Calypte Launches International Manufacturing Initiative of its Rapid HIV Type 1 and HIV Type 2 Tests Announces License and Supply Agreement with Adaltis, Inc. ALAMEDA, Calif., April 1 /PRNewswire-FirstCall/ -- Calypte Biomedical Corporation (BULLETIN BOARD: CYPT) a company engaged in developing rapid tests for HIV diagnosis and the developer and marketer of the only two FDA-approved HIV-1 antibody tests that can be used on urine samples, as well as an FDA-approved serum HIV-1 antibody Western Blot supplemental test, today announced that it has entered into an agreement with Adaltis, Inc. to license and supply certain peptides to Calypte that are owned by Adaltis for the use in the Company's immunodiagnostic assays. The first application for the peptides will be in the Company's HIV rapid diagnostic tests currently under development. The agreement provides Calypte with the supply of key, patented HIV-Type 1 and HIV-Type 2 ("HIV-1/2") peptides by Adaltis. Calypte's non-exclusive license to Adaltis' peptide sequences provides the Company total freedom to operate throughout the world, with the exception of Canada, where Calypte would work with Adaltis in its home territory. Calypte is licensing the right to market and sell the peptides as part of the development of its rapid HIV diagnostic test products. Dr. J. Richard George, President and CEO of Calypte stated, "We have used the Adaltis HIV-1/2 peptides in the field trials of our rapid tests in Thailand. Their consistency provides the foundation necessary to achieve the high levels of performance we require for both specificity (false negatives) and sensitivity (false positives). Our field trials have included our blood rapid HIV-1/2 test for which we filed an Investigational Device Exemption Application (IDE) in the US last November, as well as our urine rapid HIV-1/2 test. We have also tested the product in house with other fluids and are pleased with the initial results from both a specificity and sensitivity perspective and are planning to include this additional product in our upcoming field trials later this month." Dr. George added, "In the community of like sciences, we were encouraged to see that OraSure received FDA approval for their laboratory based rapid oral fluid test for HIV-1. Once our non-laboratory based rapid tests are out of development and into production, we initially plan to distribute them outside the United States. We believe that Calypte's products will soon have world appeal, and after we have introduced our tests internationally, we expect to file for FDA approval for marketing in the US as well. However, our current focus is Sub-Saharan Africa and the "next wave" emerging HIV epidemic countries where the problem is more widespread -- including, China and Russia." Tony Cataldo, Executive Chairman of Calypte stated, "As Calypte pursues the development of its rapid HIV-1/2 tests, we believe we are now far enough along in our development to begin finalizing the necessary agreements and to start transferring the technology to commercial scale manufacturing. The largest markets in the world are the emerging markets and we believe we are now well positioned to serve those markets. " Calypte currently has a non-exclusive worldwide distribution agreement with Adaltis Inc. of Montreal, Canada for the distribution of Calypte's serum HIV-1 Western Blot test. First International Manufacturing Initiative in Thailand Calypte is preparing for its first foreign manufacturing technology transfer and today also announced that it has signed a Memorandum of Understanding with Thailand-based Pacific Biotech Co., Ltd. to act as Calypte's initial international manufacturer for both its urine and blood rapid tests. Manufacturing will be located at the Pacific Biotech facility in Phetchaboon, Thailand and a formal agreement is expected to be finalized around the middle of April. Commenting on this arrangement, Dr. George stated, "I have been familiar with the capabilities of PacificBiotech for several years, and have had past personal experience with them as an ISO 9001 certified contract manufacturer for rapid assays. Our recent audit of their facilities and quality systems tells me that they are an experienced and quality-minded organization that is eminently qualified to manage the manufacturing task ahead of them." Ninlawan Pichayayothin, President of Pacific Biotech, stated, "The technologies and quality systems involved in this project are very familiar to us. We are confident that we can manufacture the Calypte tests at our facility in both the quality and quantity demanded." Separately, Calypte confirmed that it continues its focus on China, which the Company believes will be its largest market. Beijing Calypte Biomedical Technology Ltd., the Company's joint venture with Marr Technologies Limited, Calypte's business partner and affiliate of Marr Technologies BV, which owns 28% of Calypte's common stock, has begun negotiations that are expected to lead to a manufacturing joint venture in China that will be controlled by Beijing Calypte. The Company is optimistic that this manufacturing relationship could facilitate a quick regulatory approval process in China. About Adaltis: Adaltis Inc. is a privately held company headquartered in Montreal, Canada, and in addition to its Canadian operations, operates its own affiliates in the USA, Italy and Germany, as well as an extensive network of over 60 sub-distributors around the world. About Pacific Biotech: Pacific Biotech manufactures high quality diagnostic products to serve the healthcare market world wide on both an OEM basis and under its own brand. It has built a strong reputation for premium quality product and superb customer services for over a decade. Pacific Biotech products and services meet the Thai FDA compliance standards and ISO9001. With the strong support from the Board of Investment and National Science and Technology Development Agency, Pacific Biotech is a model of cooperation between the government and private sectors in promoting the development of a Thai biotechnology industry. Pacific Biotech's products are based on rapid immunochromatographic technologies, and include tests for reproductive hormones, drugs of abuse, and markers ofinfectious disease. About Calypte Biomedical: Calypte Biomedical Corporation, headquartered in Alameda, California, is a public healthcare company dedicated to the development and commercialization of in vitro diagnostic tests, primarily for the detection of antibodies to Human Immunodeficiency Virus (HIV), and other sexually transmitted and infectious diseases. Calypte's currently marketed laboratory-based tests include an enzyme immunoassay (EIA) HIV-1 antibody screening test and an HIV-1 antibody western blot supplemental test, the only two FDA-approved HIV-1 antibody tests for use on urine samples, as well as an FDA-approved serum HIV-1 antibody western blot supplemental test. Calypte is actively engaged in developing new test products for the rapid detection of HIV and other infectious diseases. Calypte believes that there is a significant need for rapid detection of such diseases globally to control their proliferation, particularly in lesser-developed countries, which lack the medical infrastructure to support laboratory-based testing. Calypte believes that testing for HIV and other infectious diseases may make important contributions to public health. Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, the Company's ability to obtain additional financing and access funds from its existing financing arrangements that will allow it to continue its current and future operations and whether demand for its test products in domestic and international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the Company's success are more fully disclosed in the Company's most recent public filings with the U.S. Securities and Exchange Commission ("SEC"), including its annual report on Form 10-KSB for the year ended December 31, 2003 and its subsequent filings with the SEC. DATASOURCE: Calypte Biomedical Corporation CONTACT: Investor Relations - Tim Clemensen for Calypte Biomedical Corporation, +1-212-843-9337,

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