REHOVOT, Israel and JERSEY CITY, New Jersey, July 24

/EMWNews/ -- Rosetta Genomics Ltd. (Nasdaq: ROSG), a leader in

the development of microRNA-based diagnostics and therapeutics, announced

today that it has successfully completed the acquisition of Parkway

Clinical Laboratories Inc. ("Parkway"), a privately-held company owning a

CLIA-certified lab located in Bensalem, Pennsylvania, for an aggregate

purchase price of $2,900,000, consisting of $1,900,000 in cash and

$1,000,000 of Rosetta's ordinary shares. An additional $300,000 will be

payable upon the achievement of certain milestones. The lab owned by

Parkway is an CLIA-certified clinical reference laboratory with an expected

$2.7M in revenues and break-even operating income in 2008.



    The acquisition is expected to allow Rosetta Genomics to expedite

development and validation of its microRNA-based diagnostic tests both in

the U.S. and worldwide. In addition, ownership of the CLIA-certified lab

will allow Rosetta Genomics to control the commercialization of its

diagnostics, including marketing, sales, and reimbursement strategy. As

previously disclosed, the first three of Rosetta Genomics' microRNA-based

tests expected to enter development and validation at Parkway's facilities

this year:






    - Differentiating squamous from non-squamous non-small cell

      lung cancer- This test is designed to differentiate squamous from

      non-squamous non-small cell lung cancer (NSCLC) using a single

      microRNA. The ability of physicians to accurately differentiate

      squamous from non-squamous NSCLC is an important treatment guide.

      Certain angiogenesis inhibitors for non-squamous NSCLC include a

      black-box warning about substantially higher rates of severe or fatal

      hemorrhage among patients with squamous NSCLC histology compared with

      non-squamous NSCLC. In addition, several other targeted drugs for NSCLC

      currently under development may require this sensitive differentiation.



    - Differentiating mesothelioma from adenocarcinoma - This

      differentiation is critical for optimal therapy, but is often difficult

      to perform. Currently, there is no objective, standardized test to aid

      pathologists in differentiating between the many possible tumors in

      the lung and pleura. Based on several microRNA biomarkers, this test

      is designed to separate mesothelioma from adenocarcinoma tumors

      including lung adenocarcinoma and metastases to the lung or to the

      pleura.



    - Identifying origin of metastases (CUP) - In 3%-5% of all new

      cancer patients, clinicians cannot identify the origin of a patients'

      tumor. This information is crucial for determining treatment type. As

      demonstrated in a paper published by Rosetta Genomics and

      collaborators in the April issue of Nature Biotechnology, Rosetta

      Genomics has developed a panel of microRNA biomarkers potentially able

      to identify approximately thirty cancer types. This test is designed

      to assist clinicians to accurately identify the origin of tumors.



    In addition, the company expects the following three tests to enter

development during 2009-2010: response prediction to ovarian cancer

treatment, predicting risk of gastric cancer recurrence, and

differentiation of small cell from non-small cell lung cancer.

    About MicroRNA



    MicroRNAs (miRNAs) are recently discovered, naturally occurring, small

RNAs that act as master regulators and have the potential to form the basis

for a new class of diagnostics and therapeutics. Since many diseases are

caused by the abnormal activity of proteins, the ability to selectively

regulate protein activity through microRNAs could provide the means to

treat a wide range of human diseases. In addition, microRNAs have been

shown to have different expression in various pathological conditions. As a

result, these differences may provide for a novel diagnostic strategy for

many diseases.



    About Rosetta Genomics



    Rosetta Genomics (Nasdaq: ROSG) is a leader in the field of microRNA.

Founded in 2000, the company's integrative research platform combining

bioinformatics and state-of-the-art laboratory processes has led to the

discovery of hundreds of biologically validated novel human microRNAs.

Building on its strong IP position and proprietary platform technologies,

Rosetta Genomics is working on the application of these technologies in the

development of a full range of microRNA-based diagnostic and therapeutic

tools, focusing primarily on cancer and various women's health indications.



    Forward-Looking Statement Disclaimer



    Various statements in this release concerning Rosetta's future

expectations, plans and prospects, including without limitation, statements

relating to the completion of the acquisition of Parkway by Rosetta and the

expected impact of the acquisition will have on the commercialization of

Rosetta's microRNA-based diagnostics, Parkway's expected revenues and

operating income for 2008, the role of microRNAs in human physiology and

disease, the potential of microRNAs in the diagnosis and treatment of

disease and the expected timing of the development and commercialization of

diagnostic tests using our microRNA technology constitute forward-looking

statements for the purposes of the safe harbor provisions under The Private

Securities Litigation Reform Act of 1995. Actual results may differ

materially from those indicated by these forward-looking statements as a

result of various important factors, including risks related to: Rosetta's

approach to discover microRNA technology and to work on the application of

this technology in the development of novel diagnostics and therapeutic

tools, which is unproven and may never lead to marketable products or

services; Rosetta's ability to fund and the results of further pre-clinical

and clinical trials; Rosetta's ability to obtain, maintain and protect the

intellectual property utilized by Rosetta's products; Rosetta's ability to

enforce its patents against infringers and to defend its patent portfolio

against challenges from third parties; Rosetta's ability to obtain

additional funding to support its business activities; Rosetta's dependence

on third parties for development, manufacture, marketing, sales, and

distribution of products; Rosetta's ability to successfully develop its

candidate tools, products and services, all of which are in early stages of

development; Rosetta's ability to obtain regulatory clearances or approvals

that may be required for its products and services; Rosetta's ability to

obtain coverage and adequate payment from health insurers for the products

and services comprising Rosetta's technology; competition from others using

technology similar to Rosetta's and others developing products for similar

uses; Rosetta's dependence on collaborators; and Rosetta's short operating

history; as well as those risks more fully discussed in the "Risk Factors"

section of Rosetta's Annual Report on Form 20-F for the year ended December

31, 2007, as filed with the Securities and Exchange Commission. In

addition, any forward-looking statements represent Rosetta's views only as

of the date of this release and should not be relied upon as representing

its views as of any subsequent date. Rosetta does not assume any obligation

to update any forward-looking statements unless required by law.






    Contact:



    Media

    Rachel Spielman

    T: +1-212-583-2714

    E: [email protected]



    Investors

    Ron Kamienchick

    T: +1-646-509-1893

    E: [email protected]