Protein Sciences Announces Termination of Deal to Sell to Emergent Bi...( - PSC terminates sale d...)

- PSC terminates sale due to Emergent's breaches

- PSC BLA for FluBlok remains on track with the FDA

- PSC awaiting decision on BARDA contract award

MERIDEN, Conn., July 29 /PRNewswire/ -- Protein Sciences Corporation ("PSC") announced today that the sale of its business under an Asset Purchase Agreement between PSC and Emergent BioSolutions, Inc. (NYSE: EBS) and its affiliate (collectively "Emergent") has been terminated by PSC due to breaches by Emergent. PSC cited multiple breaches by Emergent including disclosure and mischaracterization of PSC's material confidential information obtained from PSC during due diligence and Emergent's failure to fulfill its obligation to provide adequate funding to PSC.

Daniel D. Adams, President and CEO, said, "Emergent's blatant disregard for its contractual commitments is shocking. They continue to try to damage PSC with inappropriate and unauthorized contact to our customers and collaborators and appear to have launched an effort to disrupt the approval process for our BLA for FluBlok(R). Fortunately, we have loyal customers, collaborators and shareholders that remain very supportive of PSC and our management team."

In other developments, PSC announced that the FDA's inspection of PSC's facility and operations in connection with its Biologics License Application (BLA) for FluBlok was completed in mid-July. Manon Cox, PSC's Chief Operating Officer, noted, "We were well prepared for the FDA inspection of our manufacturing facility and are satisfied with the nature of the preliminary comments that we received from the FDA. We remain on track for a decision on our BLA by mid-October, 2008 under the FDA's accelerated approval pathway." PSC also a
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