AUSTIN, Texas, — Vermillion, Inc. (NASDAQ:VRML), a leading molecular diagnostics company, has resolved all four of the non-contingent contract claims with Bio-Rad Laboratories, Inc. arising from the sale to Bio-Rad of Vermillion’s protein research tools and collaborative services business in November 2006.

In exchange for a final settlement of the non-contingent claims, Bio-Rad will receive $700,000 from an escrow account established by Vermillion for the sale transaction. Vermillion will be returned approximately $1,080,000 from the escrow account, with $50,000 remaining in escrow as security for Bio-Rad’s contingent indemnity claim in respect to the parties’ litigation with Molecular Analytical Systems.

“Given that it returns to us the majority of the $1.8 million remaining in the escrow account, we view this resolution with Bio-Rad as very successful,” said Gail S. Page, Vermillion’s president and chief executive officer. “Going forward, we can now apply more resources toward accelerating the commercialization of OVA1® and the advancement of our product pipeline.”

Vermillion sold the assets and liabilities of its protein research tools and collaborative services business to Bio-Rad in order to concentrate on developing clinical protein biomarker diagnostic products and services. In October 2009, Bio-Rad filed a proof of claim in Vermillion’s bankruptcy case for approximately $1 million, based upon four non-contingent contract claims which have now been resolved. Vermillion had accrued for this contingency in its financial statements within general and administrative expense.

About Vermillion

Vermillion, Inc. (NASDAQ:VRML) is dedicated to the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients. Vermillion, along with its prestigious scientific collaborators, has diagnostic programs in oncology, hematology, cardiology and women’s health. Additional information about Vermillion can be found at www.vermillion.com.

About OVA1®

OVA1 is a blood test for pre-surgical assessment of ovarian tumors for malignancy, using a unique multi-biomarker approach. In a published clinical trial, OVA1 achieved 99% sensitivity in detecting epithelial ovarian cancers (EOC). This included 96% sensitivity for stage I EOC, the earliest and most curable EOC stage, compared with 57% for the conventional biomarker CA125.(1) In addition, OVA1 found 70% of malignancies missed by non-specialist pre-surgical assessment,(1) and it increased detection of malignancy over American Congress of Obstetricians and Gynecologists guidelines from 77% to 94%.(2) As the first protein-based, in vitro diagnostic multi-variate index assay cleared by the U.S. Food and Drug Administration, OVA1 also represents a new class of software-based diagnostics.