Clinical Data, Inc. (NASDAQ: CLDA) today announced results for its second fiscal quarter ended September 30, 2008, delivering another quarter of solid financial performance. Total revenue for the second quarter rose 22% to $8.8 million from $7.2 million for the same period a year ago, when excluding the impact associated with certain Cogenics Icoria grant funded research projects of $1.8 million which concluded in December 2007. Revenue for the six months ended September 30, 2008 increased $5.2 million, or 41%, to $18.0 million, compared to the same period a year ago, excluding the impact associated with grant funded research projects of $2.9 million in this period.

Clinical Data's PGxHealth genetic testing services continued to show record growth increasing revenue by 127%, to $2.2 million, and 125%, to $4.1 million, for the three and six month periods ended September 30, 2008 compared to the same periods a year ago. Increasing revenues for the three and six month periods ended September 30, 2008 were driven primarily by sales of the Company's FAMILION(R) cardiac tests.

Compared to the same periods in fiscal 2008, and excluding Cogenics Icoria grant revenues, the Company's Cogenics genomic service business revenues grew by 5% and 27% for the three and six month periods ended September 30, 2008, respectively.

Second Quarter Highlights

Vilazodone(TM)

-- Remained on track for a new drug application (NDA) filing by end of calendar year 2009

-- Second registration trial more than 75% enrolled and long-term safety study achieved first milestone of 300 patients receiving six months of treatment

Genetic and Pharmacogenetic Tests

-- Increased revenue from FAMILION genetic tests for inherited cardiac conditions sequentially by 20%, and by 127% for same period a year ago

-- Obtained additional positive coverage decisions for FAMILION tests, with 155 million covered lives to date, up from 100 million in beginning of calendar year 2008

Strategic Acquisitions

-- Acquired Adenosine Therapeutics, significantly expanding the Company's therapeutics pipeline, including a late-stage product, Stedivaze(TM), for cardiac perfusion imaging

Recently Proposed Acquisition

-- On October 27, 2008, Clinical Data and Avalon Pharmaceuticals announced a definitive merger agreement that would significantly expand Clinical Data's oncology business

-- All-stock transaction valued at $10 million, with contingent
payment of up to $2.5 million of Clinical Data common stock payable
upon achievement of certain milestones by Avalon

"During the quarter, we took a major step in enhancing our therapeutics pipeline through the acquisition of Adenosine Therapeutics," said Drew Fromkin, President and Chief Executive Officer of Clinical Data. "More recently, we announced the proposed acquisition of Avalon Pharmaceuticals, which upon completion, will offer promising oncology drug candidates, relationships with large pharmaceutical clients, and a biomarker-based drug discovery platform to drive continued innovations and intellectual property. Together, these acquisitions will allow us to align our biomarker strategy with additional technologies, biomarkers, compounds, and expertise for developing and commercializing targeted therapeutics and diagnostics."

Genomic Services

-- Increased Cogenics genomics service revenue 5% to $6.4 million

-- Established global genotyping supply agreement with H. Lundbeck A/S

-- Received Eli Lilly and Company's Global Supplier Award

Corporate Financing

-- Completed a $25.0 million private placement, resulting in total cash, cash equivalents and marketable securities of $52.1 million at September 30, 2008

Three Months Ended September 30, 2008 Compared to the Three Months Ended September 30, 2007

Excluding the impact associated with certain Cogenics Icoria grant funded research projects completed in December 2007, total revenue for the three months ended September 30, 2008 was $8.8 million, increasing 22%, or $1.6 million, from $7.2 million for the same period a year ago. Including the impact of the grant revenue totaling $1.8 million for the quarter, total revenues decreased by $239,000, or 3%, compared to the same period a year ago.

