Tm BIOSCIENCE REPORTS THIRD QUARTER 2002 FINANCIAL RESULTS

TORONTO, ON, November 28, 2002 — Tm Bioscience Corporation (TSX Venture: TMC), a DNA -based diagnostics company developing a suite of genetic tests, announced today its financial and operational results for the third quarter ended September 30,2002.

During the third quarter, Tm Bioscience:
· Completed the validation of its first commercial genetic test product, the Tag-It™ coagulation mutation detection assay;
· Completed construction of a pilot scale manufacturing facility;
· Graduated to Tier 1 status on the TSX Venture Exchange; and
· Secured financing of $4.66 Million (CAD).

The Company also secured a US based reference laboratory to act as clinical validation partner for its P450-2D6 drug metabolization test, which successfully progressed from research to product development in the third quarter. The validation process is expected to begin in the first quarter of 2003, with a product launch date of mid 2003.

During the quarter, MetriGenix of Gaithersburg Maryland, a licensee of the Company’s Tm100 and Tm1000 products, successfully completed validation of Tm100 Universal Array on its “Flow Thru” microarray platform. Metrigenix remains on target to launch the Tm100 Universal Array on this platform by the end of 2002.

“Our business plan continues to progress on schedule, with the key elements we require to commercialize our first series of genetic tests moving into place as planned,” said Greg Hines, President and CEO of Tm Bioscience. “We are very excited about the opportunities for selling our own products in 2003.”

Luminex Corporation has not yet completed commercialization of the Tm100 Universal Array, which will trigger the contractually agreed milestone payment and initiate a royalty stream to the Company. The Company’s management and Luminex continue to work closely to develop a sales and marketing plan that will ensure the commercial success of the Universal Array.

Financial Summary
For the three-month period ended September 30, 2002, Tm Bioscience reported a net loss of $1,370,171 or ($0.01) per share, compared to a net loss of $874,113 or ($0.01) per share, for the corresponding period in 2001. For the nine-month period ended September 30, 2002, the Company reported a net loss of $3,789,189 compared to $1,966,957 for the same period in 2001.

Operating expenses for the three-month period ended September 30, 2002 increased by $315,955 to $1,303,052 from $987,097 for the corresponding period in 2001. Operating expenses for the nine months ended September 30, 2002 were $2,484,512, an increase of $364,423 from $2,120,089 for the nine months ended September 30, 2001.

Total expenses for the three and nine months ended September 30, 2002 increased to $1,391,112 and $3,875,624, respectively, compared to $914,703 and $3,034,792 for the same periods in 2001. This increase reflects the growth in average R&D headcount year-over-year, including resources in product development, quality assurance and pre-manufacturing protocol design.

Working capital at September 30, 2002 was $2,011,127 as compared to $ 2,636,856 at December 31, 2001. On November 12, 2002, the Company announced that it had secured financing of $4,661,400 from the Canadian Medical Discoveries Fund (“CMDF”).

INVESTOR RELATIONS CONTACT:
James Smith
The Equicom Group Inc.
416-815-0700 ext.229

jsmith@equicomgroup.com 

www.tmbioscience.com            www.equicomgroup.com 

Additional Operational Highlights
During the third quarter of 2002, the Company progressed significantly on its cGMP pilot scale manufacturing facility build-out. At September 30, 2002, construction was over 55% complete; on November 6th, the Company took possession of the completed facility.

Over the coming quarter, the Company will outfit the facility with the required material storage and handling equipment. The facility will be operational in time to secure the first quarter availability of the Company’s first in -house manufactured product, the Tag-It™ coagulation mutation detection assay.

The first series of diagnostic products undertaken by the Company’s research and development groups continue to progress.

Notably, the Company:
· Completed the clinical validation of its coagulation test in conjunction with its partner, the Ottawa Health Research Institute. The coagulation test retains its planned first quarter 2003 product launch date;
· Completed research on its P450-2D6 drug metabolization test, which was successfully transferred to product development in the third quarter. The Company also secured a US based reference laboratory to act as clinical validation partner for this test. The validation process is expected to begin in the first quarter of 2003, with a product launch date of mid 2003; and
· Continued its research activities surrounding the creation of a Cystic Fibrosis test, and expects that this test will progress to product development in the first quarter of 2003.

About Tm Bioscience – Putting the Human Genome to Work™
Tm Bioscience is a DNA-based diagnostics company developing a suite of genetic tests. Tm Bioscience’s product pipeline includes tests for genetic mutations related to hematology, toxicology, cystic fibrosis and other debilitating genetic disorders. The lead product from Tm Bioscience is the Tm100 Universal Array, a microarray “operating system” capable of combining any set of 100 single DNA tests and performing them simultaneously in a single reaction. The Tm100 universal micro array is accurate, fast, flexible, economical and suitable as an industry standard. Tm Bioscience is located in Toronto, Ontario. Additional information about Tm Bioscience can be found at www.tmbioscience.com. 

CONTACT:
Alan Coley James Smith
Vice President, Investor Relations Investor Inquiries
416-593-4323 ext.237 416-815-0700 ext.229
416-593-1066 fax 416-815-0080 fax

acoley@tmbioscience.com      jsmith@equicomgroup.com 

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