Exhibit 99.1

    VaxGen Announces Dismissal of Securities Class Action and Scheduling of
                   Settlement Hearing for Derivative Lawsuit

      BRISBANE, Calif. - April 11, 2005 - VaxGen, Inc. (Pink Sheets: VXGN.PK)
announced today that the United States District Court for the Northern District
of California has entered an Order dismissing the Amended Complaint in In re
VaxGen, Inc. Securities Litigation, No. C 03-01129 JSW (the "Class Action")
without prejudice to plaintiffs' filing a further amended Complaint. Separately,
the Company also announced that the California Superior Court for San Mateo
County has scheduled a hearing for April 29, 2005 to consider a proposed
settlement in a related shareholders' derivative lawsuit, captioned In re
VaxGen, Inc. Derivative Litigation, No. CIV 430087 (the "Derivative Lawsuit").
Both lawsuits relate to certain public disclosures concerning an experimental
AIDS vaccine that the Company is no longer developing.

      The Class Action was filed in March 2003 against VaxGen, its CEO and its
former President. By Order dated March 30, 2005, the Federal District Court
granted defendants' motion to dismiss the Amended Class Action Complaint, but
afforded plaintiffs another chance to amend their Complaint. VaxGen does not
know whether plaintiffs will attempt to further amend their Complaint.

      The Derivative Lawsuit was filed in March 2003 against VaxGen, certain of
its directors and officers, Vulcan Ventures, Inc. and Paul Allen. The Superior
Court has set an April 29, 2005 hearing to consider a request for approval of
the parties' proposed settlement as fair, adequate, reasonable and in the best
interests of VaxGen and its shareholders. The Superior Court has also directed
plaintiffs' counsel to submit by April 22, 2005 a supplemental brief setting
forth further evidence in support of the value of their work, as reflected in
the negotiated attorneys' fees and expenses component of the proposed
settlement. Under the terms of the proposed settlement filed with the Superior
Court, the parties have agreed that the Derivative Lawsuit will be dismissed
with prejudice; VaxGen will ensure that certain disclosure measures are in
place; Vulcan Ventures and Mr. Allen will use reasonable and good faith efforts
to comply with applicable securities laws in connection with any future
purchases of VaxGen stock; and plaintiffs' attorneys will be reimbursed for
their incurred fees and expenses in the aggregate amount of $600,000 ($500,000
of which VaxGen has agreed to cause to be paid and $100,000 of which Vulcan
Ventures and Mr. Allen have agreed to cause to be paid). The proposed settlement
will become effective only if approved by the Superior Court. VaxGen does not
know whether the Superior Court will approve the proposed settlement.

      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 vaccines against anthrax and smallpox.

Contact:

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