Good Morning, note of Announcement HEP-B, expansion of trials $ 1.4 Million infunding

More NEWS to come SOON...
 

B INTRO..CONVENES

B Welcome
Intro Officers Dr. Kelker Sr. VP. DIAGS
Sharim Rabbani CFO
Thalenfeld
Herb Bass
Dr. Engelhardt SR VP
Dr Elazar Rabbani
David Goldberg Business Dev.
John Delucca, Outside Dir.

List of shareholders made available.
Affadavit...notice...proxy...Nov 29, 1999 to all As of Nov 19, 1999

Holders necessary to constitute a Quorum is verified,

Dr. Rabbani and Mr. Sias voted in
Closed...

Three year terms, approved! (First Proposal)
Earnst & Young, approved! (Second Proposal, thru July 2001)

(My questions, stealth vector applicable to all viral vectors)

B Changing face of medicine, changing last decade, last 50 years more lives saved than any prior period. New millennium ENZO is in the forefront Interesting history, watching as the history becomes fulfilling, looking at different options for health care. Embodiment of new technologies... Shows slide of bloodletting...200 years ago, 40 years later, 1840, microscope...20 yrs later Louis Pasteur 1881, vaccination, rabies, anthrax, 20 years first hormone secretin discovered, Ian Flemming Penicillin 1928, took 13 years for it to become a commercial product. Time frames have not changed that much. 1953 Watson Crick ...early 70's ...1976 EBOLA Virus id'ed in Africa 1979 World declared free of small pox. Then came HIV. ENZO founded in 1976. ENZO's vision ...saw DNA as a source of biological information. Cornerstone has not changed in 20 years. The vision is now coming to fulfillment. Those that had the vision are still here. Very very proud. Pioneering next generation of molecular medicine. Genetic Modulation>Gene Regulation>HIV, CHOL, very powerful future. IMMUNE MODULATION, pathogens infect people but the immune system's response is the source of the damage, Hep-B primary product, Genomic Analysis, changing...new avenue GENOMICS, discovery and ID of genes. How do you use these to treat people. DNA Diagnostics pick out a gene in a given sample, need for more accurate diags, real time need most apparent. (Working on real time diagnostics!!!)

1999 Year of Transition. Saw shift of revs. Clinical pipeline, supply to gene chip manufacturers, tech breakthroughs, key patents validated (culminated, very important) NYSE eligibility is a key driver. Record year. Financial performance certainly set a record, shareholder's equity at high, improved institutional holdings, largest number of mfg products, ranks in top 20 for revs, top 5% for profit, top 2% return on investment...

Strong wealth of research, moving into marketplace, Patent Stable at a high, technology platform is at the cutting edge, pipeline filling, research, diagnostics, therapeutics, cash flow positive, debt free.

Unique, top 2% in return. R&D increasing. Substantial cash, no debt, 45 million or so, increasing proposition, cash flow still positive, working capital 60 Million, Shareholder's equity approaching 75 Million NO DEBT. 100 M shift from early 80's. Promised improvements in revenue and income. Therapeutic activities allows own lab to process the trial...Best return per R & D dollar in the industry,. World wide leader in gene id. Intellectual property many patents both offensive and defensive. Patents are taking a commanding role. It will generate significant contribution. Developing technology is not enough. Must create a usable product. Modified systems for bio-array, now selling kits which were not available 2 years ago. Distribution only, no licensing. AFFX, Gene Logic, Li-Cor, Many pending. Research Reagents, Global Distribiution (show each list of participants)

Research Market DNA Analysis, Clinical Research Drug Discovery, Microbiological... get later...

Research Products
DNA Probes
Grenomic Analysis
Biochips
Sequencing

*****(My Question, why not make a chip?)
*****(40,000, head of a pin)

CLINICAL RESEARCH AND DRUG DISCOVERY (HOT ONE)
AFFX sells the kit every time they sell a gene chip to a customer (PURIST LIED)

MicroBiology Virology Diagnostics

Disease ID
DNA Probe
Labeling
Amplification
Detection
1.5 Billion in size (Penetration)

96 well dish Patents, covering DNA used in titer dish, Well Covered, giving competitors heartburn...