PGxHealth revenue for the three months ended September 30, 2008 was $2.4 million, increasing 111%, or $1.3 million, from $1.1 million for the same period a year ago. This increase was driven by $2.2 million in predictive tests sales, a 127% increase from last year's sales of $1.0 million for the same period. As of September 30, 2008, PGxHealth was an approved Medicare provider for its genetic testing services, and a Medicaid provider in 37 states and the District of Columbia, up from just seven states in January 2008. To accelerate revenue growth, the Company expanded its PGxHealth sales force and added new genetic tests, such as the FAMILION test for Hypertrophic Cardiomyopathy (HCM), which was launched in May 2008.

Excluding the impact associated with certain Cogenics Icoria grant funded research projects completed in December 2007, Cogenics revenue was $6.4 million for the three months ended September 30, 2008, an increase of $322,000, or 5%, from $6.1 million for the same period in fiscal 2008. The increase was due primarily to the inclusion of a full quarter of Epidauros (Cogenics Germany) revenue. This was partially offset by a decrease in Cogenics' core service lines compared to the prior year, due to an unusually robust second quarter in fiscal 2008. Including the Cogenics Icoria grant revenue of $1.8 million in fiscal year 2008, total Cogenics revenues decreased by $1.5 million, or 19%, to $6.4 million for the three months ended September 30, 2008, down from $7.9 million for the same period last year.

Gross profit margins increased to 28% for the three month period ended September 30, 2008, up from 19% for the same period a year ago. The increase in gross profit margins was driven primarily by the overall increase in revenue during the period and greater lab efficiencies.

Research and development expenses increased $6.5 million to $9.4 million, or 224%, from $2.9 million for the three months ended September 30, 2007. The increase was attributable primarily to the ongoing long-term safety and Phase III registration trials for vilazodone that began in December 2007 and March 2008, respectively, and to a lesser extent, costs incurred at Adenosine since the acquisition date.

Sales and marketing expenses increased $1.4 million to $3.6 million, or 62%, for the three months ended September 30, 2008, up from $2.2 million for the same period a year ago. The increase was due to the development of a new sales and marketing function within PGxHealth in September 2007, including the hiring of a new sales force and senior sales and marketing management, and the addition of Cogenics Germany's sales and marketing expenses.

General and administrative expenses for the second quarter of fiscal 2009 were $7.3 million, an increase of 4%, or $256,000, from $7.1 million for the three months ended September 30, 2007. The increase was driven by a full quarter of Cogenics Germany expenses.

In the second quarter, the Company also reported a non-cash charge of purchased in-process research and development (IPR&D) expense totaling $52.1 million related to the August 4, 2008 acquisition of Adenosine Therapeutics. Estimates used in calculating IPR&D are based upon certain assumptions made regarding the value of the purchased assets, which in this case exceeded the initial purchase price.

Cash, cash equivalents and marketable securities were $52.1 million at September 30, 2008, which includes proceeds from a $25.0 million private placement completed in September 2008.

Six Months Ended September 30, 2008 Compared to the Six Months Ended September 30, 2007

Excluding the impact associated with the conclusion of Cogenics Icoria grant funded research projects of $2.9 million, revenue for the six months ended September 30, 2008 increased $5.2 million, or 41%, from $12.8 million to $18.0 million compared to the same period a year ago.

PGxHealth revenue for the six months ended September 30, 2008 increased $2.3 million, or 113%, to $4.4 million from $2.1 million for the same period a year ago. This increase was primarily driven by $2.3 million in sales of predictive tests, an increase of 125% from the same period a year ago. The introduction of PGxHealth's new commercial sales and marketing team in September 2007 and increased coverage from third-party payers, such as Medicare and Medicaid, has had a significant impact on revenues.

Excluding the impact associated with Cogenics Icoria grants, Cogenics revenue increased $2.9 million, or 27% to $13.6 million for the six months ended September 30, 2008 compared to $10.7 million for the same period a year ago. The increase in revenue was due to the acquisition of Cogenics Germany with revenues of $2.4 million during the first half of the fiscal year ended September 30, 2008, compared to $253,000 for the same period a year ago. In addition, revenues from Cogenics' core service lines increased $708,000, or 7%, from $10.5 million for the six months ended September 30, 2007 to $11.2 million for the six months ended September 30, 2008. Including the impact of Cogenics Icoria grants, Cogenics revenue remained flat at $13.6 million for the six months ended September 30, 2008 and 2007.

