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VaxGen Stockholder Vote Insufficient to Approve Merger with OXiGENE
Date:2/4/2010

sary for approval," said James P. Panek, VaxGen President. "We achieved substantial support for the merger from our stockholders, with approximately 58% of the shares voted in favor of the merger, representing 40% of the Company's total outstanding shares. However, more than 31% of the outstanding shares were not voted. We believe that with additional time, there was a reasonable likelihood that we could have achieved the necessary vote. We are disappointed that the OXiGENE board was unwilling to consent to an adjournment of our meeting to solicit these un-voted shares."

The VaxGen Board of Directors intends to immediately assess the Company's strategic alternatives.

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. The facility is contained within leased premises. 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 the Board of Directors' plans to assess strategic alternatives. 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, 2008. Readers are cautioned not to place undue reliance
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SOURCE VaxGen, Inc.
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