BIOQUAL Announces Award of a Five Year Research Support Contract for $13.7M.

Business Editors/Health & Medical Writers

ROCKVILLE, Md.--(BUSINESS WIRE)--Oct. 31, 2001

On October 31, 2001, BIOQUAL, Inc. (OTC:BIOQ, Chicago Stock Exchange:BQI) that the NCI renewed its contract to support cancer researchers at the National Cancer Institute (NCI) of the National Institutes of Health (NIH).

The contract entitled "Facility for Breeding, Housing and Handling Virus Infected Mice" is for a base year and four option years for a total of $13,740,310.

The renewal combines two current contracts with the NCI's Experimental Immunology Branch. Under the new contract BIOQUAL will house up to 17,000 mice and will conduct an extensive breeding and testing program to support approximately thirty-five NCI scientists who are conducting basic immunological research.

Statements herein that are not descriptions of historical facts are forward-looking and subject to risk and uncertainties.

Actual results could differ materially from those currently anticipated due to a number of factors including those set forth in BIOQUAL's Securities and Exchange Commission filings under "Risk Factors", including risks relating to the early stage of products under development; uncertainties relating to clinical trials; dependence on third parties; future capital needs; the ability to continue to extend its government contracts and obtain new contracts; and risks relating to the commercialization, if any, of BIOQUAL's proposed products (such as marketing, safety, regulatory, patent, product liability, supply, competition, and other risks).