Gross profit margins increased from 20% for the six months ended September 30, 2007 to 27% for the same period in fiscal 2009. The increase was due to growing revenue and cost reduction activities within the Cogenics operations.

Research and development expenses increased $12.9 million, or 271%, from $4.8 million for the six months ended September 30, 2007 to $17.7 million for the same period in fiscal 2009. The increase was primarily related to the ongoing long-term safety and Phase III registration trials for vilazodone, which began in December 2007 and March 2008, respectively, and, to a lesser extent, costs incurred at Adenosine Therapeutics since the acquisition date.

Sales and marketing expenses increased $2.9 million, or 71%, from $4.1 million for the six months ended September 30, 2007 to $7.0 million for the same period in fiscal 2009. The increase was principally due to the new sales and marketing function within PGxHealth, including the hiring of a new sales force and senior level sales and marketing management, and costs incurred by Cogenics Germany for the six months ended September 30, 2008. Cogenics Germany was not acquired until August 23, 2007 and accordingly, there were minimal expenses included in sales and marketing expenses during the six months ended September 30, 2007.

General and administrative expenses increased $951,000, or 8%, from $12.5 million for the six months ended September 30, 2007 to $13.4 million for the same period in fiscal 2009. The increase was the result of additional costs incurred by Cogenics Germany of $1.0 million for the six months ended September 30, 2008 to $1.3 million from $289,000 for the period August 23, 2007 (date of acquisition) to September 30, 2007.

"Solid revenue growthagain this quarter from our FAMILION family of genetic tests, the advancement of our vilazodone Phase III and long-term safety trials, and the achievement of other key objectives further demonstrates our ability to execute," said Drew Fromkin. "Momentum is building with the growingadoption of our genetic tests among physicians, patients, and payers. This success is due to the contributions of our specialized cardiovascular sales and managed care force, enhanced lab infrastructure, expanded client and reimbursement services, and the important role that ourgenetic tests play in improving patient health.

In the coming quarters, we anticipate completing our Phase III registration trial of vilazodone for the treatment of depression, moving Stedivaze into Phase III trials for cardiac perfusion imaging, growing our genetic testing business with new and enhanced tests,and moving forward with the most promising compounds from our expanding pipeline alone, or in collaboration with leading experts, institutions and industry partners,"Mr. Fromkin added.

About Clinical Data, Inc.

