Exhibit 99.1

             VaxGen Issues Statement on Clinical Trial Data Analysis

BRISBANE, Calif., Feb. 27 -- In response to media inquires, VaxGen, Inc. issued
the following statement:


VaxGen's analysis of data from its Phase III clinical trial of AIDSVAX B/B
followed a statistical analysis plan that was agreed on in advance with the U.S.
Food and Drug Administration (FDA). The statistical analysis plan included
analyses of various subgroups, including racial backgrounds. The results VaxGen
reported on Monday remain accurate as stated, and the analysis continues.

The number of required adjustments for VaxGen's subgroup analyses is subject to
interpretation and there are a variety of methods to calculate those
adjustments. The company cannot predict the impact these adjustments may have on
the findings since that determination will ultimately rest with regulatory
authorities.

Furthermore, potential utility of the candidate vaccine will be evaluated based
on the full range of observations including primary and secondary endpoints,
correlates of protection and other aspects of the immune response. VaxGen is
currently focused on analyzing these factors, as well as discussing the data and
the need for any additional studies with the U.S. Centers for Disease Control
and the FDA. VaxGen plans to report additional results at the Keystone Symposia,
March 29 - April 4th.

This press release contains "forward-looking statements" within the meaning of
the federal securities laws. These forward-looking statements include without
limitation, statements regarding the outcome of any further analysis of the
clinical data from this AIDSVAX trial, the timing and progress of completion of
development efforts for AIDSVAX, the need for additional clinical trials to
support licensure of AIDSVAX and the timing or ultimate outcome of FDA approval
of AIDSVAX for use by individuals in racial subgroups or more broadly. These
statements are subject to risks and uncertainties that could cause actual
results and events to differ materially from those anticipated. Reference should
be made to VaxGen's Quarterly Report on Form 10- Q, filed with the Securities
and Exchange Commission on November 14, 2002, under the heading "Risk Factors"
and to VaxGen's Annual Report on Form 10-K, filed with the Securities and
Exchange Commission on April 1, 2002, under the heading "Business" for a more
detailed description of such factors. Readers are cautioned not to place undue
reliance on these forward-looking statements that speak only as of the date of
this release. VaxGen undertakes no obligation to update publicly any
forward-looking statements to reflect new information, events, or circumstances
after the date of this release except as required by law.