NEWS RELEASE
June 2, 1998

Michigan Biologic Products Commission Announces Bidder

With a unanimous decision today, the Michigan Biologic Products Commission passed a resolution to recommend BioPort as its proposed transferee and the terms of a proposed transaction on the sale of the Michigan Biologic Products Institute. The BioPort bid totals nearly $25 million. Considerations includes cash, secured notes, product donations and royalties.

"This is a win for Michigan because the Commission has ensured that Michigan receives its fair share and a win for the workers of the Institute who will be given the opportunity to earn a piece of the company they work for," said Michigan Biologic Products Commission Chair Dennis Schornack. "The Department of Defense has also shown a commitment to working with BioPort for a permanent and stable supply of military product."

Admiral William Crowe, Managing Director of Intervac, the lead investor of BioPort, is former Chairman of the Joint Chiefs of Staff, former Ambassador to the United Kingdom and former Chairman of the President's Foreign Intelligence Advisory Board.

"This choice conforms with Resolution number four that the Commission passed in July of 1996," said Commissioner James K. Haveman, Jr. "It also conforms with public law authorizing the sale of the Institute while maintaining Michigan's preferential access to the important products the Institute produces."

Resolution No. 4 established goals with respect to transferring the Institute out of state government and into the private sector. The transaction should be structured as a single transaction to sell all of the State assets associated with the manufacture of biologic products. The transaction should be structured to provide the highest probability for the successor entity to become a profitable, viable enterprise contributing to the economy of the State that is able to retain and increase the number of jobs it provides. It should be structured to assure, to the greatest extent practicable, preferential State access to biologic products for use by Michigan public health agencies to prevent disease and should be structured so the State receives fair consideration for the assets being sold.

Nearly 20 interested firms from nine different countries investigated purchasing the Michigan Biologic Products Institute. The decision draws to a close the selection process in which the Commission has been engaged for over two years.

"It is clear that re-opening the bidding process in January after the U.S. Department of Defense announced its policy to vaccinate all troops against anthrax and the agreement to terminate with SmithKline Beecham has had a positive impact on the marketability of the Institute," said Schornack. The Michigan Biologic Products Institute is the only remaining state owned laboratory in the country.

The State Administrative Board will grant final approval to the Commission recommendations following the receipt of an independent fairness opinion.

FOR IMMEDIATE RELEASE PRESS CONTACT: Geralyn Lasher
June 2, 1998 (517) 241-2112