PRNewswire - Tuesday November 14, 2000

"The ruling does not prevent Stressgen from commercializing or further expanding its intellectual property position around the core stress protein fusion technology, now in clinical trials. This patent opposition is a clear indication that stress proteins are increasingly becoming recognized as important commodities in the development of novel immunotherapeutics," said Daniel L. Korpolinski, President and CEO of Stressgen. "Stressgen has a solid intellectual property position and exclusive rights to commercialize its stress protein fusion technology and specific products, such as HspE7. The Company continues to build upon and around its intellectual property applications."

Stress proteins, also known as heat shock proteins (Hsps), are powerful natural stimulants of the immune system and have many critical biological functions.

They offer a number of opportunities for the discovery and development of novel therapeutics. Recent studies have demonstrated that they potently activate the immune cells required to combat virally induced infections and cancers. There is also evidence that they play a key role in the presentation of disease-specific markers, called antigens, to the immune system. These critical immune-stimulating activities, as well as their fundamental roles in several vital cellular functions, make stress proteins valuable tools for therapeutic development.

Stressgen is currently conducting clinical trials for HspE7 in the treatment of sexually transmitted diseases caused by the Human Papillomavirus (HPV). The Company has a Phase III trial for HPV-related anal dysplasia, and active Phase II trials in cervical cancer and cervical dysplasia. Stressgen also plans to initiate a Phase II trial in genital warts.

HspE7 is based on Stressgen's proprietary Hsp fusion technology. HspE7, a recombinant fusion product, is composed of heat shock protein 65 (Hsp65) from Mycobacterium-bovis BCG and the protein E7. As a member of the family of stress proteins, Hsp65 is known to elicit a powerful immune response. The E7 protein is derived from the HPV and is involved in the malignant transformation of epithelial cells. E7 is a tumor-specific antigen and represents a precise target for the immune system attack on abnormal cells.

Stressgen Biotechnologies Corporation is a biopharmaceutical company focused on the development and commercialization of innovative stress protein- based immunotherapeutics. The Company is developing a broad range of products for the treatment of virally induced infections and related cancers, such as Hepatitis and HIV as well as asthma and allergy. Stressgen is also an internationally recognized supplier of research products for the study of cellular stress, apoptosis, oxidative stress and neurobiology. These products are used by scientists worldwide.

This foregoing press release may contain statements that are not based on historical fact, including, without limitation, statements containing the words "believes", "may", "will", "intends", "plans", "expects" and words of similar import. Such statements may constitute "forward-looking" statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements implied by such statements. Such factors include, but are not limited to, those with respect to the timing of regulatory submissions and approvals, the ability of the Company to continue to develop its products (including HspE7), the Company's ability to maintain or expand its intellectual property position, the timing and success of planned or existing clinical trials and anticipated levels of revenues and expenses and others, all as described Company's Registration Statement on Form F-10 and other filings with the U.S. Securities and Exchange Commission.

SOURCE: Stressgen Biotechnologies Corp.

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