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  FOR IMMEDIATE RELEASE

Agennix Composition of Matter Patent on Recombinant Human Lactoferrin Upheld in Europe

HOUSTON - March 9, 2004 - The European Patent Office's Technical Board of Appeal has decided in favor of Agennix Inc., in litigation over its European patent covering the cDNA sequence and expression of recombinant human lactoferrin (rhLF).

Agennix's European patent number 0471011, which covers the cDNA sequence for human lactoferrin along with its recombinant expression in any eukaryotic cell, had been opposed by Pharming Group NV of the Netherlands. This patent emerged successfully from the opposition process after an oral hearing in Munich on December 2, 2003. All of Agennix's patent claims were upheld.

During the hearing, Agennix offered arguments supporting the novelty of its cDNA sequence and countered claims that the patent lacked an inventive step. The Technical Board of Appeal, which is the highest and final authority on European patents, found the patent and all of its claims to be valid and enforceable. The case is now officially closed.

Rick Barsky, CEO of Agennix, said today, "We are pleased with the decision. This substantially strengthens our patent position in Europe and confirms the validity of our rhLF composition of matter and production patents worldwide. Our intellectual property is a valuable asset that we will continue to protect as we advance our clinical development of rhLF."

About Agennix:

Agennix, a privately owned Houston-based biopharmaceutical company, is the world leader in the development of recombinant human lactoferrin (rhLF), a natural immunomodulatory protein. Oral rhLF has demonstrated human clinical and preclinical efficacy in treating cancer, and preclinical efficacy in treating asthma and accelerating wound healing. Agennix is the first and only company to manufacture substantial quantities of human lactoferrin and holds global patents on its technology, with over 71 issued patents, and more than 50 pending patents. Agennix has six Phase II human clinical trials currently underway in the treatment of cancer, asthma, and diabetic foot ulcers.

More information about Agennix is available on the Company's web site at http://www.agennix.com.