ValiGene and Kimeragen announced today that they will merge to create ValiGen, a EuroAmerican functional genomics company. The newly formed ValiGen will combine the genomics platform under development at Valigene with chimeraplasty, the unique gene correction technology being developed at Kimeragen. The new company will pursue commercial opportunities for its technologies in three areas: ValiGen will apply its genomics and chimeraplasty technologies to the identification and validation of novel targets for therapeutic intervention against major diseases, both for commercial partners and for its own account. ValiGen will explore aggressively the potential for chimeraplast-based gene repair therapeutics to treat human diseases associated with particular mutations.

ValiGen will work with commercial partners in the global agriculture and food industries to use both genomics and chimeroplasty in order to achieve seed and crop improvements without introducing exogenous genetic material into the seed.

The transaction has been structured and is being implemented as a merger of equals.

"By combining our technologies and resources, we have created an integrated functional genomics system that spans the continuum from identifying genes associated with human disease or desired plant traits to validating the molecular intervention points used for targeting the development of new life sciences products while retaining the ability to create and market those products in selected markets, '' said Jean Louis Pourny, Founder and CEO of ValiGene. "Our technology platform/system is really the first complete solution to fast and cost effective in vivo target validation. As a transnational company, we will have the capabilities to work closely with our commercial partners in both the U.S. and Europe.''

"ValiGene's proficiency in identifying and validating new disease and desired trait targets fits perfectly with Kimeragen's expertise in gene repair for known targets,'' said G. Steven Burrill, Chairman of Kimeragen. "Together, our technologies can provide key competitive advantages to life sciences companies, including more rapid discovery and development time, improved product selectivity and efficacy, enhanced product safety, and stronger patent protection.''

ValiGen's integrated system is comprised of proprietary genomics and informatics technologies.
Specifically, the system homes in on genes important to disease processes or desired traits; identifies genetic variability (SNPs) among groups of individuals and associates these differences with important phenotypes to analyze disease predisposition, drug response or desired agricultural traits. In addition, the Company's system will harness the power of informatics to understand the physiological and metabolic pathways necessary for target validation and to identify key intervention points that will accelerate product development.

The Company is focusing on a limited number of large and underserved markets in cancer,
obesity/diabetes, cardiovascular disease, single-gene human diseases, and crop improvement.

"The power of this approach is that there is real synergy between the companies' respective
technologies,'' commented Stephen Evans-Freke, Co-Founder and Director of ValiGene. "In both
pharmaceuticals and agriculture, the new ValiGen has the technologies to go from raw genetic profiling of phenotypes to validated, patented targets and proprietary target based products. ValiGen can differentiate itself by delivering tangible value from genomics, rather than offering databases, tool sets and black boxes.''

Following the merger, ValiGen will have approximately 100 employees. It will maintain scientific
operations in both Paris and Newtown, PA and will base its agricultural division in San Diego, CA. Jean Louis Pourny, ValiGene's Founder and CEO will serve as the new company's CEO. Dr. David Kingsbury of ValiGene will serve as head of R&D. The Human Therapeutics activities will be managed by Dr. Michael Blaese of Kimeragen, who pioneered human gene therapy while at the National Institutes of Health, whilst the Agricultural business unit will be managed by Dr. Keith Walker also of Kimeragen, who has been involved with industrial biotech for over 25 years.

The ValiGen Board of Directors will include equal participation from both companies existing Boards, including Stephen Evans-Freke as Chairman of the new Board and also G. Steven Burrill, Chairman of Kimeragen. The ValiGen Scientific Board will be chaired by Dr. J. Craig Venter, Founder and Director of The Institute for Genomics Research (TIGR) and Founder and President of Celera Genomics Corporation.

Privately held ValiGene S.A. specializes in therapeutic target identification and validation using  the toolsof functional genomics and gene expression analysis. ValiGene has developed and validated a suite of proprietary new technologies designed to facilitate and accelerate the discovery of new targets for therapeutic intervention in pharmaceuticals or for crop improvement in agriculture.

Kimeragen, a privately-held development stage company, engages in the discovery and development of unique products for human health, plant and animal applications. Kimeragen's enabling technology platform, chimeraplasty, allows specific repair or replacement of small segments of genes. Chimeraplasty is referred to as "precise genetic surgery'' because specific genes are selectively modified without affecting the rest of the genome or altering normal protein expression and cell function. This technology has application to three distinct business areas: pharmaceuticals to repair genetic abnormalities implicated in a broad array of human diseases; plant and industrial products to enhance genetic traits in plants; genomic and transgenic animal technologies aimed at developing higher value applications and products for human health and veterinary care. Kimeragen's gene repair technology is the result of basic research focused on understanding how a cell naturally repairs its damaged genetic material.

Company news release
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