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Avantogen and Hawaii Biotech to combine vaccine businesses

, will become CFO. David G. Watumull will remain CEO of Hawaii Biotech's current anti-inflammatory small molecule development business, which will be spun out into a new entity, Cardax Pharmaceuticals, Inc., to be wholly owned by current Hawaii Biotech shareholders.

Initial board members will be: Avantogen Chairman Richard Opara, who will serve as Chairman; current Hawaii Biotech Chairman Nick Mitsakos; Leonard Firestone, M.D., CEO; Joseph Boystak, formerly Managing Director with Jefferies & Co and now with Chopin Capital Partners; and a fifth member to be chosen by Hawaii Biotech.

New Board Chairman Dr. Richard Opara, who is also Chairman of Avantogen, commented: "This combination will create a truly exceptional biotechnology company, and is a pivotal step in restructuring Avantogen to optimize the value of its assets for the benefit of its shareholders. Our vision is to create a public company that is a world leader in the development of recombinant vaccines for prevention of common, deadly, incurable diseases using our proprietary, state-of-the-art manufacturing methods. These methods will allow us to lead the marketplace by rapidly delivering the quality and quantity of vaccine product needed to address worldwide pandemic diseases such as Influenza. We also see worldwide potential for the development of the West Nile and Dengue Fever vaccines."

"We have explored a number of options over the past year for the development of our vaccine business," added David G. Watumull, CEO of Hawaii Biotech. "We believe that this strategy is our best choice as it brings together the necessary financial, scientific, and management resources to focus and accelerate development of our vaccines, including those for avian flu, West Nile, and dengue fever."


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Contact: Dr. Leonard Firestone
LFirestone@Avantogen.com
Research Australia
20-Mar-2006


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