Rosetta Announces $1.75 Million Debt Financing and Potential $1.25 Million Licensing Transaction

Rosetta Genomics, Ltd.

today announced it has sold an aggregate of $1.75 million in senior secured debentures in a private placement transaction with an accredited investor, and Rosetta has also agreed to negotiate in good faith a definitive license agreement with a designee of the holders of the debentures for an additional $1.25 million. The debentures have a maturity date of January 26, 2013 and accrue interest at a rate of 10% per annum, payable semi-annually. An aggregate of $300,000 in principal amount of the debentures may be converted into Rosetta's ordinary shares at a conversion price of $0.0944 per share. The debentures are secured by a security interest in all current and future assets of Rosetta and any current or future subsidiary.