MEDIVIR ANNOUNCES BRISTOL-MYERS SQUIBB HAS TERMINATED THEIR AGREEMENT FOR THE DEVELOPMENT OF MEDIVIR'S PRECLINICAL POLYMERASE INHIBITOR, MIV-170

MEDIVIR ANNOUNCES BRISTOL-MYERS SQUIBB HAS TERMINATED THEIR AGREEMENT FOR THE
DEVELOPMENT OF MEDIVIR'S PRECLINICAL POLYMERASE INHIBITOR, MIV-170

Medivir today announced that Bristol-Myers Squibb (NYSE: BMY) has terminated the
development of the preclinical HIV compound MIV-170. The compound did not meet
the profile desired by Bristol-Myers Squibb.  MIV-170 belongs to the group of
polymerase inhibitors that Medivir already discontinued the development of and
that are administered by the subsidiary Medivir HIV Franchise AB.  

”Everyone is aware of the obvious risks in early pharmaceutical development.
MIV-170 has not yet reached clinical development and statistically half of all
pharmaceutical projects fail in this early pre clinical development phase.
However, the license agreement with Bristol-Myers Squibb has already provided
Medivir with payments that by far exceed Medivir´s investments in the project”
said the CEO of Medivir HIV Franchise AB, professor Bo Öberg."The termination of this collaboration will not have any material effect on
Medivir´s ability to establish itself as a profitable, research based
pharmaceutical company with its own regional sales force. We have intentionally
refrained from continued investments in the group of compounds that MIV-170
belongs to (i.e. polymerase inhibitors).  Our focus is entirely on the mature
projects Hepatit C-PI (Phase I), cathepsin K (Phase I) and Lipsovir® (Phase III)
for which we are aiming at communicating clinical data later this year” said
Medivir´s CEO Lars Adlersson.
For additional information please contact:	
Rein Piir, CFO and VP, Investor Relations: +46 (0)8 546 83123 or +46 (0)70 853
7292

For more information about Medivir, please visit www.medivir.com