Clinical Data is a global biotechnology company unlocking the potential of molecular discovery, From Targeted Science to Better Healthcare(TM). Its PGxHealth(R) division focuses on proprietary biomarker and pharmacogenetic test development, as well as targeted therapeutics to help predict drug safety and efficacy, thereby reducing health care costs and improving clinical outcomes. Its Cogenics(R) division provides genomics services to both research and regulated environments. Through these divisions, Clinical Data is leveraging advances in molecular discovery to provide tangible benefits for patients, doctors, scientists and health plans worldwide. Visit the Company's website at www.clda.com for more information.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This press release contains certain "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)", "feel(s)", "believe(s)", "will", "may", "anticipate(s)", "intend(s)" and similar expressions are intended to identify such forward-looking statements. These statements include, but are not limited to, statements about forecasts of market growth, future revenue, benefits of the proposed merger, Clinical Data's ability to successfully integrate the operations, business, technology and intellectual property obtained in all of our acquisitions; Clinical Data's ability to obtain regulatory approval for, and successfully introduce its products; Clinical Data's ability to expand its long-term business opportunities; financial projections and estimates and their underlying assumptions; and statements regarding future performance. All of such information and statements are subject to certain risks and uncertainties, the effects of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: difficulties encountered in integrating merged businesses; approval of the transaction by the stockholders of Avalon; whether certain market segments grow as anticipated; whether any of our therapeutic products will advance further in the clinical trials process and whether and when, if at all, any of our therapeutic products will receive final approval from the U.S. Food and Drug Administration and equivalent foreign regulatory agencies and for which indications; whether our therapeutic products will be successfully marketed if approved; the extent to which genetic markers (haplotypes) are predictive of clinical outcomes and drug efficacy and safety; the strength of our intellectual property rights; competition from pharmaceutical, biotechnology and diagnostics companies; whether we will be able to develop or acquire additional products and attract new business and strategic partners; changes in government regulations, and changing relationships with customers, payers, suppliers and strategic partners; and those risks identified and discussed by Clinical Data in their filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Clinical Data does not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures in Clinical Data's SEC periodic and interim reports, including but not limited to its Annual Report on Form 10-K for the fiscal year ended March 31, 2008, Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2008, and Current Reports on Form 8-K filed from time to time by Clinical Data You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                 September 30,           March 31,
(In thousands)                                                   2008                    2008
                                                                 (UNAUDITED)
ASSETS
Current Assets:
Cash and cash equivalents                                        $       41,200          $      54,755
Marketable securities, at fair value                                     10,875                 -
Accounts receivable, net                                                 7,102                  6,290
Prepaid expenses and other current assets                                2,882                  2,534
Total current assets                                                     62,059                 63,579
Marketable securities, at fair value                                     -                      12,725
Property, plant and equipment, net                                       9,479                  9,169
Goodwill & intangible assets, net                                        40,184                 43,197
Other assets, net                                                        508                    778
TOTAL ASSETS                                                     $       112,230         $      129,448
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt and capital leases             $       8,069           $      2,562
Accounts payable, accrued expenses and other liabilities                 15,004                 15,689
Total current liabilities                                                23,073                 18,251
Long-Term Liabilities                                                    39,781                 5,122
Stockholders' Equity                                                     49,376                 106,075
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                       $       112,230         $      129,448

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
                                                                  Three Months Ended                        Six Months Ended
                                                                  September 30,                             September 30,
                                                                       2008               2007                  2008             2007
                                                                  (UNAUDITED)
Revenues                                                          $    8,832         $    9,071             $   18,021       $   15,698
Cost of revenues                                                       6,389              7,379                 13,236           12,612
                                        Gross profit                   2,443              1,692                 4,785            3,086
Operating expenses:
                Research and development                               9,411              2,901                 17,693           4,768
                Sales and marketing                                    3,647              2,258                 6,965            4,081
                General and administrative                             7,333              7,077                 13,422           12,483
                Purchased in-process research and development          52,100             -                     52,100           -
                                        Total operating expenses       72,491             12,236                90,180           21,332
Operating loss                                                         (70,048  )         (10,544  )            (85,395  )       (18,246  )
All other income, net                                                  95                 919                   350              915
Loss from continuing operations before taxes                           (69,953  )         (9,625   )            (85,045  )       (17,331  )
Provision for income taxes                                             (33      )         (170     )            (117     )       (187     )
Loss from continuing operations                                        (69,986  )         (9,795   )            (85,162  )       (17,518  )
(Loss) income from discontinued operations                             (24      )         (1,087   )            288              1,223
Net loss                                                          $    (70,010  )    $    (10,882  )        $   (84,874  )   $   (16,295  )
(Loss) income per basic and diluted share:
                Continuing operations                             $    (3.30    )    $    (0.51    )        $   (4.04    )   $   (1.02    )
                Discontinued operations                                -                  (0.06    )            0.01             0.07
                Net loss                                          $    (3.30    )    $    (0.57    )        $   (4.03    )   $   (0.95    )
Weighted average shares: basic and diluted                             21,233             19,194                21,070           17,130

SOURCE: Clinical Data, Inc.

Clinical Data, Inc. 
Theresa McNeely, 617-527-9933 X3373 
Vice President, Corporate Communications

The two Phase 1 studies (D2000-1 and D2000-2) were designed to evaluate the safety and immunologic activity of NEUVENGE in patients with metastatic HER2/neu-expressing cancer who had evidence of progressive disease following standard therapies. Patients underwent three infusions of NEUVENGE over an approximately one month period. Patients who achieved a partial response, or had stable disease lasting through Week 48, were eligible for re-treatment with a booster, using the same protocol and dose as the initial treatment.

