GENEMEDICINE and University of California, San Francisco Form Gene Therapy Collaboration; Inhibition of Angiogenesis to Suppress Tumor Growth is Primary Focus of Collaboration.

THE WOODLANDS, Texas--(BUSINESS WIRE)--July 8, 1997-- GENEMEDICINE, Inc. (Nasdaq: GMED) announced today that it has entered into a collaboration with Professor Donald M. McDonald of the Department of Anatomy and Cardiovascular Research Institute at the University of California, San Francisco (UCSF) to advance the Company's gene therapy development efforts.

The collaboration specifically includes the development of gene medicines to treat cancers through inhibition of angiogenesis. Angiogenesis, the development of new blood vessels, is critical for the growth of tumors. The selective inhibition of angiogenesis, and the deprivation of blood supply to the tumor, offers a new way to treat cancer. GENEMEDICINE intends to develop proprietary non-viral gene delivery formulations that will target sites of tumor related angiogenesis. The UCSF scientists will employ Dr. McDonald's unique methods for assessing three-dimensional in vivo organ and cellular distribution of formulated DNA complexes in animal models analyses of the biodistribution and intracellular trafficking of the Company's novel formulations. GENEMEDICINE will utilize the information gained to develop both gene medicines for treating cancers and gene medicines for other indications. GENEMEDICINE will sponsor the UCSF research and has an option for an exclusive worldwide license to any discoveries resulting from the UCSF collaboration.

"Inhibition of angiogenesis has the potential to provide important clinical value in treating cancer," stated Eric Tomlinson, D.Sc., Ph.D., President and Chief Executive Officer of GENEMEDICINE. "Dr. McDonald is a leading endothelial cell biologist with extensive experience studying structure and function of normal and inflamed endothelium. Dr. McDonald's laboratory has made crucial advancements in understanding the biodistribution of formulated plasmids. Our expertise in the development of novel gene delivery systems, together with the expertise of Dr. McDonald and his team of scientists is expected to lead to the development of new formulations to more effectively deliver genes to tumors, particularly those which are not amendable to direct administration. Our work associated with the UCSF collaboration is primarily the development of injectable gene medicines which selectively deliver therapeutic genes to tumors specifically to inhibit angiogenesis. These efforts advance and complement the activities of GENEMEDICINE to develop effective immunotherapy products to treat cancer." GENEMEDICINE, with its collaborator Boehringer Mannheim, is developing its IL-2 Gene Medicine for the treatment of head and neck cancer. Phase I human clinical trials of the IL-2 Gene Medicine are expected to begin early in the third quarter of 1997.

GENEMEDICINE is a biopharmaceutical company developing gene medicines as well-characterized pharmaceutical products designed to produce sustained levels of therapeutic proteins within the body. Gene medicines are intended for both acute and chronic use and to be administered through convenient and conventional routes, including intramuscular or intravenous injection, or inhalation. The Company's core gene delivery technology includes lipid-, peptide-, carbohydrate- and polymer-based systems, each able to be applied to specific clinical targets. Gene medicines also incorporate novel DNA sequences that may be used to control the tissue-specificity, duration and level of functioning of administered genes. The Company has developed patented GeneSwitch(TM) technology that allows an orally administered drug to turn off or to activate the expression of previously administered therapeutic genes in specific cells. GENEMEDICINE has created high-yield, low-cost and scaleable integrated manufacturing processes for the production of its gene medicines for clinical use. GENEMEDICINE has established a broad proprietary position in non-viral gene therapy that includes several key gene delivery and gene expression technologies, the manufacture of gene medicines and also the use of certain genes to treat certain disease indications. -0-

Except for the historical information contained herein, this press release contains forward-looking statements. Actual results may differ materially. Factors that could cause or contribute to differences include continued scientific progress in its research and development programs, the scope and results of preclinical testing and clinical trials, the time and costs involved in obtaining regulatory approvals, the costs involved in the filing, prosecuting and enforcing of patent claims, competing technological developments, the cost of manufacturing and scale-up and effective commercialization activities and arrangements. These factors and others are more fully discussed in periodic reports filed with the Securities and Exchange Commission including the Company's Form 10-K for the year ended December 31, 1996.

CONTACT: GENEMEDICINE, Inc., Houston

Richard A. Waldron, 281/364-1150

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