Hematech Receives Second $3 Million Congressional Appropriation.

SIOUX FALLS, S.D. -- Hematech, LLC announced today that the House and Senate conference committee on the FY 2005 Defense Department Appropriations bill has included $3 million to support Hematech's antibody development programs. The funding will be administered by the Army's Joint Vaccine Acquisition Program (JVAP). This is the second consecutive year that funding was included in the DoD's appropriation bill at the request of South Dakota's Senator, Tom Daschle. The legislation has been approved by the House and Senate and is expected to be signed by the President in the coming days.

Hematech is developing a large-scale bovine production system that will enable the company to rapidly produce fully-human polyclonal antibodies. These antibodies can be used for a wide variety of therapeutic applications, including immune deficiency, infectious disease, cancer, autoimmune disease and biodefense. The Company has an ongoing program with JVAP for the development of a herd of 25 cows that will be used to produce antibodies against potential bioterrorism agents including botulinum toxin.

"We are grateful for the continued support that we have received, which has resulted for the second year in a row in a significant appropriation from the US Congress," said James Barton, Chief Executive Officer of Hematech. "Hematech has made significant progress toward our goals over the past year, including the development of calves with an increased yield of human polyclonal antibodies."

About Hematech, LLC

Hematech, working with its collaborator, Kirin Brewery Company , Ltd., of Tokyo, Japan, is a pioneer in the development and production of polyclonal antibodies for therapeutic uses. The Company's patented bovine transgenic technologies will enable Hematech to rapidly produce unlimited quantities of uniform, high affinity, fully human antibodies for a wide variety of disease targets. Hematech intends to build the capacity to produce a diversified portfolio of antibody products that the company will commercialize through collaborative arrangements with multiple pharmaceutical partners. For more information on Hematech, visit the company's website at www.hematech.com.