VaxGen Reports Financial Update(vices - ...)

Total revenues 5,011 14,836

Operating expenses:

Research and development 19,653 49,001

General and administrative 20,437 27,683

Impairment of property and equipment 10,681 -

Restructuring 5,374 -

Total operating expenses 56,145 76,684

Loss from operations (51,134) (61,848)

Other income (expense):

Interest expense (2,447) (2,470)

Interest income and other 4,681 2,239

Valuation adjustments 4,720 (5,295)

Equity in loss of affiliate - (5,290)

Gain on foreign currency transactions - 7,454

Gain on sale of investment in affiliate - 104,012

Total other income, net 6,954 100,650

Income (loss) before taxes (44,180) 38,802

Income taxes - 1,210

Net income (loss $(44,180) $37,592

Net income (loss) per share, basic and diluted $(1.33) $1.15

Weighted average shares used in computing basic

and diluted net income(loss) per share:

Basic 33,107 32,723

Diluted 33,107 32,797

CONSOLIDATED BALANCE SHEET

(in thousands, except share and per share data)

(Unaudited)

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