A total of 37 patients were treated. Results from the integrated analysis showed that treatment with NEUVENGE was generally well tolerated. The majority of side effects were mild, including infusion-related fatigue, fever and chills. The median T cell proliferative stimulation index in response to the immunizing antigen increased from 1.3 at baseline to 19.7 at Week 4 (p = 0.0002), 19.4 at Week 8 (p < 0.0001) and 20.7 at Week 16 (p = 0.02). Immune monitoring performed in three of four patients who underwent repeat treatment suggested an increase in immune response following the booster treatments. Five patients had prolonged disease stabilization ranging from 48 to 94 weeks, without the addition of other cancer therapy other than the continuation of bisphosphonates. In addition, one patient experienced a partial response lasting approximately six months.

"We were pleased to see consistent results across both NEUVENGE trials, particularly as they further substantiate the tolerability of this therapeutic approach," stated Mark Frohlich, M.D., senior vice president, clinical affairs and chief medical officer. "These data provide further evidence of the promise of our active cellular immunotherapy platform which also includes PROVENGE(R) (sipuleucel-T), our lead product candidate currently in late-stage development for prostate cancer. We expect to receive the final data analysis from our ongoing Phase 3 PROVENGE trial in mid-2009 and look forward to discussing further clinical development plans for NEUVENGE and our immunotherapy pipeline after that time."

About NEUVENGE

NEUVENGE (lapuleucel-T) is an investigational product in a new class of active cellular immunotherapies (ACIs) that are uniquely designed to stimulate a patient's own immune system. ACIs hold promise because they may provide patients with a meaningful clinical benefit with low toxicities. NEUVENGE is designed to stimulate cellular immune responses against HER2/neu. HER2/neu is over-expressed in a variety of solid tumors, including breast, colorectal, bladder and ovarian cancer. In clinical studies, patients typically received three infusions over a one-month period as a complete course of therapy.

About Dendreon

Dendreon Corporation is a biotechnology company whose mission is to target cancer and transform lives through the discovery, development and commercialization of novel therapeutics. The Company applies its expertise in antigen identification, engineering and cell processing to produce active cellular immunotherapy product candidates designed to stimulate an immune response. Dendreon is also developing an orally-available small molecule that targets Trp-p8 that could be applicable to multiple types of cancer as well as benign prostatic hyperplasia. The Company has its headquarters in Seattle, Washington and is traded on the Nasdaq Global Market under the symbol DNDN. For more information about the Company and its programs, visit http://www.dendreon.com.

Except for historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Factors that could affect these forward-looking statements include, but are not limited to, the efficacy of PROVENGE or sipuleucel-T, the company's lead product candidate to treat men suffering from prostate cancer, the efficacy of NEUVENGE or lapuleucel-T, risks and uncertainties surrounding the presentation of data to the FDA and approval of product applications by the FDA and risks and uncertainties inherent in the process of discovering, developing and commercializing drugs that are safe and effective for use as human therapeutics. Factors that may cause such differences include risks associated with completing our clinical trials, the risk that the safety and/or efficacy results of existing clinical trials or from additional clinical trials for PROVENGE or NEUVENGE will not support approval for a biologics license, the risk that the FDA may interpret data differently than we do or require more data or a more rigorous analysis of data than expected, the risk that the results of a clinical trial for PROVENGE, NEUVENGE or other product may not be indicative of results obtained in a later clinical trial, risks that we may lack the financial resources and access to capital to fund required clinical trials or commercialization of PROVENGE or NEUVENGE, our dependence on the efforts of third parties, and our dependence on intellectual property. Further information on the factors and risks that could affect Dendreon's business, financial condition and results of operations are contained in Dendreon's public disclosure filings with the U.S. Securities and

SOURCE Dendreon Corporation

http://www.dendreon.com

The IDV software will be an optional upgrade to the Image Qualifier IQX97-OCR software and will allow users to test designs and images before they are printed. A number of tools are available to assist the user to understand if their designs will pass or fail Image Ready Standards. These tools will help the user understand what changes are needed to make their documents pass Image Ready Standards for Check 21 (American National Standards - ANS X9.100 -110 and X9.100-30, formerly ANSI X9.7) in the USA and CPA Standard 006 in Canada.

