Melbourne, Australia, 18 February 2008 – Virax Holdings Limited (ASX: VHL) today announced it had raised $1.88 million through its most recent rights issue of convertible notes.

Commenting on the capital raising today, Virax CEO, Dr Larry Ward, said “With this support from our existing and new shareholders, we are in a position to continue with the new Boards strategy of investigating a corporate transaction with another vaccine or related technology company to broaden the development program pipeline and create a balanced portfolio with respect to risk and reward. Additionally, we are able to further operate and protect the valuable Transgene sub-license and progress the South African trial of VIR201 using non-dilutive external funding”.

The maximum amount to be raised under the Issue was $2,683,814. The Company is finalising the Shortfall Placement Agreements as previously announced and is assessing the benefit of further shortfall placements pursuant to the Prospectus dated 19 December 2007.

Due to a complication on the Bpay facility towards the end of the Offer, any shareholders that were unable to process their application(s) that would like to take up their entitlement are invited to contact either Computershare or Virax’s office to discuss their application.

A summary of applications received to close of business Friday 15 February is provided below.

Convertible Note Holding Statements and Certificates
Holding statements and certificates (where applicable) will be despatched to security holders today.

Convertible Notes VHLG’s
The ASX advise that the Notes to be issued pursuant to this raising will have the ASX code “VHLG”. The associated terms and conditions attached to the Notes can be found in the Prospectus. The Notes will commence trading tomorrow, Tuesday 19 February 2008.
For further information regarding this announcement contact:

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 chronic infectious diseases and cancer. 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.

In March 2007 Transgene (Eurolist Paris: FR0005175080) executed a Licence Agreement with the Company for access to Co-X-Gene™ technology for use in two of Transgene’s immunotherapeutic products. These are TG4001 – a treatment for pathologies relating to human papilloma virus (HPV) infection that can lead to cervical cancer - and TG4010 – a treatment for non-small cell lung cancer. This was reported to the ASX in the Company’s announcement of 13 March 2007 and is referred to as the “Transgene Sub-licence”. Both TG4001 and TG4010 are in advanced development with Phase III trials of TG4001 planned for 2008 and Phase IIb studies of TG4010 currently underway. Transgene has licensed TG4001 to the pharmaceutical company Roche for treatment of HPV related pathologies.

For further information contact:
Dr Larry Ward
CEO, Virax Holdings Limited
Melbourne, Australia
(03) 9854 6230

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