Viragen Reports that Peptide Agreement Expires

23-May-2005

Viragen, Inc. announced that it has elected not to exercise an exclusive option to license VG104, the IEP 11 peptide, from the University of Miami. The IEP 11 peptide was being researched as a potential cancer therapeutic. In light of Viragen's decision, the option has expired and all development activities relating to VG104 have been discontinued.

Charles A. Rice, Viragen's President & CEO, commented, "We appreciate the collaborative efforts of the University of Miami and their work with us over the past few years, and we wish them well with their ongoing research. No further funding will be committed to this project, and we will direct our resources to our priority projects. Moving forward, as we continue in various stages of negotiations with potential partners, we expect to implement additional changes to rebuild Viragen."

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