MediGene Issues Licenses to Virionics for the Use of the CVLP Tumor Vaccine

- MediGene receives a share in Virionics Corporation of up to 15%, as well as royalties on product sales and future sublicense milestone payments

- Virionics undertakes to resume clinical development of the CVLP tumor vaccine, and to initiate a phase II trial

Martinsried/Munich – San Diego, April 4, 2006. The German-American biotech company MediGene AG (Frankfurt, TecDAX) has granted a number of licenses to the US Virionics Corporation for the use of the CVLP vaccine program. CVLPs (chimeric virus-like particles) are based on human papilloma viruses (HPV). The drug may be applied as both a therapeutic against precursors of cervical cancer, and as a prophylactic vaccine against HPV. MediGene’s patents and know-how in the development of these tumor vaccines are major subjects of the contract. Virionics commits itself to initiate a clinical phase II trial of the CVLPs. In return, MediGene successively receives a share of up to 15% in Virionics, plus a participation in sales and future milestone payments in case sublicenses are granted to third parties. Moreover, MediGene holds pan-European marketing rights to the drugs developed.

MediGene had tested the CVLP tumor vaccine in cooperation with Schering AG in an introductory phase I/II trial which showed positive data regarding tolerability, immunologic activity, and first efficacy trends. Upon termination of the cooperation with Schering in 2003, MediGene discontinued the project.

Dr. Peter Heinrich, Chief Executive Officer of MediGene AG, comments: "Virionics specializes in the development of a novel antigen platform for the prevention or therapy of cancer, as well as inflammatory and infectious diseases. The comprehensive expertise in the field of vaccine development, as well as the senior management’s many years of pharma experience make Virionics the appropriate partner for the continuation of our CVLP program. We are delighted that we have once again succeeded in exploiting values from discontinued development projects"

In December 2005, MediGene had already issued a non-exclusive license to the Glaxo Group covering patents that had emerged from MediGene’s program for the development of a therapeutic vaccine.

This press release contains forward-looking statements that involve risks and uncertainties. The forward-looking statements contained herein represent the judgment of MediGene as of the date of this release. These forward-looking statements are no guarantees for future performance, and the forward-looking events discussed in this press release may not occur. MediGene disclaims any intent or obligation to update any of these forward-looking statements. MediGeneTM is a trademark of MediGene AG.

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MediGene AG

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