Melbourne, Australia, 27 November 2007-- Virax Holdings Limited (ASX: VHL) advises that it is has formulated the terms of a fund raising of approximately $2.5 million and proposes to issue a prospectus in December 2007.

This would provide the Company with working capital to:

• properly avail itself of the prospective milestones and royalty payments under the Transgene Sub-licence;
  
• facilitate the South African program; and
  
• permit the timely completion of current discussions with parties interested in participating in the formation of a consolidated vaccine business.

The Company believes that the offer will be attractive however Shareholders should await the Prospectus that will contain the full details of the offer.

The Directors are confident that the offering will be well received and supported and as a result permit the Company to achieve the abovementioned objectives.

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 African 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 has completed GMP production and ready to commence clinical trials upon receipt of appropriate 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 -TG 4001 and TG - 4010.

Virax continues to work 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

John Morrison
CFO, Virax Holdings Limited
Melbourne, Australia
(03) 9854 6230
+61 3 9854 6230