Check printers who design check backgrounds will find the IDV software an invaluable tool. It will save them time and money while providing a new capability of designing custom checks easily to meet customer's unique specifications. This powerful, yet easy to use software application creates the bottom line results the industry has been waiting for.

About Electronic Check Image Testing

The IQX97-OCR tests check background designs and identifies problems in any of the 5 Areas of Interest (AOI) - Date, Payee, Legal, Signature and Convenience Amount Rectangle (CAR) fields, as well as testing areas on the back of the check. It verifies legibility and quality of printed documents and OCR fonts. RDM's Image Qualifier IQX97 - OCR has automatic features to measure reflectance and contrast values of paper checks to determine if they meet the required standards. It also measures all reflectance values by automatically taking samples from a scanned document image. RDM's Image Qualifiers are installed in major financial institutions, check printers and equipment vendors in over 35 countries. The RDM Image Qualifier IQX97-OCR is the industry standard for validating image quality.

About RDM Corporation

RDM Corporation is headquartered in Waterloo, Ontario and trades on the Toronto Stock Exchange under the symbol RC. RDM is a leading provider of specialized software and hardware products for electronic payment processing. RDM has pioneered electronic check conversion systems and web based image and transaction management services for banks, retailers, payment processors and government agencies as well as print quality control and image quality systems for a variety of global customers. For further information, visit RDM's website at www.rdmcorp.com.

This news release contains forward-looking statements. Forward-looking statements are based on estimates and assumptions made by RDM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RDM believes are appropriate in the circumstances. Many factors could cause RDM's actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements. Risk factors relating to RDM are discussed in the Risks and Uncertainties section of RDM's Annual Information Form and year-end Management's Discussion and Analysis. These factors should be considered carefully, and readers should not place undue reliance on RDM's forward-looking statements. RDM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE RDM Corporation

In the event the Company receives notice that its common stock is being delisted from The NASDAQ Global Market, the NASDAQ Marketplace Rules permit the Company to appeal the delisting to a NASDAQ Listing Qualifications Panel. Alternatively, NASDAQ may permit the Company to transfer its common stock to The NASDAQ Capital Market if it satisfies the requirements for initial inclusion set forth in NASDAQ Marketplace Rule 4310(c), except for the minimum bid price requirement. If its application for transfer is approved, the Company would have an additional 180 calendar days to comply with the minimum bid price requirement in order to remain on The NASDAQ Capital Market.

About Avalon Pharmaceuticals

Avalon is a biopharmaceutical company focused on the discovery, development and commercialization of first-in-class cancer therapeutics. AvalonRx(R) is the company's proprietary platformwhich is based onlarge-scalebiomarker identification and monitoring, used to discover and develop therapeutics for pathways that have historically been characterized as "undruggable." Avalon is headquartered in Germantown, MD.

Forward Looking Statements

This announcement may contain forward-looking statements that involve risks and uncertainties. Such statements are based on certain assumptions and actual results could differ materially from those currently anticipated as a result of a number of factors, risks and uncertainties. The information in this Release should be read in conjunction with the Risk Factors set forth in our 2007 Annual Report on Form 10-K and updates contained in subsequent filings we make with the SEC.

SOURCE: Avalon Pharmaceuticals, Inc.

Avalon Pharmaceuticals, Inc. 
C. Eric Winzer 
Executive Vice President & 
Chief Financial Officer 
301-556-9900 
Fax: 301-556-9910 
info@avalonrx.com 
or 
The Trout Group 
Chad Rubin (Investors) 
646-378-2947