Viragen International, Inc. is a biopharmaceutical company engaged in the research, development, manufacture and sale of a natural human alpha interferon product indicated for treatment of a range of viral and malignant diseases. The Company is a majority-owned subsidiary of Viragen, Inc. Viragen International produces a natural human alpha interferon product under the tradename of Multiferon from human white blood cells, also known as leukocytes. Multiferon is approved for the treatment of a range of infectious diseases and cancers in 10 countries. The Company operates through its foreign wholly owned subsidiaries, ViraNative AB (ViraNative), a Swedish company located in Umea, Sweden, and Viragen (Scotland) Ltd. (Viragen (Scotland)), a Scottish company located near Edinburgh, Scotland. ViraNative and Viragen (Scotland) house Viragen International's manufacturing and laboratory facilities. Multiferon is a natural, multi-subtype interferon alpha product developed as an alternative to synthetic (recombinant), single-subtype products. Natural interferon is the body's natural defense response to foreign substances, such as viruses, interfering with the viral growth and replication processes. Multiferon is approved for sale in Bulgaria, Chile, Mexico, Philippines and Sweden, as a second-line therapy for the treatment of diseases, in which patients show an initial response to recombinant alpha interferon followed by treatment failure. It is also approved for sale in Egypt, Hong Kong, Indonesia, Myanmar and South Africa, as a second-line therapy for the treatment of hairy cell leukemia and chronic myelogenous leukemia. During the fiscal year ended June 30, 2005 (fiscal 2005), the Company initiated, through its international partners, two clinical trials with Multiferon. Arriani Pharmaceuticals, in Greece, has initiated a trial using Multiferon for the treatment of patients with hepatitis C, who have failed to respond to treatment with recombinant interferon alpha. Laboratorios Pisa in Mexico, has initiated a trial using Multiferon for the treatment of patients with hepatitis C, who have failed to respond or who have relapsed from treatment with recombinant interferon alpha. In June 2005, Viragen International completed the production of validation batches of Multiferon in a pre-filled syringe (PFS) dosage form. The Company conducted a Phase II/III clinical trial in Germany, with its natural interferon alpha product for the adjuvant treatment of malignant melanoma. The preliminary results obtained in this study showed that adjuvant treatment with low doses of Viragen International's product, preceded by dacarbazine, significantly increases survival in high-risk resected cutaneous melanoma patients.

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