Large Scale Biology Corporation Awarded Biowarfare Defense Research Program

VACAVILLE, CA -- (MARKET WIRE) -- 12/27/2004 -- Large Scale Biology Corporation (NASDAQ: LSBC) today announced receipt of Federal funds to expand the Company's participation in national biowarfare defense initiatives. The $1 million award will be used to develop more effective candidate products for prevention and treatment of biowarfare-related illnesses.

On August 5 of this year, President George W. Bush signed legislation into law that funds key Department of Defense (DoD) initiatives. Included in this package was a $1 million earmark for Large Scale Biology Corporation to employ its proprietary GRAMMR™ (Genetic ReAssortment by MisMatch Resolution) DNA shuffling and molecular evolution technology to help develop more effective candidate biopharmaceuticals for protecting military personnel and civilians in biowarfare situations.

This new appropriation is in addition to the $1 million in current funds that the Department of Defense has invested in LSBC to support the development of enhanced biowarfare therapies in collaboration with the U.S. Army Medical Research Institute of Infectious Diseases (USAMRIID) in Fort Detrick, Maryland. "Our ability to obtain this type of funding in a budget year with such tight fiscal constraints is evidence of the solid support the DoD has placed in one of LSBC's core technology platforms," said Ronald J. Artale, LSBC's Chief Operating Officer. "A great deal of credit must be given to Congressman George Miller of the 7th Congressional District, whose steadfast support and successful sponsorship of this appropriation will enable us to make important contributions to our national defense needs," Mr. Artale added.

LSBC is contributing two of its core technologies to this program, including the Company's GRAMMR™ directed evolution technology and its plant-based biomanufacturing system, which can be used together to rapidly optimize and produce therapeutic proteins and vaccines. LSBC has assembled an experienced team of scientists and business professionals to advance the boundaries of science by employing these proprietary systems for the improvement of global health.

"The combination of our proprietary molecular evolution technologies, our established plant-based biomanufacturing facilities and our clinical experience enables us to carry out research programs that are beyond the reach of most biotechnology companies our size," Mr. Artale concluded.

"Large Scale Biology is making an important contribution toward protecting America's armed forces in the battlefield, and I am pleased to be able to help them in this endeavor," said Congressman Miller. "Biological warfare is an unfortunate but real threat and we must be prepared for it," Miller added.

About LSBC

Large Scale Biology Corporation is a biotechnology company developing and biomanufacturing biotherapeutics, vaccines and industrial proteins for important life science industry markets. Corporate headquarters, molecular biology and product design laboratories are located in Vacaville, California, and the Company's bioprocess development and commercial-scale biomanufacturing facilities are located in Owensboro, Kentucky. In addition to its class-leading internal capabilities, LSBC relies on a network of industry, government and academic collaborators throughout the US and Europe to achieve rapid, commercially relevant product discovery, optimization and manufacturing. For more information about Large Scale Biology Corporation, visit the Company's website at www.lsbc.com.

This release contains forward-looking statements about applications of LSBC's technologies and potential markets for our products. These forward-looking statements involve risks, uncertainties and situations that may cause our actual results to differ materially from those implied by these statements, including our ability to commercialize one of our products, the ability of our collaborators to sell products we make for them, the effectiveness of our and our collaborators' technologies to produce specific products and/or in a cost-effective manner, any difficulties or delays in obtaining regulatory approval to test and market such products, and the requirement of substantial funding for us to preserve our technology base and product pipeline. We cannot guarantee future results. You should not place undue reliance on these forward- looking statements, which apply only as of the date of this release. For a further list and description of such risks and uncertainties see the reports filed by Large Scale Biology Corporation with the Securities and Exchange Commission, including our reports on Forms 10-K and 10-Q. Except as required by law, we do not undertake to update or revise any forward- looking statement, whether as a result of new information, future events or otherwise.

LSBC™, our logo, GENEWARE® and GRAMMR™ are trademarks of Large Scale Biology Corporation.

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Contact:
Large Scale Biology Corporation
Ronald J. Artale
Chief Operating Officer and Chief Financial Officer
(707) 446-5501


SOURCE: Large Scale Biology