Press Releases

AMERICAN BIOGENETIC SCIENCES SECURES
VACCINE AGREEMENTS WITH RUSSIAN FEDERATION ENTITIES


Copiague, New York, January 9, 2002 American Biogenetic Sciences, Inc. (ABS or Company) (Symbol:MABA) announced today that it has executed two new ten-year agreements with Russian entities, granting ABS exclusive rights to distribute in specified markets certain vaccines to be manufactured in Russia.

ANTHRAX VACCINE:

ABS has entered into a ten-year agreement, dated January 14, 2002, with a Russian Association (Association) which represents over thirty manufacturers, enterprises, and scientific research institutes located in the Russian Federation. The Association has the exclusive right to sell and distribute worldwide an anthrax vaccine produced by a Russian manufacturer. Under the agreement between ABS and the Association, ABS has been granted the exclusive right to act as a distributor for the anthrax vaccine in the territory consisting of the United States, Canada, Mexico, countries of Central and South America and China. The anthrax vaccine is presently being marketed outside of the ABS territory by the Association.

The agreement between ABS and the Association also grants ABS the first priority right to purchase a broad range of other immunobiological preparations including other human vaccines (biological products). The volumes, terms of delivery, price, and specifications related to the biological products will be negotiated separately with the Association. Under the agreement, ABS plans to make certain biological products available to pharmaceutical companies, government agencies and regulatory authorities for testing and evaluation.

SMALLPOX VACCINE:

ABS has also entered into a separate ten-year agreement, dated January 15, 2002, with a Russian Federation manufacturer (Manufacturer) which grants ABS rights to act as the Manufacturer’s exclusive worldwide distributor (with the right to assign sub-distributors and agents) for smallpox vaccine for human use outside of the Commonwealth of Independent States (the Russian Federation and eleven other independent countries formerly part of the Soviet Union). This manufacturer has been operating for over 100 years, and was a supplier of smallpox vaccine used by the World Health Organization during the global eradication of smallpox in the 1970s.

Under the agreement with the Manufacturer, ABS plans to market the smallpox vaccine by first making it available for testing and evaluation by pharmaceutical companies, the U.S. Food and Drug Administration and other government agencies and regulatory authorities outside of the Commonwealth of Independent States. The terms of the sale of and specifications related to the smallpox vaccine will be negotiated with the Manufacturer.

With respect to both agreements, ABS plans to market the vaccines through one or more sub-distributors, or to form collaborative agreements with pharmaceutical companies that may arrange necessary testing and evaluation. The ability of the Company, and any of its sub-distributors or collaboratives, to sell the vaccines is subject to the results of testing and evaluation and the approval of government agencies and regulatory authorities in the relevant country or jurisdiction. ABS has not yet signed any agreements with a sub-distributor or pharmaceutical companies. ABS cannot predict if and when it will receive any revenues from sales of the vaccines. Each party is responsible for its own expenses and costs in connection with the agreements. ABS’ exclusivity under these agreements is contingent upon meeting certain obligations, including ABS’ effort to obtain necessary regulatory approvals for use in humans, and for the import and distribution of the vaccines. In the interest of confidentiality and security, the Association and the Manufacturer have asked not to be identified in press materials, but their identities will be available to the appropriate government authorities.

American Biogenetic Sciences, Inc., based in Copiague, NY, is a development stage company engaged in researching and developing diagnostic tests for cardiopulmonary conditions and treatments for neurological disorders, including epilepsy, migraine, mania, and Alzheimer's disease. As a developer of biogenetic technologies and compounds, ABS to date has been issued over 75 patents, both US and foreign, and there are over 100 patents pending.

Note Regarding Forward-Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this press release that are not historical facts are forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: the results of testing and evaluation of the vaccines; the ability of the Company to obtain necessary government agency and regulatory approvals of any of the vaccines and the extended time and expense necessary to obtain such approvals; the resulting time required to obtain revenues from vaccines; the ability of vaccine manufacturing facilities in Russia to meet all quality and manufacturing practices required for distribution; the presence of potentially negative side-effects and concerns regarding the efficacy of and lack of experience by the regulators with the specific human vaccines which may inhibit approval for sale in the United States or certain other countries; the Company’s lack of experience with these types of vaccines; the ability to consummate necessary agreements with additional manufacturers and with sub-distributors, and to make sales of the vaccines and other biological products; the activities of competitors; changes in regulations applicable to biological products and human vaccines and the administration of such regulations; the general condition of the economy; and other risks detailed in the Company's Securities and Exchange Commission (SEC) filings. In addition, a discussion of the risks and uncertainties related to the Company's other areas of business are detailed in the Company's SEC filings, including its annual report or Form 10-K. The words "intend," "expect," "anticipate," and "plan" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.

 


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