STRESSGEN/ROCHE TO DEVELOP/MARKET HPV VACCINE.

Stressgen Biotechnologies Corporation and Roche have formed a major global collaboration for the marketing and development of the first therapeutic vaccine for human papillomavirus (HPV) - a promising breakthrough approach to treating this serious and chronic disease. Recognized as a precursor to cervical and anal cancers, there are few if any non surgical treatment options for men and women suffering from HPV. Stressgen's heat shock protein fusion product, HspE7, designed to invoke a potent immune response, is in clinical development for a broad range of HPV-related diseases including cervical and anal dysplasia, genital warts and recurrent respiratory papillomatosis (RRP).

Highlights of this deal include the following:

* Revenue from the deal terms could total up to $204 million (U.S.) and includes an upfront fee, significant development and commercial milestones and an equity investment by Roche of Stressgen shares. In addition, upon commercialization, Stressgen will receive sales-based payments at a favorable rate.

* This collaboration will leverage Roche's strength in the development and commercialization of anti-viral products with Stressgen's intellectual property on this novel class of agent. It builds on the recent agreement announced by Roche with the Institut Pasteur, which should enable Roche to develop an extensive range of diagnostic products for the early detection of HPV, one of the most prevalent and serious sexually transmitted diseases in the world. With the Stressgen's HPV therapeutic vaccine, Roche now has an integrated strategy for HPV -- able to address both diagnosis and treatment.

* This major agreement recognizes the medical importance of Stessgen's core technology, heat shock protein fusions, and of the company's lead product, HspE7, as the first therapeutic vaccine for the treatment of diseases caused by HPV. Revenue resulting from the collaboration will enable Stressgen to advance its lead product for RRP into late-stage clinical development, and its pipeline of Hsp-fusion therapeutics for conditions such as hepatitis B, herpes simplex virus and human immunodeficiency virus (HIV). In addition, Stressgen will continue to develop follow-on Hsp-fusion products for the treatment of HPV-related cancers such as cervical cancer, anogenital cancer and as many as one-third of all head and neck cancers.

For more information call 650/575-1509.