License Agreement

Oxford Biomedica PLC
05 July 2004


FOR IMMEDIATE RELEASE                                              5 JULY 2004


              OXFORD BIOMEDICA LICENSES LENTIVECTOR TECHNOLOGY TO
                                        
                  VIRAGEN FOR AVIAN TRANSGENICS BIOMANUFACTURING


Oxford, UK - 5 July 2004: Oxford BioMedica (LSE: OXB) and Viragen, Inc. (AMEX:
VRA) today announced a license agreement for Oxford BioMedica's LentiVector gene
delivery technology. The agreement provides Viragen with worldwide exclusive
rights to utilize the proprietary LentiVector technology in its collaboration
with Roslin Institute (Scotland) to develop Avian Transgenic Technology as a
novel platform for the efficient and economical manufacturing of therapeutic
proteins in chicken eggs. Under the agreement, Oxford BioMedica receives an
upfront license fee and annual maintenance payments. In addition, Oxford
BioMedica will receive milestone payments on the achievement of technical goals
by Viragen and royalties on commercialisation of the Avian Transgenic
Technology. Further financial details were not disclosed.


Viragen and Roslin Institute have conducted preliminary studies evaluating
Oxford BioMedica's LentiVector technology which have yielded promising results,
demonstrating the ability to generate transgenic generations with an efficiency
on the order of 10 to 100-fold higher than any previously published methods.


'Manufacturing protein-based drugs through an avian transgenic expression system
should offer certain advantages to traditional production systems - likely in
terms of speed, efficiency and cost,' stated Viragen's CEO, Mr. Charles A. Rice.
'As indicated in a recent press release, results to date have been exceptional
and warrant our licensing the exclusive rights to the LentiVector system for our
Avian Transgenics Program. We are hopeful that continuing progress will confirm
the commercial significance of this approach.'


Oxford BioMedica's CEO, Professor Alan Kingsman, added, 'Viragen's Avian
Transgenics Program has made substantial progress over the past two years and we
are delighted that Oxford BioMedica's LentiVector technology has contributed to
this success. We look forward to further developments following the signing of
this agreement.'


-Ends-




For further information, please contact:
Oxford BioMedica plc:
------------------------
Professor Alan Kingsman, Chief Executive               Tel: [phone]

Viragen, Inc:
---------------
Douglas Calder, Director of Communications                 Tel: [phone]
City/Financial Enquiries:
---------------------------
Lisa Baderoon/ Mark Court: Buchanan Communications     Tel: [phone]
Scientific/Trade Press Enquiries:
-----------------------------------
Sue Charles, Katja Stout: Northbank Communications     Tel: [phone]

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. LentiVector(R) technology

Oxford BioMedica's LentiVector gene delivery technology is arguably the most
potent system currently available for treating diseases of the central nervous
system, particularly chronic neurodegenerative disorders. 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.


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


The technology has broader applications for genetic modification ranging from
drug discovery and target validation to the creation of transgenic animals. In
Viragen's Avian Transgenic Technology, the LentiVector system is used to create
lines of transgenic hens, which will be 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.


3. Viragen, Inc.

Viragen is a biotechnology company specializing in the research, development and
commercialisation 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.


For an Avian Transgenic Biomanufacturing Technology Profile, please visit: http:
//www.Viragen.com/aviantechprofile.pdf







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