Calypte Biomedical Signs Exclusive Agreement to Distribute Urine-based HIV Testing Products in Brazil.

Business Editors & Health/Medical Writers

ALAMEDA, Calif.--(BUSINESS WIRE)--May 11, 2000

Calypte Biomedical Corporation (Nasdaq:CALY) today announced that it has entered into an exclusive distribution agreement with Biobras S.A. (Biobras) of Brazil to distribute its HIV urine-based testing products throughout Brazil.

Biobras is a privately held company headquartered in Belo Horizonte, a city located directly north of Rio de Janeiro. Employing 500 people in four divisions, it is the fourth largest producer of insulin worldwide and one of the leading Brazilian manufacturers and distributors of reagents for clinical, food, and human identification laboratories. Biobras is very active in pharmaceutical and diagnostic markets, with annual sales of approximately $30 million.

Nancy Katz, president, chief operating officer and chief financial officer of Calypte Biomedical, said, "We believe that the favorable characteristics that distinguish urine-based HIV testing are particularly well-suited for countries outside the U.S., like Brazil, that are seeking ways to encourage more people to be tested. Urine-based testing has proven to be safer, cheaper and easier to administer than traditional testing methods, and we believe that the Brazilian population will benefit from the introduction of alternative testing procedures.

"A critical part of the process, of course, is to identify the right distributor, one with sufficient scope and strong, national relationships, so that our test will get into the appropriate hands. We entered into many conversations in Brazil with a variety of companies, and Biobras suited our needs better than any other distributor. We look forward to working with Biobras and expect the relationship to be mutually beneficial."

Ms. Katz added, "This agreement marks a significant milestone in Calypte's development. It is the first agreement Calypte has signed with a major international distributor and we are hopeful other countries will recognize the benefits our testing method can bring to underserved populations like Brazil's."

The announcement follows an April meeting held in Brasilia, which was attended by Brazilian health and regulatory officials, and featured a presentation by Professor Luc Montagnier, discoverer of the virus that causes AIDS. In that meeting, Professor Montagnier described his vision of the HIV epidemic and his view of the world's diagnostic and therapeutic priorities.

During the meeting, Professor Montagnier said, "Data from my own clinics, and others around the world, clearly demonstrate that the antiretroviral therapies available today can have a dramatic and favorable impact on the management of HIV disease. Our most urgent task is to adapt such therapies in order to make them accessible to all patients in developing countries. Therefore, it is important to conduct new epidemiological studies by HIV testing."

Professor Montagnier continued, "I believe that several unique aspects of urine testing, including its safety, painless sample collection and sample stability, make it a desirable -- if not preferable -- option for our expanded testing efforts."

Humberto Decerega Mendez, Director of the Diagnostics Division of Biobras, noted that the Calypte test will be the first test of its type available in Brazil. "We are moving forward with Brazilian registration of the Calypte products as quickly as possible. Brazil, with its large population and vast geography, poses logistical problems in HIV testing that we believe are perfectly addressed by the Calypte urine products. The simple and painless sampling method used by the Calypte products also makes them ideally suited for large scale testing of special groups, such as pregnant women and drug abusers. The Calypte products will be sold nationwide through a distribution network already established by Biobras, as well as to special screening programs operated by the federal government in regions where centralized laboratories do not exist."

Recent statistics from Brazilian health officials point to a significant HIV prevalence in Brazil, with up to 650,000 people already infected. Brazil accounts for roughly half of the AIDS cases in Latin America and the Caribbean.

Calypte Biomedical Corporation (Nasdaq:CALY) is a health care company dedicated to the development and commercialization of urine-based diagnostic products and services for Human Immunodeficiency Virus Type 1 (HIV-1), sexually transmitted diseases and other chronic illnesses. Carter-Wallace (NYSE:CAR) has the exclusive U.S. sales and marketing rights for Calypte's HIV products in the hospital, public health and reference lab markets. Calypte's tests include the screening EIA and supplemental Western Blot tests, the only two FDA-licensed HIV-1 antibody tests that can be used on urine samples. The company believes that accurate, non invasive urine-based testing methods for HIV and other chronic diseases may make important contributions to public health by helping to foster an environment in which testing may be done safely, economically, and painlessly.

Statements in this press release that are not historical facts are forward-looking statements, including statements regarding market adoption of the HIV-1 urine testing products and the serum Western Blot test and statements regarding marketing and distribution arrangements and plans. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including the Company's ability, directly or through third parties, to successfully manufacture and market the HIV-1 urine testing products and the serum Western Blot test and the ability of the Company to continue to finance its operations and to enter into distribution and marketing arrangements. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events. Factors which may impact the Company's success are more fully discussed in the Company's most recent periodic report on Form 10-K.