XOMA (US) LLC Designated As A Subcontractor iIn 5-Year National Institute of Allergy, Infectious Disease Effort To Develop Therapeutic Agents

BERKELEY, CA -- (MARKET WIRE) -- November 07, 2006 -- XOMA Ltd. (NASDAQ: XOMA) today announced that it has been designated as a subcontractor under a prime contract between SRI International (SRI) of Menlo Park, California, and the National Institute of Allergy and Infectious Diseases (NIAID). XOMA and SRI are negotiating the final terms of the subcontract, which will run for 5 years and is expected to reach as much as $28.1 million. Under the subcontract, XOMA would manufacture a variety of monoclonal antibody therapeutic agents of importance to NIAID. Successful negotiation of the new subcontract would, if the full $28.1 million were funded, bring the total of XOMA’s governmental contract awards to approximately $60 million since March of 2005.

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