ViRexx Announces Manufacturing and Supply Agreement with Protein Sciences Corporation for Hepavaxx B Vaccine.

EDMONTON, Alberta -- ViRexx Medical Corp. (TSX:VIR) a company focused on immunotherapy treatments for cancer, chronic hepatitis B & C and embolotherapy treatments for tumors today announced the completion of a Collaborative Development Agreement with Protein Sciences Corporation (PSC), a biopharmaceutical service company, for the manufacture of ViRexx's lead Chimigen(TM) vaccine, HepaVaxx B.

HepaVaxx B is a therapeutic vaccine being developed for the treatment of patients chronically infected with hepatitis B virus. Signing this agreement with PSC is a major advancement in the development of HepaVaxx B, which is on track to start a Phase I clinical trial in the third quarter of 2005.

"PSC is an experienced contract manufacturer with an excellent proprietary technology that allows us to produce HepaVaxx B under cGMP conditions suitable for clinical development and commercial sales," commented Marc Canton, President and Chief Operating Officer of ViRexx. "This collaboration with PSC is a key step toward achieving our clinical milestone of initiating a HepaVaxx B Phase I trial in the third quarter."

"It is a pleasure to be applying our Baculovirus Expression Vector System (BEVS) technology for the development of a new and novel vaccine for the treatment of hepatitis B," said Manon Cox, Chief Operating Officer of Protein Sciences Corporation. "This relationship further demonstrates the value of BEVS to vaccine development and fits with PSC's core mission of developing next generation vaccines of our own design and those of our GeneXpress(R) partners."

About Chimigen(TM)

The Chimigen(TM) vaccine platform educates the immune system to recognize and remove specific viruses in the body. Preclinical evidence demonstrates that Chimigen(TM) vaccines elicit a broad immune response and suggests the platform can be developed for prophylactic as well as therapeutic applications. HepaVaxx B is being developed to therapeutically treat patients chronically infected with hepatitis B virus. More than 370 million people world-wide are known to be chronic carriers of hepatitis B, which is a major cause of future liver disease as well as liver cancer. At present, there are no therapeutic vaccines for treating chronically infected patients.

About ViRexx Medical Corp.

ViRexx is an Edmonton, Alberta based biotechnology company focused on the development of novel therapeutic products for the treatment of cancer and chronic viral infections. ViRexx's most advanced programs include drug candidates for the treatment of ovarian cancer, chronic hepatitis B & C and solid tumors.

ViRexx's lead product, OvaRex(R) MAb, a therapy for the treatment of late-stage ovarian cancer, is currently the subject of a Phase III clinical trial being funded by ViRexx's licensing partner Unither Pharmaceuticals, Inc., a subsidiary of United Therapeutics Corporation. For additional information about ViRexx, please see www.virexx.com.

About Protein Sciences Corporation

Protein Sciences is a private Meriden, Connecticut-based vaccine company focused on developing the next generation of safer and more effective human and animal vaccines and diagnostics. PSC is the world leader in developing and manufacturing products using its patented baculovirus expression vector system technology (BEVS) and leverages its expertise, BEVS technology and on-site manufacturing capability to provide GeneXpress(R) product development and production services for customers. The company is the partner of choice for pharmaceutical, biotechnology and vaccine companies who seek the fastest and safest way to proceed from a gene target to a commercial vaccine, therapeutic, diagnostic or screening protein.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of the Company with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

ViRexx Medical Corp. (TSX:VIR)