Chiron and LabCorp Sign Licensing Agreement for Hepatitis C Plasma Testing; Agreement Further Expands Licensing of Chiron Technology

Business Wire, Dec 3, 2004

EMERYVILLE, Calif. -- Chiron Corporation (Nasdaq:CHIR) and Laboratory Corporation of America(R) Holdings (LabCorp(R)) announced today that they have signed a licensing agreement for Chiron's hepatitis C virus (HCV) intellectual property for nucleic acid testing (NAT). The agreement gives LabCorp, including its subsidiary National Genetics Institute (NGI), a semi-exclusive license to use Chiron's patented HCV NAT technology in screening plasma donations in the United States, subject to existing licenses and certain conditions. As part of the licensing arrangement, LabCorp has also agreed not to challenge the validity or enforceability of certain Chiron HCV patents. Financial terms of the agreement were not disclosed.

"This license agreement and settlement attests to the significant scientific breakthrough Chiron scientists made by discovering the elusive virus responsible for hepatitis C. To date, Chiron has licensed more than 15 companies with its HCV technology, enabling these companies to find new ways to address the burden of HCV infection," said Gene Walther, acting president, Chiron Blood Testing. "We continue to work to enable companies to develop and market products that will reduce the toll from this life-threatening disease and prevent its transmission."

About Chiron

Chiron delivers innovative and valuable products to protect human health by advancing pioneering science across the landscape of biotechnology. The company works to deliver on the limitless promise of science and make a positive difference in people's lives. For more information about Chiron, please visit www.chiron.com.

This news release contains forward-looking statements, including statements regarding sales growth, royalties, product development initiatives, new product indications, new product marketing, acquisitions, and in- and out-licensing activities that involve risks and uncertainties and are subject to change. A full discussion of the company's operations and financial condition, including factors that may affect its business and future prospects, is contained in documents the company has filed with the SEC, including the form 10-K for the year ended December 31, 2003, and the form 10-Q for the quarter ended September 30, 2004, and will be contained in all subsequent periodic filings made with the SEC. These documents identify important factors that could cause the company's actual performance to differ from current expectations, including the outcome of clinical trials, regulatory review and approvals, manufacturing capabilities, intellectual property protections and defenses, litigation, stock-price and interest-rate volatility, and marketing effectiveness. In particular, there can be no assurance that Chiron will increase sales of existing products, successfully develop and receive approval to market new products, or achieve market acceptance for such new products. There can be no assurance that Chiron's out-licensing activities will generate significant revenue, nor that its in-licensing activities will fully protect it from claims of infringement by third parties. In addition, the company may engage in business opportunities, the successful completion of which are subject to certain risks, including shareholder and regulatory approvals and the integration of operations.

We do not undertake an obligation to update the forward-looking information we are giving today.