Chiron and ZymeQuest(R) form Partnership for Enzyme Conversion Of Red Blood Cells

Chiron and ZymeQuest(R) form Partnership for Enzyme Conversion Of Red Blood
Cells
- System would convert non-O red blood cells to universal-donor red blood cells
-


EMERYVILLE, Calif. and BEVERLY, Mass., Jan. 5  /PRNewswire-FirstCall/ -- Chiron
Corporation  and ZymeQuest(R) Inc. announced today that they have formed a
partnership to develop and commercialize ZymeQuest's enzymatic conversion
system, which converts groups A, B and AB red blood cells to enzyme-converted
group O (ECO(R)) red blood cells.  Under the terms of the agreement, Chiron will
share in the costs of developing and commercializing the enzymatic conversion
system.  In addition, Chiron will make an equity investment in ZymeQuest and
obtain worldwide marketing and commercial rights for the technology.  ZymeQuest
will continue to be responsible for developing and manufacturing its enzyme
conversion products.  Financial terms of the agreement were not disclosed.

"This agreement represents a major advance for Chiron in the realm of blood
safety," said Jack Goldstein, president, Chiron Blood Testing. "ZymeQuest's
innovative technology will fill a critical need for blood and transfusion
centers.  All group A, B, and AB red cells will be able to be converted to ECO,
which, along with Group O, can be transfused to all individuals without
transfusion reaction.  This technology will decrease the potential difficulties
associated with mismatched blood and also reduce inventory problems at blood
banks caused by shortages of group O red cells. In addition, the technology
could reduce the amount of donor blood discarded because of outdating.  This
partnership is another example of Chiron's commitment to looking for new ways to
meet the needs of our customers and helping improve blood safety worldwide."

"This alliance with Chiron is an important milestone for ZymeQuest," said
Douglas L. Clibourn, president and chief executive officer of ZymeQuest.  "By
assuring and maintaining a safe and adequate blood supply in a cost effective
manner, the delivery of an all group O and ECO inventory of red blood cells
could have a significant logistical and financial impact on the worldwide blood
delivery system.  Having the participation of a company with the international
stature of Chiron as a partner and as an equity investor will help us reach our
commercialization goals and our mission of transforming transfusion medicine."

About Universal Red Blood Cells

Group O red cells are known as universal red blood cells because they can be
transfused safely to recipients of any ABO blood group without the risk of
morbidity or mortality associated with a transfusion of incompatible red cells. 
Preliminary clinical trial results indicate that ECO red cells will function
like group O universal red cells.  A universally transfusable inventory of red
blood cells could decrease the cost and complexity of inventory management,
reduce the number of red cells lost due to outdating, and improve the safety of
red cell transfusions.

About Chiron Blood Testing

Chiron Blood Testing is dedicated to preventing the spread of infectious
diseases through the development of novel blood-screening tools that protect the
world's blood supply.  Chiron's Procleix(R) assays and systems, developed in
collaboration with Gen-Probe Incorporated, utilize state-of-the-art nucleic acid
testing (NAT) technology to detect RNA and DNA in donated blood, plasma, organs
and tissue during the very early stages of infection, when infectious agents are
present but cannot be detected by immunodiagnostic screening technologies. 
Through its joint business with Ortho-Clinical Diagnostics, Chiron also develops
and markets a line of immunoassay screening, diagnostic, and supplemental
hepatitis and retrovirus tests.  For more information about Chiron Blood Testing
visit http://www.ebloodbank.com/.

About ZymeQuest, Inc.

ZymeQuest, Inc., located in Beverly, Massachusetts, is a privately owned company
pioneering the discovery, development and commercialization of enzymatic blood
conversion products for use in transfusion medicine. ZymeQuest's technology is
based on the use of proprietary enzymes and state- of-the-art processes to
convert human red blood cells from blood groups A, B, and AB to enzyme converted
group O (ECO) cells.  For more information about ZymeQuest, visit the company's
website at http://www.zymequest.com/.

This news release contains forward-looking statements, including statements
regarding sales growth, product development initiatives and new product
marketing that involve risks and uncertainties and are subject to change.  A
full discussion of Chiron'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-Q for the
quarter ended September 30, 2003, and the form 10-K for year ended December 31,
2002, 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 outcomes
of clinical trials, regulatory review and approvals, manufacturing capabilities,
intellectual property protections and defenses, 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 activity will generate significant revenue, nor that its
in-licensing activities will fully protect it from claims of infringement by
third parties.

Consistent with SEC Regulation FD, we do not undertake an obligation to update
the forward-looking information we are giving today.

Note: Procleix is a trademark of Chiron Corporation.  ZymeQuest and ECO are
trademarks of ZymeQuest, Inc. 

DATASOURCE: Chiron Corporation



CONTACT:  Douglas L. Clibourn, President & CEO of ZymeQuest(R), Inc.,

[phone]; or Chiron Corporate Communications & Investor Relations,

Media, [phone], or Investors, [phone]; or Timothy D. Green of

Sharon Merrill Associates, Inc., [phone], or





Web site:  http://www.chiron.com/

http://www.ebloodbank.com/

http://www.zymequest.com/ 

Copyright