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DURHAM, NORTH CAROLINA, October 11, 2001 - Merix Bioscience, Inc. (Merix) announced today it has established a wholly owned subsidiary, Merix Germany GmbH, in Erlangen, Germany. Over the next 2 years Merix plans to invest more than $4 million in research and development, which will include the construction of a GMP manufacturing facility. The facility will be used for current dendritic cell research conducted at Erlangen, ongoing research and future pre-clinical and clinical trials focusing on Merix's proprietary RNA platform to treat cancer and other diseases.

Overseeing the research and future trials will be Dr. Gerold Schuler, Professor and Director of the Department of Dermatology, University of Erlangen-Nuremberg, Germany. Dr. Schuler is currently conducting the largest independent, university-based dendritic cell clinical trials in the world at the Medical Center at Erlangen University. His work will contribute to, and complement, the Merix clinical trial programs, which are based on the production of dendritic cell vaccines.

"Having a European presence and researcher of the caliber of Dr. Schuler interested in Merix's work in personalized cancer vaccines is significant," said Mark Weedon, President and CEO of Merix. "We had three goals and met them quickly these past six months. Our efforts to raise capital, put into place scientific teams that are world class and gain a foothold in the European market, have all been met. We believe that establishing this facility will enable us to access additional funds in European capital markets, and attract other leading European scientists and partner companies as we expand our original vision," Mr. Weedon continued.

Dr. Schuler is noted for his development of the concept of dendritic cell "maturation" as well as the identification of GM-CSF as the critical cytokine for generation of dendritic cells from hematopoietic precursors. His present research focuses on dendritic cell vaccination of tumors and immune disorders. He is a member of the Austrian Academy of Sciences. Dr. Schuler graduated as a M.D. at the University of Innsbruck, Austria, and received extensive post-doctoral training both in dermatology and immunology.

"As a long-time researcher in the study of dendritic cell therapy, it is rewarding to see Merix so committed to the development of this technology toward a viable commercial alternative to today's therapies. Their recent momentum toward this cause led me to partner with the Company, and aid in realizing this vision," said Dr. Schuler.

Stephen Elliston, the Company's vice president of business development, will act as Managing Director of Merix's German facility. Construction is expected to be complete by first quarter 2002. Funds to construct the facility were raised in a $39.5 million second round of international venture financing announced in September 2001.


Based in Munich, Hubert Birner, Ph.D., Principal with TVM and a Merix Board Member, commented, "Merix has quickly been able to establish an international presence in a competitive market. Working on this issue at such an early juncture should be looked upon favorably by the scientific, regulatory and financial communities as they get closer to commercialization."

About Merix
Merix Bioscience, Inc. is a private immunotherapy company poised to assume leadership in the large emerging market of cancer vaccines. The Company's proprietary platform technology encompasses methods to optimize the preparation of dendritic cells, methods for the antigen loading (transfection) of dendritic cells, and the application of the resulting vaccines in the treatment of cancer, chronic infectious diseases and immune disorders. Merix offers a unique and proprietary ability to produce a nearly limitless supply of individualized (autologous) vaccine for potentially every cancer patient, a vaccine created from the body's own dendritic cells pulsed with amplified messenger RNA (mRNA) from the patient's cancer (RNA-loaded DC vaccines).