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Discarded Leukocytes Are
Potential Source for Treating Hepatitis C

September 9, 2003

You are about to review presentations, news releases, reports and/or filings of Pall Corporation that contain time-sensitive information. The information contained therein is only accurate as of the date thereof. Pall Corporation will not be reviewing or updating the material that is contained in these items after the date thereof. The information contained therein may be updated, amended, supplemented or otherwise altered by subsequent presentations, news releases, reports and/or filings by Pall Corporation.

Pall and Viragen Sign Agreement to Recover White Blood Cells from Blood Filters; Discarded Leukocytes Are Potential Source for Treating Hepatitis C

East Hills, NY and Plantation, FL - January 31, 2000 - Pall Corporation (NYSE: PLL) and Viragen, Inc. (AMEX: VRA) announced they have entered into a development and licensing agreement to recover white blood cells (leukocytes) from blood filters. Pall will grant exclusive, worldwide license (except Japan) to proprietary technology that will enable Viragen to efficiently remove and recover leukocytes from used leukoreduction filters. The goal is to provide additional sources of leukocytes for Viragen's production of interferons for therapeutic use. Viragen's lead product, Omniferonâ„¢, a multi-subtype alpha interferon, is currently in Phase II clinical trials in Europe for the treatment of hepatitis C, a disease estimated to afflict tens of millions worldwide. Omniferonâ„¢ is derived from white blood cells using Viragen's unique manufacturing technology. Viragen has white blood cell sourcing agreements with various blood organizations including the American Red Cross, America's Blood Centers and the German Red Cross.

Sam Wortham, Medical Division President of Pall Corporation stated, "The recovery of leukocytes, now essentially a medical waste, and transforming them into a valuable pharmaceutical holds great promise. We are excited to work with Viragen as we expand our activities in biotechnology."

Most blood collected for transfusions is separated into red blood cells, platelets, and plasma. The remaining component called buffycoat consists of white blood cells. These cells fight disease and make the immune system function in the blood donor, but can cause adverse transfusion reactions in the transfusion recipient. White blood cells are traditionally sourced from buffycoats. Donor blood can be leukocyte reduced by filtration to remove the donor's white blood cells and protect the transfusion recipient.

"Blood centers normally discard blood filters after each use. The potential access to all filtered white blood cells increases Viragen's capability to maximize production of Omniferon," said Gerald Smith, Chairman & CEO of Viragen. "This agreement with Pall may now provide us with additional quantities of white blood cells especially as leukoreduction continues to grow as the standard for blood collection agencies."

The agreement with Viragen represents the first license granted by Pall's Cell Therapy Group. The Group is focused on utilizing Pall's extensive technology portfolio and expertise in blood filtration and separation to serve such areas as molecular biology and drug discovery (including DNA and protein detection procedures), stem cell and cord blood research and other applications in cell harvesting and purification, adoptive immunotherapies and cytokine production.

About Pall Corporation
Pall is the leader in the rapidly growing filtration and separations industry. Pall serves customers throughout the health care and industrial marketplace, including leading edge products for use in transfusion medicine, biopharmaceuticals, semiconductors, municipal drinking water, aerospace and a host of other industries. Pall blood filters are used in all ten countries that have mandated universal leukocyte reduction and in the 14 countries, including the U.S., that are moving toward routine blood filtration.

In addition to blood filtration, Pall is involved in extensive research and development in many other areas of blood safety including co-developing INACTINEâ„¢ Pathogen Inactivation Technology with V.I Technologies, currently in Phase II clinical trials. The INACTINEâ„¢ Pathogen Inactivation Technology uses chemistry targeted at nucleic acid to inactivate viruses, bacteria, and other pathogens in transfusion blood products. Pall has the exclusive marketing rights to INACTINEâ„¢ for both red cells and platelets.

Pall has annual sales of over $1.2 billion. The Company is headquartered in East Hills, New York and has operations in over 30 countries.

About Viragen, Inc.
Viragen, Inc. is engaged in the research, development and manufacture of immunomodulatory therapeutic products including natural human interferon and human monoclonal antibodies for the treatment of various life-threatening and debilitating diseases such as hepatitis B & C, multiple sclerosis and cancer.

In addition to developing a portfolio of proprietary drug products, Viragen is engaged in a project to deliver efficient alternatives to the biotech and pharmaceutical industry for the large-scale production of proteins and monoclonal antibodies necessary for drug development and their commercialization.

Viragen has signed a collaborative agreement with the Roslin Institute, the internationally renowned center for biotechnology known for their creation of "Dolly the Sheep." Viragen has been granted a worldwide exclusive license by the Roslin Institute to their avian (bird) technology to enable Viragen to produce drugs, including monoclonal antibodies to fight cancer and other life-threatening diseases, inside the eggs of specially created transgenic chickens. Vast amounts of novel and powerful drugs are required to treat many diseases for which there is currently very limited production capacity. Avian technology will target the production of Viragen's portfolio of anti-cancer drugs as well as address the needs of the entire biotech and pharmaceutical industry for large-scale protein and monoclonal antibody production. The development of avian technology promises a much faster, cost-effective and virtually unlimited production process marked by the chicken's prolific egg laying capabilities.

Viragen's Oncology Project includes collaboration with Memorial Sloan-Kettering Cancer Center for the development of a human monoclonal antibody for the treatment of melanoma and other cancers. Viragen has also been granted a worldwide exclusive commercial license by the U.K.'s Cancer Research Campaign to develop a cancer vaccine for the treatment of several indications including breast, ovarian and colorectal cancers. The U.S. National Institutes of Health (NIH) have also granted Viragen an exclusive worldwide license for a technology to treat cervical, breast and lung cancers.

Produced in its Scottish facility, Viragen's lead product, Omniferon, is currently in Phase II clinical trials in Europe for hepatitis C, a disease estimated to afflict tens of millions worldwide. Viragen has a collaborative agreement with the Common Services Agency of the United Kingdom; preferential access to the white blood cells collected by the German Red Cross and America's Blood Centers; and a white blood cell agreement with the American Red Cross. Other Corporate collaborations include agreements with Merck-Biovation, Cryolife, Inc., Valentis, Inc. and Zonagen, Inc. The foregoing press release contains forward-looking statements that can be identified by such terminology such as "expects", "potential", "suggests", "may", "will", or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. In particular, management's expectations regarding future research development results could be affected by, among other things, uncertainties relating to clinical trials and product development; unexpected regulatory delays or government regulation generally; the Company's ability to obtain or maintain patent and other proprietary intellectual property protection; and competition in general.

Company Contacts:

Pall Corporation:

Judy Angelbeck, Ph.D. Senior Vice President, Cell Therapy Division
(516) 484 3600 ext. 4066; E-mail:

Diane Foster, Director of Investor Relations
(516) 484-3600 ext. 6109; E-mail:

For additional company information, please visit our web site at

Viragen, Inc.:

Mel Rothberg, Executive Vice President
Phone: (954) 233-8746 Fax: (954) 233-8743; E-mail:

Douglas Calder, Director of Communications
(954) 233-8746; Fax (954) 233-8743; E-mail:

For more information please visit our Web site at or contact "Company News On Call" at (800) 758-5804, followed by extension 116574.



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