Collaboration with Viragen Inc. and Roslin Institute

Oxford, UK – 21 June 2004: Oxford BioMedica (LSE OXB), the leading gene therapy company, today announced that a scientific article reporting on its collaboration with Viragen Inc (AMEX: VRA) in the field of Avian Transgenic Biomanufacturing is available as an advance online publication of EMBO reports (European Molecular Biology Association, McGrew et al, VOL 5, NO 7).  The article, titled “Efficient production of germline transgenic chickens using lentiviral vectors”, reports data that demonstrate that Oxford BioMedica’s lentiviral vectors can be used to generate transgenic lines with an efficiency of the order of 10 to 100-fold higher than any previously published method.

In collaboration with Roslin Institute and Oxford Biomedica PLC, Viragen aims to develop this technology for the efficient, large-scale and cost-effective manufacturing of pharmaceutical protein-based drugs in the eggs laid by flocks of transgenic chickens.

Project Leader, Roslin Institute’s Dr. Helen Sang, commented, “Our results to date are very encouraging.  The efficiency is such that transgenic lines of chickens can be established with ease, and studies measuring expression of the transgene suggest that predictable levels of expression will be obtained.  In order to achieve our goal of producing therapeutic proteins in hens’ eggs, we must accomplish tissue specific expression of the transgene in the oviduct – a goal we are diligently working toward.”

Commenting on the results, Oxford BioMedica’s Chief Executive Officer, Prof. Alan Kingsman said “This is an interesting project and we are delighted to see the LentiVectors having a significant impact in yet another area of commercial biology”.

The abstract of the article is available at:

http://www.nature.com/cgi-taf/DynaPage.taf?file=/embor/journal/vaop/ncurrent/abs/7400171.html

-Ends-

Notes to editors

1. Oxford BioMedica

Oxford BioMedica (LSE: OXB) is a biopharmaceutical company specialising in the development of novel gene-based therapeutics with a focus on the areas of oncology and neurotherapy. The Company was established in 1995 as a spin out from Oxford University, and is listed on the London Stock Exchange.

In addition to its technical expertise in gene delivery, Oxford BioMedica has in-house clinical, regulatory and manufacturing know-how. The development pipeline includes two novel anti-cancer products in clinical trials; and two neurotherapy products in advanced preclinical development for Parkinson’s disease and retinopathy. The Company is underpinned by an extensive preclinical and research portfolio and about 70 patent families, which represents one of the broadest patent estates in the field.

The Company has a staff of approx. 65 split between its main facilities in Oxford and its wholly owned subsidiary, BioMedica Inc, in San Diego, California. Oxford BioMedica has corporate collaborations with Wyeth, Intervet, Merck & Co, Amersham and Kiadis.

Further information is available at http://www.oxfordbiomedica.co.uk

2.  Avian Transgenic Technology

Viragen holds the worldwide exclusive license to commercialize Avian Transgenic Technology as granted by Roslin Institute (Scotland).  The project is designed to develop the common chicken into a pharmaceutical bioreactor, one that can meet the growing need for protein-based human therapeutics.  Based on the creation of lines of transgenic hens which have been engineered to produce the target protein in their eggs, this technology is being developed as a cost-effective and efficient alternative to standard biomanufacturing techniques, having many apparent advantages in ease of scale-up, lower costs of production and quality of product produced.  The proportion of protein drugs, including monoclonal antibodies, under development is forecast to be expanding rapidly and manufacturing constraints, including lack of adequate facilities, have been recognized.

3. LentiVector^® technology

LentiVector is a gene delivery vector that is based on lentiviruses. The system contains only the few viral components that are required for efficient gene delivery. Oxford BioMedica has shown that minimal lentiviral vectors are able to deliver genes to a wide range of dividing and non-dividing cells, including neurones in the brain. Oxford BioMedica has three issued US patents for its LentiVector technology, and works with vectors based on HIV and Equine Infectious Anaemia Virus (EIAV), a horse virus that is not linked to any disease in humans. The EIAV system is Oxford BioMedica’s system of choice because of its superior safety profile.

The Company has established a neurotherapy pipeline of product candidates based on its LentiVector technology, which includes ProSavin^® for Parkinson’s disease, RetinoStat^® for retinopathy, MoNudin^® for motor neuron disease and Innurex^® for nerve repair.

4. Viragen, Inc.

Viragen is a biotechnology company specializing in the research, development and commercialization of natural and recombinant protein-based drugs designed to treat a broad range of viral and malignant diseases.  These protein-based drugs include natural human alpha interferon, monoclonal antibodies and a peptide drug.  Viragen’s strategy also includes the development of Avian Transgenic Technology as a biomanufacturing platform for the large-scale, cost-effective production of therapeutic proteins.

Viragen is publicly traded on the American Stock Exchange (VRA).  Viragen’s majority owned subsidiary, Viragen International, Inc., is publicly traded on the Over-The-Counter Bulletin Board (VGNI).  Viragen’s key partners and licensors include: Roslin Institute, Memorial Sloan-Kettering Cancer Center, Cancer Research UK, University of Nottingham (U.K.), University of Miami, America’s Blood Centers and the German Red Cross.

Further information is available at http://www.Viragen.com