VaxGen Common Stock Expected to Qualify for Quotation on OTC Bull...( Qualification will satisfy closi...)

Qualification will satisfy closing condition to merger with Raven

biotechnologies

SOUTH SAN FRANCISCO, Calif., Dec. 20 /PRNewswire-FirstCall/ -- VaxGen Inc. (Pink Sheets: VXGN), a biopharmaceutical company, announced today that it has, along with Punk Ziegel and Company, begun the process of qualifying its shares of common stock for quotation on the OTC Bulletin Board, and is expected to commence trading by the end of the year under the symbol VXGN. Further, VaxGen and Raven biotechnologies, inc. have amended the merger agreement between the two companies to clarify that VaxGen's qualification on the OTC Bulletin Board satisfies the closing condition to the proposed merger between VaxGen and Raven requiring that VaxGen be listed on an approved trading market.

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Commenting, James P. Panek, VaxGen's CEO, said "In addition to the benefits of increased liquidity, we are very pleased that the qualification on the OTC Bulletin Board eliminates a source of uncertainty related to our proposed merger with Raven biotechnologies. In talking with both current and prospective stockholders, it became clear that concern over this closing condition was creating unnecessary uncertainty and was distracting from the merits of the deal. We believe that the proposed merger with Raven represents an excellent opportunity for the Company's stockholders."

Matthew Pfeffer, VaxGen's Chief Financial Officer added: "It remains our goal to list on NASDAQ or another national exchange at the appropriate time, and we plan to proceed with a 5:1 reverse split of our common stock, subject to stockholder and board approval, to facilitate such a listing."

The Company is seeking approval to undertake the planned reverse split at its annual meeting of stockholders scheduled for December 2
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