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Press release Communiqué de presse

October 23, 2006 23 October, 2006

Sernova's Research Following Latest NIH Guidelines for Type 1 Diabetes

News Releases October 23, 2006 Sernova's Research Following Latest NIH Guidelines for Type 1 Diabetes Kelowna, B.C. - Sernova Corp.'s ("Sernova") cell replacement research for the company's diabetes product development project is in line with the recently released recommendations of the US National Institute of Health's ("NIH") long range plan for diabetes research.

Entitled "Advances and Emerging Opportunities in Type 1 Diabetes Research: A Strategic Plan," one of NIH's stated goals is the development of new and improved cell replacement therapies - exactly the focus of Sernova's diabetes research.

The NIH plan recognizes the advances pioneered by the Edmonton Protocol, but the plan identified four barriers preventing cell replacement from becoming a viable treatment for a large number of diabetics. Current research by Sernova Corp demonstrates its technology may overcome those key barriers described below: ------------------------------+------------------------------ ----- NIH Noted Barrier | Sernova Solution ------------------------------+------------------------------ ----- Develop methods to produce | Use virtually unlimited supply an unlimited supply of | of pig cells, (Pig insulin islets | is compatible with humans) ------------------------------+------------------------------ ----- Improve ways to harvest | Size of pig cell supply allows islets | harvesting to be less than | optimally efficient without any | noticeable economic impact or | timing delays ------------------------------+------------------------------ ----- Reduce complication of islet | Small device for containing cells transplantation | is implanted just below the skin | in a 10 minute operation under | local anaesthetic. ------------------------------+------------------------------ ----- Prevent recurrent | When Sernova's patented Sertoli autoimmunity and the immune | cells are transplanted with the rejection of donor islets | islets in the device, a naturally | protected, immunoprivileged site | is created which minimizes or | eliminates the body's immune | response to the foreign cells. ------------------------------+------------------------------ ----- Stated Sernova President Justin Leushner, "The NIH's plan underscores the importance of developing an effective and commercially viable cell replacement therapy for insulin dependent diabetes. We believe our research and technology will lead to the breakthrough NIH envisions."

Sernova's research is currently compiling pre- clinical data to support an Investigational New Drug application to the United States Food and Drug Administration. The Company owns the exclusive rights to over 20 patents related to the therapeutic use of Sertoli cells.

About Sernova Sernova Corp. is a Canadian based, health sciences company focused on commercializing medical technologies and currently working to cure insulin dependent diabetes. According to the American Diabetes Association approximately 9 million Americans require insulin injections and it is the sixth leading cause of death in the United States. Over $100 billion per year is spent in the US on treating diabetes and its complications.

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.


"Justin Leushner"

Justin Leushner, President

For further information contact: TEL: (888) 318-7062 FAX: (250) 868-8493

Phil Morehouse Executive Vice President Sernova Corp.