Dr. Samuil Umansky was working for the Russian Health Ministry and doing clinical research on the radiation poisoning from the Chenobyl disaster.

Dr. Umansky discovered that radiation poison could be detected in urine. In order to be in urine, the radiation had to survive the kidney's highly effective cleansing process. The radiation poison was actually carried in the DNA. Until that discovery, the health sciences community never realized DNA could survive the kidneys and be passed out of the body in urine.

Hence the phrase "Transrenal DNA"- this is DNA which has been passed through the kidneys and can be detected and analyzed in urine.

Fast forward to 1996. Dr. Umansky is in the US, and has three patents concerning the use of Transrenal DNA. The three patents cover the applications of Transrenal DNA for use in transplantation, cancer, and early genetic testing of an unborn fetus.

The company, as it exists today, has been operating since last July. Despite being public since that time, XNOM has never made any effort to get its message out to investors. Therefore, you get the first look.

The company sees potential revenue generating applications in four areas for Transrenal DNA;

Cancer Detection
Infectious Disease Detection
Genetic Testing of an Unborn Fetus
Transplantation Monitoring

XNOM has spent the last nine months gathering data in its lab facility in Princeton, NJ. Ten highly qualified scientists work there on a full time basis doing the foundational research.

To date, XNOM has successfully harvested over 300 samples, otherwise known as "data points" in the industry. They have identified alien DNA (DNA not from the mother) in 119 urine samples from pregnant women, and analyzed data points from 200 samples of cancer patients in a study conducted with Thomas Jefferson University.

XNOM is destined to end up on the radar screens of many investors in the coming months. XNOM is preparing to start clinical trials for an FDA Approval of its first application in April. Since this is a non-invasive urine test, XNOM need only demonstrate the product works. They don't have the same stringent requirements you would have with a new drug. Therefore, XNOM anticipates it will only take about 2 years to obtain the FDA Approval. Clinical data will be made available to the public markets thoughout the course of the studies.

XNOM is taking aim at the barbaric "AMNIOCENTESIS" test performed on pregnant women worldwide. In the US alone there are approximately 6.2 million pregnancies each year. Of those, 10% to 15% are considered high risk for genetic diseases such as Downs Syndrome, Sickle Cell Anemia, Tay Sachs, and Huntingtons.

Currently, most pregnant women undergo a three panel test to prescreen prior to amniocentesis. If the doctor and patient decide to move forward, the amniocentesis test is performed.

An eight inch needle is inserted into the pregnant women's abdomen. Barbaric for a simple test. It penetrates the amniotic sack, and a small amount of amniotic fluid is withdrawn. The test is highly invasive and very dangerous. About 1% of tests performed lead to negative complications.

The amniotic fluid contains fetal DNA, which can be tested for genetic diseases.

XNOM expects to begin clinical trials in April for a test which could make amniocentesis obsolete. The test will be designed to replace the three panel test doctors recommend before considering amniocentesis. Most pregnant women who receive medical care in the US take this test.

XNOM's patented technology has the capability of identifying the fetal DNA in the mother's urine. Once identified, the DNA can be tested for genetic diseases.

Down the road XNOM intends to develop cancer and organ transplantation tests using the patented Transrenal DNA. In transplantation the patient has tissue with someone else's DNA. Early rejection can be detected in DNA changes. DNA from tumors can also be detected. Early detection of colon, liver, and pancreatic cancer is also possible with Transrenal DNA.

As I stated, I will start looking at updating the company's current state of affairs. In the interim, on today's news I believe the stock should be bought, especially if it wants to hang in there around the $2 level. Use extreme caution on a big gap.

Here is the complete text of today's news for your review:

Press Release Source: Xenomics, Inc.

Xenomics Appoints Former Bayer Pharmaceuticals CEO and President Colin J. Foster to its Board of Directors

Wednesday April 5, 4:01 pm ET

Foster to Bring Product Development, Commercialization, and International Perspectives to Xenomics

NEW YORK--(BUSINESS WIRE)--April 5, 2006--Xenomics, Inc. (OTCBB:XNOM - News; FWB:XE7), a developer of next-generation DNA diagnostic technologies, has appointed Colin J. Foster, former CEO and President of Bayer Pharmaceuticals Corporation & Regional Head of North American Pharmaceutical Operations, to its Board of Directors.

Mr. Foster brings broad experience and success in numerous areas of the multibillion-dollar biotechnology and pharmaceutical industry, with an extensive background in the commercialization and development of diagnostics. In addition to Bayer, Mr. Foster has held a variety of executive positions during his career with the global pharmaceutical company Sandoz.

