CHIR Chiron (MM)

Chiron Corporation (NASDAQ:CHIR) today announced that the U.S. Department of Health and Human Services (HHS) agreed to extend delivery terms for a stockpile of H5N1 bulk influenza vaccine(1) for the U.S. government. In October 2005, Chiron announced that it had entered into a contract with the U.S. government to stockpile H5N1 bulk vaccine. Chiron is producing this stockpile at its facility in Liverpool, England, and expects to complete approximately 70 percent of the order before turning operations to annual production of FLUVIRIN(R) influenza virus vaccine in March. Chiron expects to recognize the revenue for the completed doses upon fulfillment of the contract. Chiron expects to resume work on fulfilling the contract following the conclusion of the FLUVIRIN vaccine campaign in the fall of 2006. As part of its avian influenza vaccine strategy, Chiron expects that it can manufacture avian influenza vaccines during the traditional break between seasonal influenza vaccine campaigns, finishing these activities in time for the seasonal influenza vaccine production to avoid interruption of the normal manufacturing cycle. About Chiron Chiron delivers innovative and valuable products to protect human health by advancing pioneering science across the landscape of biotechnology. The company works to deliver on the limitless promise of science and make a positive difference in people's lives. For more information, please visit www.chiron.com. About Chiron Vaccines Chiron Vaccines, the world's fifth-largest vaccines business, is headquartered in Oxford, United Kingdom, and has facilities located throughout Europe, the United States and Asia. Chiron Vaccines is the world's second-largest manufacturer of flu vaccines and has important meningococcal, pediatric and travel vaccine franchises. The company's portfolio of products includes vaccines for influenza, meningococcus C, rabies, tick-borne encephalitis, Haemophilus influenzae B (Hib), polio, mumps, measles and rubella (MMR) and diphtheria, tetanus and pertussis (whooping cough). This news release contains forward-looking statements, including statements regarding development and manufacturing of pandemic influenza vaccines, revenue from stockpiling programs, resumption of production of stockpile H5N1 bulk vaccine for the United States in the fall of 2006, and completion of the FLUVIRIN campaign by the fall of 2006 which involve risks and uncertainties and are subject to change. A discussion of the company's operations and financial condition, including factors that may affect its business and future prospects that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, is contained in documents the company has filed with the SEC, including the Form 10-K for the year ended December 31, 2004, and the Form 10-Q for the quarter ended September 30, 2005, and will be contained in all subsequent periodic filings made with the SEC. These documents identify important factors that could cause the company's actual performance to differ from current expectations, including, among others, litigation and investigations relating to influenza vaccines, the outcome of clinical trials, regulatory review and approvals, manufacturing capabilities and issues, intellectual property protections and defenses, litigation, stock-price and interest-rate volatility, and marketing effectiveness. In particular, there can be no assurance that additional issues with respect to influenza vaccines or Chiron's manufacturing generally will not arise in the future, or that Chiron will be able to timely complete the production of FLUVIRIN vaccine for the 2006-2007 influenza season, successfully develop, manufacture and receive approval to market new products (including H5N1 and other pandemic influenza vaccines), or achieve market acceptance for such new products. The company may face additional competition in the influenza market in the future and challenges in distribution arrangements as a result of vaccine developments. Chiron does not undertake an obligation to update the forward-looking information the company is giving today. (1) The stockpile vaccine is for government supply and is not approved for general sale. NOTE: FLUVIRIN is a registered trademark of Chiron.