Microbix and Hunan Provincial Government Initiate Work on Development of New Influenza Vaccine Manufacturing Complex in China



    TORONTO, July 8 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) announced
today it has selected an internationally-recognized architectural and
engineering firm to develop the initial scope of work and engineering analysis
for the construction of the new influenza vaccine complex to be built in Hunan
Province, China.
    Funded by the Government of Hunan and managed by Microbix, this phase of
the project is expected to get underway this month. "We're delighted to be
moving forward with the first stages of work leading to the construction of
the plant. It is very rewarding to see this project transition from an idea to
reality," said Microbix CEO and Chairman William J. Gastle.
    The jointly-owned facility will be located in the Hunan Liuyang
Biomedical Industrial Park near the province's capital city of Changsha. The
$200-million complex will incorporate Microbix' proprietary VIRUSMAX-
technology and will be one of the largest flu vaccine production facilities in
the world.
    The joint venture has received a commitment for more than 100 million
doses from the Province of Hunan - a contract worth in excess of $500 million
and one of the largest single commitments for flu vaccine ever made.
    The Hunan Government has also committed $100 million to the project,
representing half of the required funding, with the balance being raised by
Microbix through licensing partners.
    "The announcement of our partnership with the Hunan Government last month
attracted attention from the international pharmaceutical industry which
expressed interest in working with us," Gastle noted.
    Microbix will receive management fees during the design, development and
commissioning phases of the project, and then will receive royalty payments on
sales of vaccine. The company also has exclusive marketing rights outside
China.
    This project is the result of a four year, multi-million dollar
investment in technology in Canada, and it is Microbix' intention to
strengthen and expand its VIRUSMAX(TM) platform so it can enter into similar
projects in other countries.

    Microbix specializes in the development of biological technologies and
commercializing them through global partners. The Company has intellectual
property in large market biotherapeutic drugs, vaccine technologies and animal
reproduction technologies. Established in 1988, Microbix is headquartered in
Toronto.

    This press release contains forward-looking statements, which are subject
to risks and uncertainties that could cause actual results to differ
materially from those set forth in the forward-looking statements, including
risks generally associated with commercializing and producing the vaccine in
China; risks associated with economic conditions; risks relating to obtaining
financing including price, cost and timing; risks generally associated with
specialized engineering-related construction projects; risks related to sales,
sale values and volumes and product pricing; and other risks including but not
limited to, currency exchange rates and restrictions on foreign exchange; high
rates of inflation; renegotiation or nullification of existing licenses,
permits and contracts; changes in taxation policies; risks associated with
repatriation of profits and governmental regulations. These forward-looking
statements represent the judgment of Microbix as of the date of this press
release. This press release is as of July 8, 2008 and Microbix disclaims any
intent or obligation to update these forward-looking statements.

    %SEDAR: 00004220E




For further information:

For further information: visit www.microbix.com or contact: Phil
Casselli, President, Microbix Biosystems Inc., (416) 234-1624 x 224; Robert
Stephens, PR POST, (416) 777-0368

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