Novavax Acquires Vaccine Development Division of DynCorp

Acquisition Combines Novavax's Potent Adjuvant Technology with Division's

45-Year Expertise in Vaccine Development and Manufacture to Develop Therapies

For the Treatment of Cancer and Infectious Diseases

Aug 11, 1999, 01:00 ET from Novavax, Inc.

    COLUMBIA, Md., Aug. 11 /PRNewswire/ -- Novavax, Inc. (Amex:   NOX) today
 announced that it has acquired substantially all of the assets, excluding cash
 and accounts receivable, of the Biomedical Services Laboratory Division of
 DynCorp of Reston, Va.  The division, established in 1964, is engaged in
 contract research, development and pilot manufacturing of human vaccines for
 government laboratories and other vaccine companies, generating over
 $2 million in revenues in each of the last three years.  This strategic
 acquisition combines Novavax's Novasome(R) adjuvant technology with the
 Division's extensive expertise in vaccine development and manufacturing to
 develop therapies for the treatment of various cancers and infectious
     John A. Spears, President and CEO of Novavax, stated, "This acquisition
 significantly expands our internal vaccine developmental capabilities in the
 fields of both infectious diseases and oncology.  Accordingly, we expect to
 establish a complete pipeline of vaccine products by combining our adjuvant
 technology with the Division's vaccine development and manufacturing
 capabilities. The acquisition brings with it several issued and pending
 patents in the areas of therapeutic and preventative vaccines that may be
 commercially exploited. Furthermore, the Division historically has generated
 sufficient revenues to fund its research and development programs.  Our
 combined intellectual property base, existing contractual relationships and
 complementary technologies will allow us to explore the many possibilities of
 our union."
     Located in Rockville, MD, the Division's 12,000 sq. ft. leased facility is
 composed of offices, research and developmental laboratories, separate Quality
 Control laboratories, and a pilot GMP-compliant (Good Manufacturing Practices)
 manufacturing facility for preparation of molecular and tissue culture derived
 vaccines. In the last 12 months, the Division has manufactured five different
 vaccines, which are presently in or have completed Phase I or Phase II human
 clinical trials with either government collaborators at the National
 Institutes of Health or corporate clients.  There are 26 employees in the
 Division consisting of scientists and scientific support staff, all of whom
 will be joining Novavax.  The Director of the Division is Louis Potash, Ph.D.,
 who also directs the Viral Tissue Culture Group.
     Dr. Potash has been with the Biomedical Services Laboratory Division since
 1964 and is one of the original scientists who worked on both the Salk-type
 inactivated Polio vaccines and inactivated whole Influenza virus vaccines
 during the 1950s.  Dr. Potash continues to make significant contributions in
 the fields of infectious disease and vaccinology and is an expert in the areas
 of new cell line development and characterization, viral proliferation and
 production in cell culture and eggs, preparation of live, attenuated
 respiratory and gastrointestinal viral vaccines, as well as inactivated viral
 respiratory vaccines.
     Robin Robinson, Ph.D., the Associate Director of the Biomedical Services
 Laboratory Division also directs the Molecular Virology Group and has been
 with the Division since 1995.  Dr. Robinson and his group design and
 manufacture two different types of molecular vaccine products: molecularly
 expressed proteins (Hepatitis E ORF-2 capsid protein vaccine) and molecular
 expressed and secreted viral-like particles (VLPs such as the Human papilloma
     D. Craig Wright, M.D., chief scientific officer of Novavax, stated, "We
 believe there will be significant synergies between our Novasome(R) adjuvant
 intellectual property portfolio and DynCorp's vaccine development efforts.
 Currently, our adjuvant technology is being tested in influenza, Human
 papilloma virus and HIV and HSV1 peptide vaccines.  As a result, we are very
 excited to be joining forces with Drs. Potash and Robinson and their teams of
 world-class scientists to develop vaccines for a variety of human diseases and
 look forward to identifying our first candidates."
     The assets acquired include all personal property and equipment and all
 related intellectual property.  In addition, DynCorp entered into a five-year
 non-competition agreement.  The acquisition will be accounted for under the
 purchase method of accounting for business combinations.
     Headquartered in Reston, VA, DynCorp is a billion-dollar technology and
 technical services firm specializing in information technology, outsourcing
 and specialized technical services.  With more than 16,000 employees and 550
 customer and company locations worldwide, DynCorp is among the largest
 privately held technology companies in the nation.
     Novavax, Inc. is a biopharmaceutical drug delivery company engaged in the
 research and development of differentiated drug products for large and growing
 markets.  The company is applying its proprietary lipid vesicle encapsulation
 technologies including Novasomes(R) and micellar nanoparticles to develop
 product candidates for the topical and oral delivery of generic and non-
 generic drugs, peptides, proteins and oligonucleotides.  The company's
 Novasome technology is also being developed as an adjuvant delivery system for
 enhanced vaccine efficacy.  Novavax has several product candidates in
 preclinical and human clinical trials, including ESTRASORB(TM), a topical
 cream for estrogen replacement therapy, which will commence a U.S. multi-
 center Phase III trial in 1999.
     Statements made in the press release that state the company's or
 management's intentions, hopes, beliefs, expectation or predictions of the
 future are forward-looking statements.  The company's actual results could
 differ materially from those projected in such forward-looking statements.
 Additional information concerning factors that could cause actual results to
 differ materially from those projected in such forward-looking statements
 contained in Item 7 of the company's SEC report on Form 10-K for the year
 ended December 31, 1998. Copies of this filing may be obtained by contacting
 the company at 8320 Guilford Road, Columbia, Maryland 21046, phone
 301-854-3900 and fax 301-854-3901 (Website URL, or the

SOURCE Novavax, Inc.