Cancer Genetics Receives Bankruptcy Court Approval to Purchase Los Angeles-Based Response Genetics, Inc.

Cancer Genetics, Inc. (Nasdaq: CGIX) ("CGI" or "The Company"), an emerging leader in DNA-based cancer diagnostics, announced today that it received approval from the United States bankruptcy court in Delaware to purchase substantially all of the assets of Los Angeles-based Response Genetics, Inc. ("RGI"). In connection with the transaction, CGI also agreed to assume certain of RGI's liabilities. The sale is subject to certain customary closing conditions and is anticipated to close by October 9, 2015.The acquisition, if consummated, is expected to contribute an additional $10 to $12 million to CGI in revenue over the next 12 months and to expand CGI's solid tumor molecular diagnostics offering to include lung cancer, colorectal cancer and melanoma tests that help determine a patient's response to cancer therapy. Once integrated, the combined entity will have expertise in solid and hematological cancers, a national geographic footprint, and the ability to provide services to large-scale clients including biotechnology/pharmaceutical companies and clinicians.The lease for RGI's 27,000 sq. ft. CLIA-certified and CAP-accredited laboratory, located in Los Angeles, California is being assumed by CGI in the transaction. Cancer Genetics plans to develop RGI's Los Angeles facility into a center of excellence in solid tumors, with a particular emphasis on lung cancer once the purchase is finalized.In 2014, RGI was awarded the multi-year ALCHEMIST Trial contract, by the National Cancer Institute, focused on biomarker-based treatment for lung cancer. Cancer Genetics, as part of the transaction, will be taking over the ALCHEMIST Trial contract.As previously announced, the purchase price is approximately $14 million, which will include $7 million in cash and 788,584 shares of CGI common stock.