Slide>>> Cervix Human Papilloma Virus, ID = YES early detection of pap smear, cancer

GENETIC DIAGNOSIS

Chromosome Abnormalities
Gene abnormalities.
Sequence Issues

BLOOD BANK SCREENING

Early detection
Slippage in system for pathogens, HIV, HEB

Gene Therapy Monitoring

Monitor presence of a gene
Monitor gene function

Point of Care

OTC tests. Gell based system for blood, test for cellular abd blood issues on the spot, real time. Small now, 30 M.

THERAPEUTICS!!!

Record year.

Historically, never recognized. Today exploring

Genetic Modulation, Vectors, non-native DNA, Immuen Modulation
VECTORS KEY (As I said) IMMUNOSILENT VESTORS KEY
UCSF HIV
HEP-B

Strong statement about vector going where it should STEALTH works. It follows the pathway, IT DOES PRODUCE THE ANTISENSE PRODUCT HIGH DEGREE OF EXPRESSION, PRODUCING CORECTLY AND TREMENDOUSLY, VIRUS CANNOT ESCAPE IN LAB, FOR NOW>

*****(WHICH HIVs TESTED) Cornell All serotypes of HIV1, HIV 2...

*****(REPOPULATE IMPLIES AIDS???HOW CAN YOU REPOPULATE AN HIV+?)Reconstitution Phase I Patients have viral load aids free.

#1 VECTOR has worked very well. Said 30%. In Trials. Witnessing that in HUMANS. Able to transduce cells of pateintes in a non-growing envornment. After 6 months reformatted. CUT OUT A STEP. Three months cut to 18 hours. Modified Protocols. Third, are seeing ANTISENSE in active circulating cells months after transduction. (BIG BIG BIG)

****(ENGRAFTMENT ???)

*****DEAN WANTS TRIALS

HEP B Trial, BiNational R & D Israli Am. Dev Agency, 1.4 mill, to proceed with HEP-B. Phase 1 data not yet releaaseed. Few months left. Multi-Country approach. Third world drug. Inexpensive, easy to administer treats HEP-B infestion. TREMENDOUS VOTE OF CONFIDENCE.

INTELLECTUAL PROPERTY

Enormous, expanding, encompassing, generating value,

What will ENZO become?

Today, complex, difficult for Wall Street, not a one liner,

****(HBC)
****(Genetic Antisense B, C)

****(Tolerization leads to a cure? Is this possible)
 

DIAG DEAL
* dominant players have merged from 8 to 4. More to come. DO NOT WANT TO MAKE A MISTAKE> 1.5 Billion dollar to ENZO, WILL NOT MAKE A MISTAKE>

UP TO 5 PRODUCTS WILL BE IN TRIAL SIMULTANEOUSLY
BELIEVE THAT EACH ENTITY WILL STAND ON ITS OWN. BELIEVE THAT THEY WILL WORK> WILL CAPITALIZE ON THESE OPTIONS< THIS YEAR!!!

DR ENGELHARDT

Thanks Barry, SWAT TEAM...progressive

NY times article HIV infection, AFRICA Numbers are real. Condition is alarming catastrophic. 5 million HIV + per year, minimal treatment, mortqality close to 100%. Definitive number 45 million ww, most in africe. Increasing by 5 M per year. Do not know where it will stop. Constant rate.

