Biomoda Inc. Retains TriCore of Albuquerque for Sputum Sampling Processing; Recognized World Leader in Laboratory Technology to Aid Biomoda

Business Wire, July 1, 2004

ALBUQUERQUE, N.M. -- Biomoda Inc. and TriCore Reference Laboratories (http://tricore.org), both headquartered in Albuquerque, have entered into an agreement for TriCore to handle sputum sample processing and management for Biomoda and for TriCore to employ its expertise in cytopathology to greatly enhance and accelerate Biomoda's diagnostic development activities.

Biomoda's patented products, primarily involved with early detection and targeted treatment of specific cancers, will be supported by its relationship with TriCore, a not-for-profit organization sponsored by three of New Mexico's leaders in medical care and research: the University of New Mexico's University Hospital; Presbyterian Healthcare Services (est. 1908); and St. Vincent Hospital (est. 1865).

By teaming with TriCore, Biomoda is continuing to lessen the "time to market" by outsourcing strategic areas of its research, development and marketing effort to world-class professional medical organizations both at home in Albuquerque and around the world.

TriCore Reference Laboratories (Albuquerque, N.M) is a not-for-profit, full-service medical reference laboratory serving physicians and hospitals throughout New Mexico and the Southwest. In addition to clinical and anatomic pathology testing and consultative services, TriCore participates in medical scientific research through collaborations with local and national biotech firms. Founded in 1998 as a regional laboratory consolidation, TriCore's sponsors include the University of New Mexico Hospital and Presbyterian Healthcare Services in Albuquerque and St. Vincent Hospital in Santa Fe.

Biomoda Inc., a development stage in-vitro diagnostics organization, is focused on research, development and commercialization of cancer diagnostics. The company, exclusive worldwide licensee from the University of California of several patents developed for noninvasive early detection and treatment of lung cancer, is in the process of registering additional patents in this area. The company's proprietary technologies provide minimally invasive and minimal impact approaches as cancer diagnostic products. Operating from its laboratory situated at Kirtland Air Force Base (Albuquerque, N.M.), the company is in the process of expanding and expediting its product development and commercialization with a number of strategic alliances that will be announced over the next 60 days.

This news release contains forward-looking statements that involve a high degree of risk and uncertainty. Such statements include, but are not limited to, statements containing the words "believes," "anticipates," "expects," "estimates" and words of similar import. The company's actual results could differ materially from any forward-looking statements, which reflect management's opinions only as of the date of this report, as a result of risks and uncertainties that exist in our operation, development efforts and business environment. The company undertakes no obligation to revise or publicly release the results of any revisions to these forward-looking statements. You should carefully review the risk factors in other documents that the company files from time to time with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q. For additional information, visit the Biomoda Web site at www.biomoda.com or call us at 505-821-0875.