SQI Diagnostics Inc. Announces Closing of Private Placement



    
                     - Company Raises CDN$3.66 Million -

    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
    U.S.A/
    

    TORONTO, June 3 /CNW/ - SQI Diagnostics Inc. (TSX-Venture: SQD), a
medical systems automation company focused on evolving laboratory-based
biomarker testing, today announced that it has sold 2,439,500 common shares of
the Company pursuant to the previously announced private placement offering
(the "Offering") at a price of CDN$1.50 per share, for gross proceeds of
CDN$3.66 million.
    Proceeds from the Financing will be used by the Company to fund research
and development, for working capital and general corporate purposes.
    Kingsdale Capital Markets Inc. acted as agent in connection with the
Offering and received a commission in an amount equal to 8% of the gross
proceeds from the sale of the common shares placed by the agent. In addition,
the agent received non-transferable warrants ("Broker Warrants") to purchase
194,200 common shares. The Broker Warrants have an exercise price of
CDN$1.50 and will be exercisable in whole or in part within 24 months of the
closing date of the Offering.
    All common shares sold in the Offering and the Broker Warrants are
subject to a four-month resale restricted period expiring October 4, 2008.

    This press release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the U.S. Securities Act or any
state securities laws and may not be offered or sold within the United States
unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.

    About SQI Diagnostics

    SQI Diagnostics is a medical systems automation company focused on
evolving laboratory-based biomarker testing. Using automation and proprietary
miniaturization technologies, SQI Diagnostics significantly improves the
economies of scale for laboratories performing multiple biomarker testing at
high volumes, allowing them to deliver patient results faster using less labor
and fewer resources. SQI Diagnostics' platform has a user-friendly interface,
high sample throughput and offers a more efficient alternative to current
testing options. SQI Diagnostics' initial products target the $1.4 billion
autoimmune disease market, with initial products for Rheumatoid Arthritis and
Thrombosis scheduled for launch in 2008. SQI Diagnostics is based in Toronto,
Canada. For further information please visit www.sqidiagnostics.com.

    Certain information in this press release is based on beliefs and
assumptions of the Company's senior management and information currently
available to it that may constitute forward-looking information within the
meaning of securities laws. Such statements reflect the current views of the
Company with respect to future events and are subject to certain risks and
uncertainties. Actual results, events, and performance may differ materially.
Readers are cautioned not to place undue reliance on these forward-looking
statements.

    This release was prepared by management of the Company who takes full
    responsibility for its contents. The TSX Venture Exchange has not
    reviewed and does not accept responsibility for the adequacy or accuracy
    of this news release.

    %SEDAR: 00021000E




For further information:

For further information: Chief Financial Officer, Andrew Morris, (416)
674-9500 ext. 229, amorris@sqidiagnostics.com; Investor Relations, James
Smith, (416) 815-0700 ext. 229, jsmith@equicomgroup.com


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