Nothing available to stop it, except public health training. QUICK RESPONSE AGGRESSIVE RESPONSE>

Number of people in room. Comments, hold in trust for us. Everyone is acutely aware to fulfill this trust. Maintain company at a level which is appropriate to our level of interest. Thick and thin, Bulk of comments aimed at two trials. IDN applications Isreal, trials initiating, wants to comment on two human evaluations taking place. Could have as many as 5 by end of this year ****Calander?) Two may be Phase II during this year. First, HIV, engineer humans so that the blood cells that are otherwise to HIV become resistant. Rundown. All white blood cells primary and possible only target, blood stem cell, CD34+ surface id. No one quite knows what they are but these are the mothers of all blood cells in the body. If you want to get to all the white blood cells in the body, you must reach the stem cells. Putting gene into human blood stem cells, putting genes in, idea is these cells will engraft and produce all components, CD3+, CD4+, Monophage, macrophage, memory, As cells turn over, HSC's will re-populate. If the new system is resistant, the person will continue to live, even though they carry the virus. This is the POINT. HIV resistant cells produced by Gene Therapy. Three separate advances. First, gene putting in to kill virus. ANTISENSE, targeted to genes (perhaps as few as one). Highly selective strategy. Developed a strategy of putting the genes in U1 RNA. Even during apoptosis. Nested ANTISENSE, gene back in, starts turning and producing ANTISENSE RNA *****(Is this a correct characterization) Produced human cells within which HIV will not divide. Virus comes in, virus is killed. ***(Outside ?) Unique and special gene. Will always kill HIV. Lets go ahead and put into people. At the time, there was no conventional way to do it. Developed own vector. Put the gene inside of a fake virus, pseudo virus, transducing vector HTLV2, but inside, are the Antisense genes. Human virus. ***(HTLV VERSUS MMLV) Reasonable price. Superior vector. Stem cell routine, number 30% to 80%. Stem cells impure, stem cells, transduces all stem cells, 100%??????***( Why the press release) Halfway through trial, no need to grow, Overnight, inject. Patient #2. "Is that all" Slurry injected. Transducing vector that works. Better than anyone else. 10 years, human infants SCID ***(was Morton Cowan involved in this). All have uniformly failed. STEALTH. ANTISENSE RNA ONLY. ***ADDED PROBE?) ***DESCRIBE CONTROL SEQUENCE ROLE) Hope ws that the cells will survive. THEY DO SURVIVE VERY WELL IN THE HUMAN BODY> NO EVIDEN

CE OF LOSS OF CELLS. IT IS WORKING ACCORDING TO STRUCTURAL DESIGNS. No need for growth was a bonus. Time will tell if this is the product that breaks through, but WE ARE IN THE LEAD. ***(Who ELSE)?

HEP-B. Clinical Trials. Antisense down regulares a gene selectively. Extremely selective. Genes in a human 1 of 100,000. IT WORKS> Discovered a way to selective downregulate immune responses, 1,000,000 or 10,000,000 strategy of presenting ANTIGEN in such a way that only that single response is down regulated ***(describe viral vector). For HEP-B. 300,000,000 infected. Pathogenises different than originally thought. Virus infects, stabilizes its growth. Body raises immune response which kills the cells. Kills cells that are not infected. HBV progress slowly to destruction of liver. Fibers, scarring, bile ducts clog collapse of the organ. Tested in Mice, raised antibody and then eliminated the antibody. Next tree shrew, HUMAN HEP-B virus will grow in a tree shrew liver. Perfect model system Tolerized infected topia (???) when sent sections to Patholy lab, HUMAN liver iflammation and myal scarring. Progressed into chronic active. Tolerized liver destruction dropped, virus dropped alittle, biopsy turned out OK. Tolerized first, infected, no chronic ...***(Vaccine). ***(HOW MANY PATENTS PENDING)

Just received a grant in total 1.4 million, to proceed into Phase II. ***(expanded I is not correct). HAS BEEN REVIEWED BY NIH NIH NIH!!!! DOUBLE BLIND AND ESCELATION STUDIES!!! ****(HIV IS DIFFERENT???)

In Phase I HIV TRIAL SAFETY AND EFFICACY !!!! Improved viral load and CD4 count. Believe both will work. WILL HAVE A MAJOR IMPACT ON ENZO. ***(PIONEERING NEW INDUSTRY) WILL LAUNCH A NEW INDUSTRY>>>>WOW TITANIC!!!

