Santa Barbara, California; London, United Kingdom- Remedyne, a US vaccine biotechnology company, announced today that it has signed a collaborative research and development agreement with Merial Limited, the world's leading animal health company. Under the agreement, Remedyne and Merial will jointly develop medicines to enhance the health and well being of animals based on Remedyne's DNA Adenine Methylase (DAM) technology. Merial will retain rights to animal health applications, and Remedyne will retain rights for human health applications of the technology.

Under terms of the agreement, Merial will provide research and development support for two years to Remedyne in order to conduct feasibility studies on a number of DAM-based vaccine product candidates. During the two-year agreement, Merial will have the right to execute an exclusive world-wide license for all animal health applications identified in the research process. The agreement provides for Remedyne to receive initiating payments and certain developmental milestone payments.

Utilizing its DAM Antimicrobial Technology, Remedyne is focused on the development of a new generation of vaccines based on DNA Adenine Methylase technology for the treatment of some of the world's most costly human diseases such as cancer, ear, and urinary tract infections.

"We are very pleased to enter into this joint venture with Merial. Their position as the world leader in animal health and their significant experience in developing animal health products is valuable validation of the work already completed by the scientific staff of Remedyne", said Dr. Krisztina Zsebo, Chief Executive Officer of Remedyne. "The breadth of diseases that Remedyne can target with its platform technology is immense. Our work with Merial to refine our animal capabilities will also significantly support and sustain our human pharmaceutical development work."

David Hinton, Merial's Head of New Business Development commented, "Merial is pleased to enter into this collaboration with Remedyne, as it will significantly help us accelerate our fundamental research program in animal vaccines, which focus on delivering innovative products for our customers."

Remedyne Corporation is a private biotechnology company focused on developing next generation potent immune stimulating vaccines to treat cancer and infectious disease in humans, companion animals and livestock. These products are based upon the company's exclusive worldwide license to the DNA Adenine Methylase (DAM) Technology developed by Remedyne's founding scientists at the University of California at Santa Barbara.

For further information please visit http://www.remedyne.com

Merial Limited is the world's leading innovation driven animal health company and provides a comprehensive range of pharmaceuticals and vaccines to enhance the health, well-being and performance of a wide range of animal species. Merial operates in more than 150 countries worldwide. Its 2000 sales were in excess of $1.6bn (1.7bn Euros).

For further information please visit http://www.merial.com/