GenVec Announces Increased Funding for FMD Vaccine Program from the U.S. Department of Homeland Security

GenVec, Inc. (Nasdaq:GNVC) announced today that it has executed the first option period from the previously announced agreement with the U.S. Department of Homeland Security (DHS) that will provide $5.6 million over the next 12 months to support the development of vaccines for the prevention of foot-and-mouth disease (FMD). This funding increases the total value of GenVec’s three-year agreement from $15.2 million to $17.5 million. The additional funds will be used primarily for expanded development activities. Under the terms of the agreement, GenVec is responsible for the development, production and regulatory approval of the vaccine, while DHS is responsible for conducting animal studies at the Plum Island Animal Disease Center. "This additional funding under our contract with the DHS and the U.S. Department of Agriculture-Agricultural Research Service (USDA-ARS) confirms the high interest in the FMD program, and will enable us to advance our efforts to ready a vaccine for regulatory approval,” stated Douglas J. Swirsky, GenVec’s Chief Financial Officer. The FMD vaccine being developed by GenVec scientists in collaboration with the ARS and the DHS's Targeted Advanced Development unit (TAD) is unique in several ways. This vaccine, initially constructed and tested by ARS, is the first molecular-based FMD vaccine for cattle, and allows differentiation of infected animals from vaccinated animals, which is critical information in the event of an outbreak. The vaccine utilizes GenVec’s proprietary adenovector technology and is manufactured on a proprietary 293-ORF6 based cell line that is capable of producing antigens without the use of the highly contagious FMD virus. Because the vaccine is produced without using live or killed virus materials, it can be safely produced in the U.S. About GenVec GenVec, Inc. is a biopharmaceutical company developing novel therapeutic drugs and vaccines. GenVec’s lead product, TNFerade™ is currently in a pivotal clinical study (PACT) in locally advanced pancreatic cancer. Additional clinical trials are in progress in rectal cancer, head and neck cancer and melanoma. GenVec also uses its proprietary adenovector technology to develop vaccines for infectious diseases including HIV, malaria, foot-and-mouth disease, respiratory syncytial virus (RSV), and influenza. Additional information about GenVec is available at www.genvec.com and in the company’s various filings with the Securities and Exchange Commission. Statements herein relating to future financial or business performance, conditions or strategies and other financial and business matters, including expectations regarding future revenues and operating expenses, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. GenVec cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Factors that may cause actual results to differ materially from the results discussed in the forward-looking statements or historical experience include risks and uncertainties, including the failure by GenVec to secure and maintain relationships with collaborators; risks relating to the early stage of GenVec’s product candidates under development; uncertainties relating to clinical trials; risks relating to the commercialization, if any, of GenVec’s proposed product candidates; dependence on the efforts of third parties; dependence on intellectual property; and risks that we may lack the financial resources and access to capital to fund our operations. Further information on the factors and risks that could affect GenVec’s business, financial conditions and results of operations, are contained in GenVec’s filings with the U.S. Securities and Exchange Commission (SEC), which are available at www.sec.gov. These forward-looking statements speak only as of the date of this press release, and GenVec assumes no duty to update forward-looking statements.