October 24, 2001 — BRISBANE, CA — VaxGen, Inc. and the city of Incheon, South Korea, recently announced the signing of an agreement that provides VaxGen land on which to construct a facility to manufacture the company’s AIDS vaccine.

The agreement is the first step in VaxGen’s program to create capacity for global supplies of the vaccine, AIDSVAX, if it proves successful in Phase III trials and gains regulatory approval.

The agreement provides VaxGen with approximately 26 acres free of charge for 10 years in Songdo Industrial Park, which is being developed by Incheon Metropolitan City. The site, which is near the new Seoul/Incheon International Airport, includes room for pharmaceutical manufacturing facilities, administrative offices and a research and development center. Incheon is located about an hour from Seoul on the country’s west coast.

“In view of the advanced stage of our pivotal trials, VaxGen has placed a priority on establishing manufacturing capacity,” said Lance K. Gordon, Ph.D., VaxGen’s chief executive officer. “We believe having a large-scale manufacturing facility under our control would provide a consistent supply of AIDSVAX to help address worldwide demand.”

VaxGen is working with South Korean partners to raise financing in South Korea for the project. The partners are not part of the city of Incheon.

VaxGen develops vaccines for the prevention of HIV/AIDS.