© Arbovax Inc Arbovax Arbovax ® Advanced technology for insect-borne virus vaccines

© Arbovax Inc Arbovax has a unique technology that modifies arthropod-borne viruses (arboviruses) preventing them from replicating in mammalian cells. The result is a distinct and novel platform approach to vaccine development.

© Arbovax Inc Arbovirus Vaccine Market Total annual market exceeds $1.0 billion –Market comprised of endemic populations, military personnel and travelers to affected areas (c. 50MM persons/year, billion at risk) –Dengue: $ billion –Sanofi “next blockbuster - €1 billion/year” –West Nile: $300 million –Japanese Encephalitis: $300 million –Yellow Fever: $50 million –Chikungunya: $50 million –Now a threat in Asia and Europe

© Arbovax Inc “From Swine Flu to Dengue Fever: Infectious Disease Risks on the Rise (Emory University 2009) “ Fourth consecutive year of unusually high infection rates” (WHO, 2008) “Vagabond Virus” Dengue fever is spreading and some think climate change is to blame… (Time, Dec 2007) Brazil 2008: 87 deaths and 93,000 sickened

© Arbovax Inc Arbovax is ideally positioned to take advantage of the increased interest in adult vaccines by large pharmaceutical companies and their continuing investment in biotechnology companies Both Merck and Novartis building vaccine plants in North Carolina. Recent acquisitions in the $ million range e.g. Intercell AG by Novartis 2007 Acambis by Sanofi 2009 Arbovax offers potential for high value exit in a similar range through acquisition or out-licensing in 3-5 years Opportunity

© Arbovax Inc Initial Target – Dengue Fever –Develop modified virus through mouse and primate testing to phase I clinical trials –Seek corporate partner(s) to conduct trials, manufacture and market final product Development of Additional Targets –West Nile, Chikungunya, Japanese Encephalitis, Yellow Fever –Equine and livestock applications, offers potential for veterinary spin-off Business Model Business Model

© Arbovax Inc Technology Platform Technology –Potential to address all 200+ insect-borne viral diseases –Produces modified virus that will reproduce in insect cells but not mammalian cells –Resulting virus produces strong immune response without onset of disease Initial Proof of Principle completed using Sindbis arbovirus –Produced protective immunity in mice Strong IP 3 issued patents cover worldwide commercialization of the technology

© Arbovax Inc MT-1MT-2 ET-1 ET-2 Capsid Envelope RNA Arbovax Platform Technology Arbovax technology targets only the transmembrane portion of the virus retaining all other immunologically important characteristics “Host-Range Mutation”

© Arbovax Inc Three Dengue 2 Host-Range mutants tested in mouse model Showed excellent neutralizing antibody response –These will be tested in non-human primate model in April 2010 to demonstrate actual protection Dengue 1,3&4 will mirror Dengue 2 protection –Follow same development pathway Dengue Fever Dengue Fever

© Arbovax Inc Mouse Data Mice injected with 29µg total protein – (approx ffu/mouse) Both mutants generate higher immune response than WT; this is consistent with Sindbis data.

© Arbovax Inc Competitive Advantage CompanyTechnology ArbovaxHost-Range Mutation GSK/WRAIRLive Attenuation NIH CDC/Inviragen/Shanta Sanofi-Pasteur Chimera Hawaii biotechSubunit CytosVLP

© Arbovax Inc Competitive Advantage TechnologyAttributes Host-Range Mutation Single shot Long lived protection-provides all epitopes of virus No reversion to wild type Cost effective Live AttenuationRequires multiple shots Risk of reversion to wild type Limited protection ChimeraRequires multiple shots Limited protection Costly SubunitRequires multiple shots Limited protection Costly VLPVery early stage

© Arbovax Inc Malcolm Thomas, Founder, President & CEO Stemco, Guava, Bayer Biologicals, Becton Dickinson VP/GM BD Asia Pacific $50MM Regional Business Unit Jonathon Lawrie Ph.D., Founder & Director Venafair, Stemco, Cardiovascular Diagnostics, Codon, Becton Dickinson, Roche Diagnostics Dennis Brown Ph.D., Founder Professor and Department Head of Molecular & Structural Biochemistry at North Carolina State University since 1997 Kathy Smith PhD, Senior Scientist Molecular biologist UVA Kavita Nanda PhD, Senior Scientist Biochemist NCSUTeam

© Arbovax Inc Initial Round $1.5 million Piedmont Angel Network Research Development Foundation Mario Family Partners Jefferson Corner Group Management Additional support: NC Biotechnology Center Series A Funding

© Arbovax Inc Jan 2008 – 4800 sq/ft laboratory near NC State Over 50 Dengue 2 modifications produced to date Signed 5 year CRADA with US Army Dengue & West Nile Joint research agreement with Immunobiosciences Inc West Nile and Chikungunya development initiated –NCSU BL3 facility –3 federal grant applications submitted –Tested Dengue 2 clones in mouse model Series A Milestones

© Arbovax Inc Series B Funding $2.0 million at pre-money of $4.0 million Dengue 2 non-human primate testing Dengue 1,3,4 deletion mutant development Dengue mouse testing and serotype optimization Chikungunya and West Nile animal testing

© Arbovax Inc Summary Experienced management team Innovative, proprietary platform technology Proof of principle completed Market size >$1.0 billion Committed inside investors High value exit expected within 3-5 years North Carolina qualified business venture