While serving as Bayer President and CEO, Mr. Foster directed a 3,500-person organization with $2 billion in sales for North America which, under his leadership during 2002 through 2004, exceeded financial targets each year. Additionally, he oversaw the significant evolution of Bayer's US Pharmaceutical business including its notable strategic alliance with Schering Plough in 2004.

Mr. Foster has also served as Region Head of Bayer's Diagnostics Division in the United Kingdom and Ireland as well as Vice President of Marketing for the Diagnostics Division in the United States. In those roles he focused commercial efforts on markets with the greatest profit potential, increased sales of core products and doubled the rate of growth of the business.

As a member of the Xenomics Board of Directors, Mr. Foster will help guide Xenomics in the commercialization of its revolutionary, patented Transrenal-DNA (Tr-DNA) platform. Xenomics intends to use its Tr-DNA technology to develop breakthrough medical testing products for the detection and monitoring of diverse diseases and conditions, including prenatal genetic conditions, HIV, tuberculosis, malaria and others.

"As a top biotechnology executive and leader, Colin brings Xenomics the experience and the vision necessary to transform technology into successful medical products" said Dr. L. David Tomei, CEO of Xenomics. "To have an executive of Colin's stature joining our board is a powerful endorsement of the incredible promise of our transrenal DNA technology platform which has the potential to significantly improve health care for millions of people all over the world."

"Xenomics' Tr-DNA technology provides a number of important advantages over current invasive medical DNA and diagnostic methodologies. The Company has created technology that can lead to very real advances in the diagnostics segment of the health care industry," said Mr. Foster. "It is exceptionally exciting to have the opportunity to help the Xenomics team develop this technology into applications that I believe have the potential to become breakthrough commercial products."

About Xenomics, Inc.

Xenomics is a molecular diagnostic company that focuses on the development of DNA-based tests using Transrenal DNA (Tr-DNA). Xenomics' patented technology uses safe and simple urine collection and can be applied to a broad range of applications, including prenatal testing, tumor detection and monitoring, tissue transplantation, infectious disease detection, genetic testing for forensic identity determination, drug development, and research to counter bioterrorism. Scientists from Xenomics were the first to report that fragments of DNA from normal cell death cross the kidney barrier and can be detected in urine. The Company believes that its technology will open significant new markets in the molecular diagnostics field. Xenomics has three issued U.S. patents covering different applications of the technology for molecular diagnostics and genetic testing and a corresponding allowed European patent for the Company's prenatal testing applications. The Company has organized a joint venture to conduct research on infectious disease detection with the National Institute for Infectious Diseases (Istituto Nazionale per la Malattie Infettive "Lazarus Spallanzani") in Rome, in the form of a new R&D company called SpaXen Italia, S.R.L. For more investor-specific information, including daily and historical Company stock quote data, recent news releases and an Investor Fact Sheet, please visit http://www.trilogy-capital.com/tcp/xenomics. Xenomics is also listed on the Frankfurt Stock Exchange under the symbol XE7.

Forward-Looking Statements

Certain statements made in this press release are forward looking. Such statements are indicated by words such as "expect," "might," "should," "anticipate" and similar words indicating uncertainty in facts and figures. Although Xenomics believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to be correct. As discussed in Xenomics' Form SB-2 as filed with the Securities and Exchange Commission on March 15, 2006,, actual results could differ materially from those projected in the forward-looking statements as a result of the following factors, among others: uncertainties associated with product development, the risk that Xenomics will not obtain approval to market its products, the risk that Xenomics' technology will not gain market acceptance, the risks associated with dependence upon key personnel, and the need for additional financing.

Contact:

Xenomics, Inc.
L. David Tomei, 212-297-0808
or
Trilogy Capital Partners, Inc. (Financial Communications)
Paul Karon, 800-592-6067
paul@trilogy-capital.com

Source: Xenomics, Inc.

Comments in the BLOG

There are two new BLOG postings today. Hot off the presses are comments on promising idea Bad Toys (OTC BB: BTYH). It's a correction from the edition earlier in the week, followed by some current comments on severe problem child Health Sciences Group (OTC BB: HESG). If you have an interest in one or either of these stocks, a quick read of the BLOG is strongly recommended.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. You can look there by company. The most current journal entries appear in the middle of your screen in chronological order. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels or in volatile markets. Your questions and postings do not automatically appear, so don't bother posting the same question multiple times. I personally go through to moderate and respond to every reasonable question.

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