FDA Clears SQI’s SQiDworks Diagnostics Platform and IgXplex Celiac Qualitative Assay for Sale in the United States

TORONTO – SQI Diagnostics Inc. (the “Company”, “SQI Diagnostics” or “SQI”) (TSX-V: SQD), a life sciences company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics, today announced that it has received notice that the United States Food and Drug Administration (FDA) has cleared the Company’s automated SQiDworks(TM) diagnostics platform and its IgXPLEX(TM) celiac qualitative assay for marketing in the United States.

The qualitative celiac assay, which tests for anti-tissue transglutaminase: IgG and IgA, is the second multiplexed assay cleared by the FDA to run on the Company’s automated SQiDworks diagnostics platform. The Company’s IgXPLEX(TM) rheumatoid arthritis assay was cleared in October, 2009.

SQI is in the process of completing its development of its 6- plex quantitative celiac panel for the U.S. market; the 6-plex product will include quantitative determinations of IgA and IgG anti- gliadin antibodies (AGA), IgA and IgG anti-tissue transglutaminase (tTG) antibodies, and IgA and IgG anti-deamidated gliadin peptide (DGP) antibodies. The Company has previously received Health Canada licenses for quantitative and qualitative 4-plex celiac assays and has CE marked its quantitative celiac assay in Europe.

Celiac disease is a digestive condition brought on by the consumption of the protein gluten, which is found in foods containing wheat, barley or rye. Celiac disease causes an immune reaction in the small intestine, causing damage to the surface of the small intestine and an inability to absorb certain nutrients. A recent study in the July 2009 edition of the journal Gastroenterology reported that the incidence of celiac disease has quadrupled since 1950 to one in 106 Americans and that the disease remains poorly diagnosed.

About SQI Diagnostics SQI Diagnostics is a life sciences company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics. Our proprietary microarray tests and fully-automated systems are designed to simplify protein and antibody testing workflow, increase throughput, reduce costs and provide excellent data quality. For more information, please visit www.sqidiagnostics.com. The contents of our website are specifically not incorporated by reference in this press release.

This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Company’s current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our expectations regarding the progress and the successful and timely completion of the various stages of the regulatory approval process, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.

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