Rhone-Poulenc Rorer Licenses Vical's "Naked" DNA Technology To Treat Neurodegenerative Diseases October 8, 1997 SAN DIEGO--(BW HealthWire) via Individual Inc. -- Vical Inc. (NASDAQ:VICL) announced today the signing of an agreement granting Rhone-Poulenc Rorer Inc., the pharmaceutical subsidiary of Rhone-Poulenc (NYSE:RP), an exclusive worldwide license to use Vical's patented "naked" DNA gene delivery technology to develop certain gene therapy products for potential treatment of neurodegenerative diseases, which involve the loss of nerve cell function. RPR Gencell, the gene therapy division of Rhone-Poulenc Rorer, will use this technology. The agreement resulted in an initial payment to Vical of $1 million. Vical will receive milestone payments and royalties if products are successfully developed by RPR Gencell using the Vical technology. Vical has previously licensed the technology to others for vaccines against certain infectious diseases and for delivery of certain growth factors. Alain B. Schreiber, M.D., Vical's President and CEO, said: "We are pleased to expand the number of corporate subscribers to our technology to include the Rhone-Poulenc family. Rhone-Poulenc Rorer has demonstrated expertise in neurodegenerative diseases and RPR Gencell is well positioned to develop and market gene-based therapies. We continue our efforts to apply our proprietary naked DNA platform technology in a broader arena through internal development and external agreements." Neurodegenerative diseases include Alzheimer's, Parkinson's, Huntington's, Creutzfeldt-Jakob, and others, all characterized by the gradual loss of various nerve cell functions. The gene-based treatments would involve administration of specific genes into tissues where nerve cells had begun to deteriorate. Administration of the genes may increase local production of neurologically active proteins which may slow the loss of nerve cell function. Vical Incorporated is focused on the development of gene-based pharmaceutical product candidates for human therapy. Vical's gene-based therapeutic approach may offer safer and more cost-effective alternatives for many diseases, including cancer, infectious diseases and metabolic disorders. RPR Gencell is the division of Rhone-Poulenc Rorer dedicated to the discovery, development, manufacture and commercialization of gene therapy products. Rhone-Poulenc Rorer is a global pharmaceuticals company dedicated to improving human health. Rhone-Poulenc is one of the world's leading life sciences and specialty chemicals companies. Through its innovative products, Rhone-Poulenc contributes to the improvement of human, animal and plant health and to the quality and safety of products used in industry and daily life. In 1996, it recorded sales of FF86 billion (US$16 billion). This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially form those set forth in the forward-looking statements, including whether any product candidates will be discovered or, if discovered, whether any will be shown to be safe and efficacious in clinical trials, the timing of clinical trials, whether Vical will receive any additional funds under the agreement with Rhone-Poulenc Rorer, and additional risks set forth in the Company's filings with the Securities and Exchange Commission. Actual results may differ materially from those projected. These forward-looking statements represent the Company's judgment as of the date of this release. The company disclaims, however, any intent or obligation to update these forward-looking statements. CONTACT: Vical Incorporated | Alan R. Engbring, Director, Investor Relations | 619/646-1127 | Robert H. Zaugg, Vice President, Business Development | 619/453-9900 | or | Rhone-Poulenc Rorer | Bob Pearson | 610/454-3872 | John Abrams | 610/454-5452 [Copyright 1997, Business Wire]