Melbourne, Australia, 23 August 2007--Virax Holdings Limited (ASX: VHL) advises that it has received further payments from Transgene S.A. of Strasbourg, France, under the Transgene/Roche licence agreement in respect to their immunotherapeutic product TG4001. Payment was under the terms of the Virax-Transgene agreement announced by Virax to the market on 13 March 2007.

The Company confirms that it has received a net amount of AUD 1.014 million in respect to the licence milestone developments of 11 April 2007 and 1 June 2007 as foreshadowed in its advice to the market of 7 June.

In its announcement of 1 June, Transgene indicated that in addition to the €23 million to be received from Roche before the end of June 2007 it could expect to receive further milestone payments from Roche of up to 195 million Euros. Accordingly Virax expects to receive further payments from Transgene if this occurs.

Background
On 13 March 2007, Virax granted Transgene exclusive access to Virax’s Co-X-Gene™ technology patents for use in two of Transgene’s immunotherapeutic products. These products are currently in Phase IIb clinical trials for treating non small cell lung cancer, and in preparation for Phase III trials for the treatment of human papilloma virus (HPV) associated pathologies.

Under the terms of that agreement, Virax received an up-front licence fee and will share in fees and milestone payments received by Transgene in the event that it licenses out any of the products covered by the Co-X-Gene™ technology licence. Virax could receive up to US$12 million (excluding royalties) under the agreement (US$9 million for the TG 4010 non small cell lung cancer treatment, and US$3 million for the TG 4001 HPV treatment). In addition, Virax will receive a royalty on net sales of the licensed products in North America.

Bryan Garnier & Co Ltd (Manager of a public offering by Transgene) estimated peak annual sales of €250 million for TG4001 and €750 million for TG4010 in its “Emerging Growth Research Report” dated 6 June 2005.

Transgene entered into a licensing agreement with Roche for its HPV product TG 4001 on 11 April 2007.
As of this date Transgene has yet to announce a partnering or licensing arrangement for TG4010.


About Virax
Virax, based in Melbourne, Australia, is a biopharmaceutical company engaged in the discovery and development of novel immunotherapeutic products for the treatment of cancer, and chronic infectious diseases. The Company’s lead product, VIR201, an HIV/AIDS immunotherapeutic (therapeutic vaccine), recently cleared by the U.S. FDA to begin Phase II trials, has completed two successful clinical trials in Australia with additional, international studies planned. The Company has also submitted an application to the South African regulatory authority (MCC) to conduct a Phase I/IIa trial of VIR201. Funding for the trial has been contributed by a consortium of global and South African resource companies led by BHP Billiton.

Virax’s second product in development, VIR501, is an immunotherapeutic for the treatment of late stage hormone refractory prostate cancer. The Company commenced GMP production and is intending to commence Phase I/II trials in Australia in mid 2008 subject to available funding. The Company has licensed its Co-X-Gene™ technology to Transgene S.A. of Strasbourg, France for use in the USA and Canada for its immunotherapeutic products-TG4001 and TG 4010.

Virax continues to work with its International Biosciences Investment Bank on financial and strategic matters to develop potential partnering arrangements and financing options.

For further information contact:
Investors
David Beames
CEO, Virax Holdings Limited
(03) 9854 6230
+61 3 9854 6230

Media:
Tim Duncan
Hinton and Associates
03 9600 1979
0408 441 122