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VAXGEN AIDS VACCINE: GOOD NEWS

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Date: 12 Dec 2007
Time: 09:34:48

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Date: 27 Jun 2001
Time: 14:19:58

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VaxGen's AIDS Vaccine for Developing World Shows Unexpected Activity

Results May Yield Vaccine With Broader Protection

BRISBANE, Calif., June 26 -- VaxGen, Inc. (Nasdaq: VXGN) presented laboratory data today at an international scientific conference indicating that antibodies to HIV subtype C (HIV-C) have an unexpected ability to bind to significant regions of another HIV subtype. The findings indicate that a vaccine that induces HIV-C antibodies may be effective at preventing infection not only by HIV-C but by other subtypes as well. HIV-C causes half of the world's HIV infections and is the predominant subtype in southern Africa, India and China.

VaxGen also described a new trivalent formulation of its vaccine, AIDSVAX, which is designed to prevent infection by three of the world's five major HIV subtypes, including HIV-C. The development of this formulation, which has yet to be tested in human clinical trials, furthers the company's goal of tailoring vaccines to target specific HIV subtypes and strains in various geographic regions.

"We found that antibodies to HIV-C bind well to a functionally significant site on the C subtype and to the same site on the B subtype," said Phillip Berman, Ph.D., VaxGen's senior vice president of research and development. "In contrast, antibodies to HIV-B did not bind nearly as well to the same region on HIV-C. These findings are from animal studies and need to be confirmed in humans, but they suggest that a vaccine directed against HIV-C may be able to protect against a broader range of different HIV subtypes than other vaccine formulations."

The functionally significant site, known as the V3 loop, is a critical feature of HIV because it is one of several keys that unlock the door to human cells and allow the virus to enter and replicate. If antibodies bind to the loop effectively enough, the infection process should be halted.

Dr. Berman presented these findings today at the sixth European Conference on Experimental AIDS Research (ECEAR) in Edinburgh, Scotland. Dr. Berman was the lead author of the findings; other VaxGen scientists co-authored the study. Dr. Berman also described how VaxGen has developed its first trivalent vaccine by combining antigens from the B, C and E HIV subtypes. "These findings are encouraging because they further demonstrate that it is possible to mix envelope proteins from different strains of viruses to create multivalent vaccines that may be effective against a variety of HIV subtypes," Dr. Berman said. VaxGen is developing vaccines that induce antibodies that bind to the surface of HIV with the goal of preventing the virus from entering human cells.

If HIV can't enter human cells, it dies off in the bloodstream and cannot cause AIDS. Antibodies are the only immunologic response known to prevent HIV infection in animals, including chimpanzees, which are thought to be the source of the virus.

VaxGen is the only company with preventive HIV vaccines in Phase III trials, the final stage before regulatory approval can be sought. VaxGen is conducting two trials, one in North America and Europe and another in Thailand, with a total of 7,900 volunteers. The trials are designed to determine how well AIDSVAX prevents HIV infection.

VaxGen was co-founded by Donald P. Francis, M.D., D.Sc., and Robert Nowinski, Ph.D. Dr. Francis leads the development of the vaccine, and Dr. Nowinski, who retired last year, was the company's entrepreneur, financing the company at its origin and key early stages.

Dr. Berman invented AIDSVAX.

VaxGen is located in Brisbane, Calif.

For more information, please visit the company's web site at www.vaxgen.com.

NOTE: AIDSVAX® is a registered trademark of VaxGen.

Note: This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to known and unknown risks, uncertainties or other factors that may cause VaxGen's actual results to be materially different from historical results, expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to, uncertainties related to the progress, costs and results of the Company's Phase III clinical trials, the progress of other internal research and development projects, the establishment of collaborative arrangements with governmental agencies, the receipt of research grants and the timing of certain expenses. Even if VaxGen is able to demonstrate efficacy of AIDSVAX in clinical trials, VaxGen may not be able to obtain regulatory clearance to market AIDSVAX. The findings reported in this press release may not be relevant for determining the protective effect of AIDSVAX against HIV, may not help VaxGen develop current or planned formulations for preventive vaccines and may not be repeatable in human trials. Reference should be made to VaxGen's Annual Report on Form 10-K, filed with the Securities and Exchange Commission, for a more detailed description of such factors discussed in the "Factors Affecting Future Results" and "Business" sections. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date of this release. VaxGen undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date of this release or to reflect the occurrence of anticipated events.

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