Exhibit 99.1

            VaxGen Opens Biopharmaceutical Manufacturing Facility in
                               South San Francisco

BRISBANE, Calif., June 23 -- VaxGen today announced that it has opened its new
biopharmaceutical manufacturing facility in South San Francisco, Calif. The
facility includes 17,000 square feet for the production of complex proteins made
through recombinant bacterial fermentation and mammalian cell culture. This type
of manufacturing is used to make vaccines, monoclonal antibodies and therapeutic
proteins. The new facility is designed to manufacture VaxGen's anthrax vaccine
and AIDS vaccine candidates, as well as other biopharmaceuticals.

"The dedication of this state-of-the-art manufacturing facility is a significant
milestone for VaxGen," said Lance K. Gordon, Ph.D., VaxGen's chief executive
officer. "It adds an important component to our late-stage product development
capability, including the capacity for commercial manufacturing. This is an
asset that few other development-stage biopharmaceutical companies share. With
process development activities underway, the facility is already supporting a
U.S. government contract to develop a recombinant anthrax vaccine."

The development of VaxGen's South San Francisco facility is part of VaxGen's
broader manufacturing strategy, which includes Celltrion, Inc., a joint venture
between VaxGen and South Korean partners Nexol Corp., KT&G and J. Stephen & Co.
Ventures Ltd. Under this joint venture, a 23-acre biologics manufacturing
facility is under development in Incheon, South Korea. "I believe this puts
VaxGen in an excellent position not only to develop its own products but to
partner with other biopharmaceutical companies," Gordon said.

The plant is being dedicated today. Attendees at the dedication ceremony are
expected to include South San Francisco Mayor Pedro Gonzalez, Congresswoman
Nancy Pelosi's Deputy District Director Dan Bernal, Congressman Tom Lantos'
representative Derek Myers, and State Assemblymember Gene Mullin's District
Director Geraldine O'Connor.

Adjacent to the company's research and development building, the South San
Francisco facility is designed to manufacture biopharmaceuticals under current
Good Manufacturing Practice (cGMP). The cGMP suites include 1,000-liter,
200-liter and 20-liter bioreactors as well as downstream processing. An
additional 30,000 square feet are available to support production and quality
control operations and allow for additional cGMP capacity.

In addition to using the South San Francisco facility for the development and
production of its own products, VaxGen intends to train Celltrion personnel in
U.S. cGMP-compliant biologics manufacture as part of its technology transfer
agreement with Celltrion. The joint venture is funding the development of the
much larger biopharmaceutical manufacturing facility in South Korea, which
Celltrion plans to use to provide large-scale contract manufacturing services to
companies in the U.S., Asia and Europe.

"The capabilities of these facilities represent strong vehicles for the growth
of both VaxGen and Celltrion," said James P. Panek, VaxGen's senior vice
president of Manufacturing Operations and co-CEO of Celltrion. "With technology
and training from VaxGen and the dedication and resources of our South Korean
partners, we believe we can build extremely efficient and effective
biopharmaceutical manufacturing operations."

Production of vaccines and other biologic products for clinical trials will
begin at the South San Francisco facility once manufacturing processes are
tested and validated, which VaxGen anticipates completing by the end of the
third quarter of this year.



About VaxGen

VaxGen, Inc. is a biopharmaceutical company engaged in the development,
manufacture and commercialization of biologic products for the prevention and
treatment of human infectious disease. Based in Brisbane, Calif., the company is
developing preventive vaccines against anthrax, smallpox and HIV/AIDS and is the
largest shareholder in Celltrion, Inc., a joint venture formed to build
operations for the manufacture of biopharmaceutical products, including VaxGen's
vaccine candidates, should they be licensed. For more information, please visit
the company's web site at: www.vaxgen.com

Note: 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 timing and progress of completion
of manufacturing facilities, the timing of testing, validation and approval of
the facilities by the F.D.A., the ability to win future government contracts for
the development or commercial stockpile of an anthrax vaccine, the company's
plans with respect to its manufacturing strategy and partnering with other
companies for manufacturing services, and the ability to develop and manufacture
anthrax, HIV/AIDS, or other vaccine candidates or products. 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 May 15, 2003, under the heading "Risk Factors," and the company's Annual
Report on Form 10-K, filed with the Securities and Exchange Commission on March
31, 2003, 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.