ELAZAR RABBANI

Good morning, nice to see old and new faces. Surprise of the day. OLD SHAREHOLDER, NEVER CAME. MR DAVIS!!!! What does he know that I don't know??? Hard to add to Dean's Presentation. Some topic wants to share. No specific, what is ENZO's FOCUS. Future of company. Product development of THERAPEUTIC GENETIC ANTISENSE/ TOLERIZATION PICK AND MANAGE DISEASES, MAKE A MARRIAGE OF PRODUCT TO DISEASE> CLEAR AND FOCUSED GOALS THERAPEUTICS> MANAGE CHRONIC VIRAL INFECTIONS> B, C, HIV. MAJOR PART OF ALL ILLNESSES WORLDWIDE headache to modern medicine. Not because effort or industry is not competent. Problem is that chronic viral infections are combinations of many many diseases. Cannot relate, kill virus, we are free. Cannot kill virus very well. Manifest complex medical conditions. Heart of it is that viremic phase. Second Phase Viral infectin leads to undesirable immunoligical response. Irreversible damage. End up destroying whole organ. ENZO is focusing to manage that chronic disease, therefore has to have program to manage each one of this conditions. Advertisments seem diffuse and unrelated, but in truth all activities are designed to address that one single objective, manage the viral disease.

Very Soon will establish immune modulation for HIV for undesirable immune response. ***(EXPLAIN) BONE MARROW TRANSPLANT, unmatched donor. WHY? Final stage of AIDs. Irreversibvle destruction of stem cells. Therefor there has to be a great effort for bringing another person's bone marrow to an aids patient. Prior to today, 70% success only with matched marrow. End stage, recovery. PROGRAM IS DESIGNED TO MANAGE THE DISEASE. Here to add to the true need of the Patient. In future when you hear announcement, put it in to proper perspective.

How will Therapeutic face up to the future, what is the driving force? What degree of confidence. Result presented about HIV trial, solid, significant, certainly profound. Profound because ENZO has gone further than any other gene therapy effort in a live patient. Task in front, without being modest, I believe ENZO is standing today on the outer limit of gene therapy capabilities, BEYOND. Learn from other's mistakes and progress. Totally in uncharted territory and well aware of it. And yet looking into the future with a great degree of confidence. Want to share the basis of why. Why are we so sure we will succeed. Best way to share it, went one night to review results of scientific exploration. Task force of 4 scientists. ANTISENSE in circulation. Joined by 2 senior scientists. Wen through , 1/2 through it dawned on him the amount of work and the diligence. Way beyond ELAZAR's expectation. HOW DID WE DO THIS IN SO SHORT A TIME WITH SO FEW PEOPLE. Saw people were tired and sleepy. Stunning. Absolutely stunning. Wanted to hug them. Thankful, delighted. What would have happened if they worked the same and not got the results. What would Elazar react. Guilty of thinking about it, butit was a thought. Question was not right. Even if they had not seen it, would eventually have succeeded. If not today, tomorrow, if not tommorw, next month. ESSENCE OF SUCCESS is these scientists. They deserve appreciation, recognition. Culture permeates ENZO. Management, Scientist, I can tell you about each one of them, how they got through a difficult task with hard work, dedication and imagination. We all must hold ENZO in the highest standard and demand the greatest result. Find confidence in our success and achievement today. Today standing on very strong ground.

Q Structure of Board...as we grow... we are evolving, divisionalizing, WILL BE EXPANDING THE BOARD OF DIRECTORS> WILL BRING IN TALENT!!! RECOGNIZE THE FUNDAMENTAL NEED>

Q Comment specifically on the viral load and cd4 counts. Comment if you can. We cannot talk science data at this point. Being accumulated will be presented in proper scientific venue. Have said, reiterate, KEY THRESSHOLD, WE ARE SEEING CIRCULATING CELLS PRODUCING ANTISENSE ACTIVITY. Very critical parameter.

