Vical Incorporated (Nasdaq) today announced that it has received a commitment from an investment fund of Temasek Holdings (Private) Ltd, an Asia investment firm headquartered in Singapore, to purchase $25.0 million of its common stock in a registered direct offering, under which Vical will sell approximately 5.0 million shares pursuant to an effective shelf registration statement at a price of $5.02 per share, with no commissions. The transaction is expected to be completed on October 19, 2006. Proceeds from the transaction will be used for further development of Vical's pandemic influenza DNA vaccine candidate, including funding of Phase 1 human clinical testing, as well as for other general corporate purposes.

Vijay B. Samant, Vical's President and Chief Executive Officer, said, "We are pleased that Temasek Holdings has selected Vical as an addition to its investment portfolio. We look forward to the benefits of Temasek's substantial resources and international perspective as we progress in our program to develop a DNA vaccine against pandemic influenza."

About Vical

Vical researches and develops biopharmaceutical products based on its patented DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases. Potential applications of the company's DNA delivery technology include DNA vaccines for infectious diseases or cancer, in which the expressed protein is an immunogen; cancer immunotherapeutics, in which the expressed protein is an immune system stimulant; and cardiovascular therapies, in which the expressed protein is an angiogenic growth factor. The company is developing certain infectious disease vaccines and cancer therapeutics internally. In addition, the company collaborates with major pharmaceutical companies and biotechnology companies that give it access to complementary technologies or greater resources. These strategic partnerships provide the company with mutually beneficial opportunities to expand its product pipeline and address significant unmet medical needs.