Exhibit 99.1

             VaxGen Receives Fast Track Designation for its Anthrax
                                Vaccine Candidate

      BRISBANE, Calif. - January 21, 2004 - VaxGen, Inc. (Nasdaq: VXGN)
announced today that the U.S. Food and Drug Administration (FDA) has granted a
Fast Track designation to the company's anthrax vaccine candidate, rPA102. The
Fast Track designation means that FDA will take such actions that are
appropriate to expedite the development and review of a license application for
rPA102, when and if it is submitted to the FDA.

      Under the FDA Modernization Act of 1997, the FDA's Fast Track Program is
designed to expedite the development and review of a new drug that is intended
for the treatment or prevention of a serious or life-threatening condition, and
demonstrates the potential of a drug candidate to address unmet medical needs
for such a condition.

      "The Fast-Track designation is designed to provide us with frequent and
ongoing communication with the FDA, allows for the possibility of filing
portions of the license application ahead of others, and gives priority review
status to the license application for our anthrax vaccine candidate," said
Carmen Betancourt, VaxGen's senior vice president of Regulatory and Quality
Affairs.

      VaxGen is developing rPA102 under two contracts valued at more than $100
million from a division of the National Institutes of Health. The latest
contract, valued at $80.3 million and awarded on September 30, 2003, is intended
to fund animal safety studies, Phase II clinical trials, the scale up and
validation of the vaccine manufacturing process and production of 3 million
doses of finished product. The latest contract has been funded in whole with
Federal funds from the National Institute of Allergy and Infectious Diseases,
National Institutes of Health, under Contract No. N01-AI-30053.

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 diseases. Based in Brisbane, Calif., the company
is developing preventive vaccines against anthrax, smallpox and plague. The
company also is the largest shareholder in Celltrion, Inc., a joint venture
formed to build operations for the manufacture of biopharmaceutical products,
including VaxGen's product candidates. The company is also conducting
government-funded research on its HIV vaccine candidate. 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, progress and results of
VaxGen's clinical development of rPA102, the



ultimate safety and efficacy of rPA102and VaxGen's ability or intentions to sell
the vaccine. 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 19, 2003, under the heading
"Risk Factors", and the company's Annual Report on Form 10-K/A, filed with the
Securities and Exchange Commission on November 19, 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.

Contact:

Lance Ignon
Vice President, Corporate Communications
(650) 624-1041