Copyright © 2000,
Viragen, Inc.

Press Release - June 13, 2000

NASA AND VIRAGEN SIGN
SPACE ACT AGREEMENT

FOR IMMEDIATE RELEASE

INVESTOR RELATIONS CONTACT:	CORPORATE CONTACT:
Communications Group	Mr. Mel Rothberg
Contact: Robert Cadogan	Executive Vice-President
Phone: (561)-392-2300; Fax (561) 394-6315	Phone: (954) 233-8746; Fax: (954) 233-1414
E-mail:  bobc@commgroup.org	E-mail:  mrothberg@viragen.com

Tuesday, June 13, 2000

NASA AND VIRAGEN SIGN SPACE ACT AGREEMENT

PLANTATION, FLORIDA and HOUSTON, ˆ June 13, 2000 ˆ VIRAGEN, INC. (AMEX: „VRA‰) and NASA‚s LYNDON B. JOHNSON SPACE CENTER („JSC‰) jointly announced today that they have entered into a Space Act Agreement to determine the utility of NASA‚s bioreactor technology in VRA‚s proprietary production technology.

Experiments executed by NASA‚s astronauts on shuttle flights and on the space station itself have demonstrated that outer space appears to be a much more friendly environment for delicate human cells.  Consequently, NASA designed and built a new generation of bioreactors on earth, which mimic outer space‚s weightlessness.  In order to produce interferon from delicate human white blood cells (leukocytes), a virus or other stimulator is exposed to living leukocytes in a vessel called a bioreactor.  Then the interferon is separated from other proteins through VRA‚s proprietary purification process.  The first step in the project will determine if NASA‚s bioreactors will cause these cells to produce more natural interferon.  Any increase in interferon yield would serve to reduce VRA‚s production costs as well as demonstrating the applicability of the bioreactor designed for other biopharmaceutical drugs.

Mr. Henry L. Davis, Director, JSC‚s Technology Transfer & Commercialization Office noted „The relationship between JSC and Viragen is a prime example of how a U.S. biotechnology company could utilize and benefit from cutting edge technologies developed by NASA in its space program.  The application of micro-gravity research to Viragen‚s production technology could potentially lead to the development of novel and cost effective therapeutic agents for life-threatening human disorders such as cancer, hepatitis and infectious diseases.  This partnership could herald a new era of participation and cooperation with the biotechnology industry and result in the accelerated development of more efficient and cost-effective pharmaceuticals.  This is consistent with the fundamental purpose of space exploration, that is to ultimately benefit mankind on this planet.‰

Mr. Davis explained, „In the legislation that created the Agency, NASA is mandated to disseminate the greatest amount of information possible resulting from its R&D efforts for the benefit of all Americans.  Access to cutting-edge technologies available for commercialization is provided through a variety of mechanisms including Space Act Agreements.  Partnerships with the private sector not only accomplish NASA‚s technology transfer mission but also benefits the Agency by providing access to „real world‰ needs and expertise that can help NASA move toward its mission of space exploration and colonization.  This partnership with Viragen will enable NASA JSC to understand how their technology can be used in the production of pharmaceutical products both on earth and in future space habitats.‰

Dr. Dennis R. Morrison, JSC‚s Senior Biotechnology Project Scientist stated, „NASA‚s Rotating Wall Vessel Bioreactors (RWV) imitate some micro-gravity conditions under which cultured human white blood cells experience significantly reduced shear.  Our previous space flight experiments have shown that Interferon production is enhanced in true micro-gravity.  We have evidence that certain biochemical signals within the cells are changed in micro-gravity and in our low-shear bioreactors. The objective of the collaborative experiments will be to determine if the enhanced production can be achieved on Earth using our novel bioreactors in combination with proprietary Interferon inducers.  This effort will enable us to not only determine if this environment increases yield but also if novel interferon subtypes are produced in addition to those already contained in VRA‚s leukocyte-derived natural interferon alpha, Omniferon ˙.  We will also determine whether there is an increase in the drug‚s potency which could result in a reduction of the required dosage and the frequency of injection for a patient‚s treatment.  This collaboration also could potentially lead to applications useful in the production of other products from human immune cells, s.a. monoclonal antibodies.‰

VRA‚s Chairman and CEO, Mr. Gerald Smith, stated, „VRA‚s search for ways to further reduce the cost of drug production reflects its desire to do everything it can to make the price of treatment more affordable to patients and the institutions that serve them.  This is the first step of an important collaboration designed to determine the practical benefits to be derived from space age bioreactor technology.‰

Viragen worked with NASA‚s Southeast Regional Technology Center, headquartered at the University of Florida, to facilitate the relationship with JSC.

Viragen, Inc. is engaged in the research, development and manufacture of immunomodulatory therapeutic products, including natural human interferon and human monoclonal antibodies for the treatment of various diseases and immune disorders.  Produced in its Scottish facility, VRA‚s lead drug, Omniferon, is currently in Phase II clinical trials in Europe for hepatitis C, a disease estimated to afflict tens of millions worldwide.  VRA has a collaborative agreement with the Common Services Agency of the United Kingdom; preferential access to white blood cells collected by the German Red Cross and America‚s Blood Centers; and a white blood cell supply agreement with the American Red Cross.  Viragen is also collaborating with Memorial Sloan-Kettering Cancer Center for the development of a human monoclonal antibody for the treatment of melanoma and other cancers.

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The foregoing press release contains forward-looking statements that can be identified by terminology such as „expects‰, „potential‰, „suggests‰, „may‰, „will‰, or similar expressions.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may  cause the actual results to be materially different from any future results, performance, or achievements expressed or implied by such statements.  In particular, management‚s expectations regarding future research development results could be affected, by among other things, uncertainties relating to clinical trials and product development; unexpected regulatory delays or government regulation generally; the Company‚s ability to obtain or maintain patent and other proprietary intellectual property protection; and competition in general.

Media Contact: Robert Cadogan, Communications Group, Phone (561)-392-2300; Fax (561) 394-6315; e-mail: bobc@commgroup.org

Copyright © 2000 Viragen, Inc.