Medivir receives shares and cash payment from Epiphany Biosciences.

Medivir receives shares and cash payment from Epiphany Biosciences.

A completed share issue by San Francisco based Epiphany Biosciences, Inc.,
Medivir's licensing partner for the shingles project MIV-606 (also known as
EPB-348), has led to Medivir obtaining shares in Epiphany corresponding to a 2 %
ownership in the company.

Several US and international institutions including Wexford Capital, Windsor Bay
Capital, Global Trust Ventures, China Development Industrial Bank, and other
investors have invested in the new share issue which raised USD 36m. The share
issue proceeds will be used for the continued development of MIV-606 and
Epiphany's other discovery and development programs.

Medivir also received a milestone payment of USD 0.5m from Epiphany, as
stipulated in the license agreement from September 2006.

“The great interest for Epiphany's new share issue reflects the potential which
American investors see in the zoster project MIV-606, and we are looking forward
to seeing the project proceeding further in development towards a marketing
authorization”, comments Medivir's CEO Lars Adlersson.  “We are delighted to
have completed the licensing of this drug and look forward to collaborating with
Medivir on its clinical development.” stated Fred Volinsky, MD, the CEO of
Epiphany Biosciences.

MIV-606 is one of six polymerase projects which Medivir has elected to
outlicense in order to focus in-house resources on its phase III project
Lipsovir® and selected protease projects. The total deal value for the
outlicensed polymerase projects, excluding royalties and payments in shares,
amounts to more than USD 400 m.





FOR FURTHER INFORMATION, PLEASE CONTACT 
Rein Piir, CFO and VP, Investor Relations, Medivir AB +46 8 546 831 23 or +46
708 53 72 92 
Fred G. Volinsky MD, CEO, Epiphany Bioscience +1 415 765 7193 or 
David C. Myles PHD, COO, Epiphany Bioscience +1 415 765 7198

About Medivir AB
Medivir is a Swedish pharmaceuticals company with seven potential drugs in
clinical development phases (trials in humans) for various diseases. Medivir's
first pharmaceutical, the cold sore drug Lipsovir®, may achieve a marketing
authorization as soon as 2008. The company is listed on the Stockholm Stock
Exchange since 1996. 
For more information about Medivir, please see the company´s website,
www.medivir.se

About Epiphany Bioscience
Epiphany Biosciences is focused on advancing new therapies for infectious
disease.  Epiphany's team includes a world class group of scientists and medical
professionals including CSO Michael Houghton, PhD and CMO Brian Murphy MD.  The
founders include Fred Volinsky MD, Robert Gallo MD, David Myles PhD and Barry
Selick PhD.  Epiphany is located in San Francisco, California, USA.

Additional information on Epiphany Biosciences may be obtained at the company
website www.epiphanybio.com