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VaxGen Restructures Following Termination of Proposed Merger
Date:4/9/2008

e obligations; and importantly, reconfigure our board to deal with the future course of the Company. VaxGen is speaking with a number of its largest stockholders in order to get their input, including suggestions for potential new board members, and will be completing this reconfiguration process as expeditiously as possible.

About VaxGen

VaxGen is a biopharmaceutical company based in South San Francisco, California. The company owns a state-of-the-art biopharmaceutical manufacturing facility with a 1,000-liter bioreactor that can be used to make cell culture or microbial biologic products. For more information, please visit the company's web site at http://www.vaxgen.com.

Note: This press release contains "forward-looking statements" within the meaning of the federal securities laws, including statements regarding restructuring of VaxGen, the reconfiguration of its Board of Directors and its continuing efforts to divest assets. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those anticipated. Additional information concerning these and other risk factors is contained in VaxGen's Annual Report on Form 10-K for the year ended December 31, 2007. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this release. VaxGen undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date of this release except as required by law.


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