AMEX Approves Viragen's Compliance Plan And Grants Trading Extension Into 2007

PLANTATION, Fla., Oct. 31 /PRNewswire-FirstCall/ -- Viragen, Inc. today announced that the American Stock Exchange (Amex) has approved the Company's recently submitted compliance plan and has granted a conditional extension to continue its listing on the Amex.

On September 22, 2005, Viragen disclosed that it had received a deficiency letter from the Amex, dated September 20, 2005, advising that the Company is not in compliance with continued listing standards. In order to maintain its listing, Viragen was required to submit a compliance plan by October 20, 2005 advising the Amex of action it has taken, or will take, that would bring it back into compliance with continued listing standards. The plan was confirmed as being received by Amex on October 19, 2005.

On October 25, 2005, the Amex notified Viragen that it approved the Company's plan of compliance and granted an extension until March 20, 2007 to regain compliance with the continued listing standards. The Company will be subject to periodic review by Amex Staff during the extension period and failure to make progress consistent with the plan or to regain compliance with the continued listing standards by the end of the extension period could result in the Company being delisted from the Amex.

Specifically, based on Viragen's financial statements for its fiscal year ended June 30, 2005, the Company is not in compliance with Section 1003(a)(ii) of the Amex Company Guide with stockholders' equity of less than $4,000,000 and losses from continuing operations and/or net losses in three out of its four most recent fiscal years and Section 1003(a)(iii) with stockholders' equity of less than $6,000,000 and losses from continuing operations and/or net losses in its five most recent fiscal years.

In other news, Viragen provided an update on the impact from Hurricane Wilma. The Company reports that its employees and families are safe, and there is no serious physical damage at its South Florida headquarters. However, there are still widespread power outages, and stockholder relations have been temporarily interrupted. We appreciate your patience and understanding during this time of crisis, and we will respond to inquiries as soon as possible.

About Viragen, Inc.:

With global operations in the U.S., Scotland and Sweden, Viragen is a biotechnology company engaged in the research, development, manufacture and commercialization of pharmaceutical proteins for the treatment of viral diseases and cancers. Our product portfolio includes: Multiferon(R) (multi- subtype, natural human alpha interferon) targeting a broad range of infectious and malignant diseases; and humanized monoclonal antibodies targeting specific antigens over-expressed on many types of cancers. We are also pioneering the development of Avian Transgenic Technology as a revolutionary manufacturing platform for the large-scale, efficient and economical production of human therapeutic proteins and antibodies.

Viragen, Inc. Corporate Contact: Douglas Calder, Director of Communications Phone: (954) 233-8746; Fax: (954) 233-1414 E-mail: dcalder@viragen.com

The foregoing press announcement contains forward-looking statements that can be identified by such terminology such as "expect," "potential," "suggests," "may," "should," "could" or similar expressions. Such forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. In particular, management's expectations regarding future research, development and/or commercial results could be affected by, among other things, uncertainties relating to clinical trials and product development; availability of future financing; unexpected regulatory delays or government regulation generally; the Company's ability to obtain or maintain patent and other proprietary intellectual property protection; and competition in general. Forward-looking statements speak only as to the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Photo: http://www.newscom.com/cgi-bin/prnh/20010426/HSTH018LOGO-bAP Archive: http://photoarchive.ap.orgPRN Photo Desk, photodesk@prnewswire.comViragen, Inc.

CONTACT: Douglas Calder, Director of Communications, Viragen, Inc.,+1-954-233-8746, or fax, +1-954-233-1414, or dcalder@viragen.com

Web site: http://www.viragen.com/