Calypte to Distribute Its HIV-1 Urine Test in South Africa.

Business Editors

ALAMEDA, Calif.--(BUSINESS WIRE)--June 6, 2000

Spread of HIV/AIDS in South Africa is fastest in the world - urine

testing could be critical first step in slowing rate of infection

Calypte Biomedical Corporation (NASDAQ: CALY) announced today the appointment of American Edge Medical Company as the exclusive distributor of its urine HIV-1 antibody testing products in South Africa. Miami-based American Edge has partnered with African Medical Solutions (AMS), a South African company formed specifically to market Calypte's products in that country.

It is estimated that 10 percent of South Africa's 43 million people are infected with HIV or AIDS. The global HIV/AIDS epidemic is so far reaching that the Clinton administration has for the first time formally declared it a threat to United States national security. A crucial first step to stemming the deadly spread of HIV in South Africa is testing and education. However, major challenges to an effective widespread testing effort include the vast size of the country, remote populations, poor infrastructure and relatively few trained healthcare providers.

Significant advantages of Calypte's urine HIV-1 antibody tests are that unlike blood, urine samples can be obtained by non-medical professionals, have a long shelf life, are not considered hazardous and require no refrigeration. An additional advantage of urine testing over blood is that urine does not appear to harbor the infectious virus itself and according to the National Institutes of Health Fact Sheet on HIV Infection and AIDS, there is no evidence that HIV is spread through urine.

"Urine-based testing provides a safer and more convenient means of testing than traditional blood serum testing - a factor that is pertinent to sub-Saharan Africa where 60 percent of the world's HIV cases are found," said Professor Anthony E. Bunn, PhD, Programme Director of the Technology & Business Development Group of the South African Medical Research Council.

In a novel distribution approach, AMS is creating its own mobile and containerized HIV testing and education program. Using shipping containers custom-engineered as "container clinics" and motor vehicles custom modified into state-of-the-art "mobile clinics," AMS staff will fan out across South Africa to bring HIV education and testing directly to the townships and remote areas of the country. "Through this unique blend of African entrepreneurship and American technology, much can be done to combat the spread of HIV in Africa," said Dr. Bunn.

"AMS stands apart from most sales and distribution firms because our mission includes helping as many South Africans as possible learn their HIV status," said Gavin Walton, Co-Director of African Medical Solutions. Our goal is to test, counsel and educate people throughout South Africa. With the creation of our fleet of mobile clinics, we'll knock down the boundaries that currently thwart an effective effort," Walton said.

"Clearly this situation calls for immediate attention, which is why we are so enthusiastic about our partnership with American Edge and African Medical Solutions," said Nancy E. Katz, President of Calypte. "Their vision of creating an infrastructure to help combat South Africa's HIV problem holds promise for a broad-based effort against this devastating disease."

The South African Medical Research Council and AMS have jointly approached the European Union regarding pilot financing for the container clinics. AMS expects to eventually field a total of 1000 container clinics and 450 mobile clinics, with the first units deployed by September 2000. Medical professionals and the media will have an opportunity to see firsthand one of AMS's "container clinics" at the 13th International AIDS Conference to be held in Durban, South Africa from July 9-14, 2000.

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. 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 that may impact the Company's success are more fully disclosed in the Company's most recent periodic report on Form 10-Q.