Genetic Technologies Achieves Operating Cash Milestone

  
    
  
  
    
      Genetic Technologies Limited (NASDAQ:GENE)(ASX:GTG) is pleased to 
      announce that, for the first time in the Company’s 
      history, GTG has generated positive net cash flows from operating 
      activities in respect of the financial year ended June 30, 2007.
    
    
      The total cash receipts from operations and interest for the 2007 year 
      exceeded $15 million, with consolidated net cash inflows from operations 
      of approximately $2.6 million. These figures compare favourably to those 
      for the previous financial year which delivered total cash receipts of 
      $8.5 million and a net cash deficit from operations of almost $6.0 
      million.
    
    
      This significant turnaround was driven by a 70% increase in revenue from 
      licensing activities and a 23% increase in revenue from the Company’s 
      genetic testing operations, whilst operating cash costs incurred during 
      the year were materially lower than for the previous year.
    
    
      It should be noted that the following figures have been prepared in 
      accordance with accounting standards applicable in Australia, have been 
      rounded to the nearest $10,000 and are yet to be audited and may 
      therefore be subject to change.
    
    
      
        
        
        
        
        
          2007

          
            (unaudited)
          
        
        
        
        
          2006

          
            (actual)
          
        
        
        
        
          Change from prior year
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Revenue from licensing activities
        
        
        
        
          $11,340,000
        
        
        
        
          $6,685,248
        
        
        
        
          Increase of 70%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Revenue from genetic testing activities
        
        
        
        
          $3,120,000
        
        
        
        
          $2,550,221
        
        
        
        
          Increase of 23%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net cash flows from operations
        
        
        
        
          $2,620,000
        
        
        
        
          $(5,957,322)
        
        
        
        
          Increase of $8.6 million
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cash reserves
        
        
        
        
          $13,780,000
        
        
        
        
          $11,885,247
        
        
        
        
          Increase of 16%
        
      
    
    
      The Company believes that the positive results for the 2007 financial 
      year just ended validate the strategies now being pursued by GTG and 
      provide a sound platform for further growth and expansion in the 2008 
      financial year.
    
    
      Further detailed financial information will be contained in the upcoming 
      ASX Appendix 4C for the quarter ended 30 June 2007, and the ASX Appendix 
      4E which will be released in late August 2007.