Q Original protocols was established, intead of taking three months, shortened it to 18 hours. 100 % of vector gets into cells. Months later these patients have human white cells circulating. ENGELHARDT STANDS BY THAT. AMENDED PROTOCOLS> NEW PROTOCOLS.

Q complement on economies...Mentioned three new IND studies...Time frame for these and advancement of current trials. B-Three GVHD, HEP-C, CHRONES Looking at now. Not likely all three will go in simultaneously. Triage, based upon capabilities. Easiest and fastest first. Capable of it, but looking at possibilities. Will pick one and move through. Other trials. HEP trial 20 weeks remain. Will prepare during that period to expand. Waiting for conclusion. HIV, more complex question. OPEN STUDY, even in Phase II. INFO the same. Will add more patients. Exploring centers. How to name, will be SUBJECT TO OUR DISCUSSION WITH THE FDA. THE ISSUE IS TO BUILD STATISTICAL RELEVANCY!!!

***DR ENGELHARDT WILL PRESENT AT RETROVIRUS CONFERENCE!!!!

Q: When you remove immune surveillance, will HEPB conginue to grow,,,fact is there is no increase in viral growth. SLIGHT DECREASE.. One Antibody seems to interfere with other's activities. (THIS IS HUGE) HBVDNA , MUTATION

Q Great number of ENZO areas can stand on their own. Will you spin off. B-Beauty is to capture opportunities. Corporate instruction does allow us to divest, acquire, merge, venture, no improbable to partake those activities. Diagnostics, highly segmented., no one company covers all aspects. If you recall, those areas are each covered by individual companies. To capitalize, predicates us to deal with multiple parties. Merge, Acquire. License. BUILD THE BUSINESS> QUICKLY> CAPITALIZE ON VALUES AND IMPORTANCE OF TECHNOLOGIES>

Q> RAY > UNDER THE FDA> to implement a drug commercially, you have to demonstrate you have the infrastructure or set up in place so they can release the product. Plans in that area if we continue with success, ENZO is not a mainline pharm company. Interesting to note, typical of ENZO, products we are developing, how they will fit the internal structure. Distinct difference between products. HIV will be NON_TRADITIONAL. Process. Delivered in a cellular analysis facility in hospitals. UCSF, for example. Ultimate approval, reagents, system. Institution will do the work!!! Do not have to have a partner. Wont say if will or will not. Do not need the distribution force of an organization. Do not have to mortgage. It is a service. Economic analysis has not been done. 30K to 40K. Simple multip-UCSF can process 9500 patients per year. Total market 800-900K patients. 270 Million profit center in a Hospitqal that currently has down time. 10 centers would do it. For US. HEP is different. Traditional drug. Pill, drop, liquid, third world, HEP-B mostly there. Conventional Channels of distribution. Will have to partner.

Q> RAY Diagnostics Agreements, what's in the mill . Has grown enormously, particularly in work with genomics, recognized as major entity of DNA recognitions systems, world wide. Friendly discussions, unfriendly discussions...at end of day, moving through list of infringers who are many. Watching consolidation, parties they expected to ne #1 are not , new entities are emerging. Has been a wait and see attitude. In doing this, seen a strengthening and fulfillment of will offer a distinct advantage to their strategic partners. Playing field has shrunken, this is a good thing. Strong eneities that will survive will emerge. Sincerely believe that they will work with them.

Q> Hell of a JOB. Al Snyder, Morgan Stanley. In light of success, what is the fear we should have of potential takeover HAS ANTITAKEOVER PROVISIONS that the law allows. At the end of the day. Busines world. Everything has a price. Intention to carry forward. Not soliciting such a thing, what is the comforting fact? Assets in the company leave in the elevator every night. Patents estatem but the golden dream is in the minds of the scientific staff. Like to believe that it is not necessarily possible. Value and wealth is transient. A wise party would recognize this.

Q> Lack of IR, brokers point of view and shareholder's point of view. Quarterly conference calls??? Clear the air. More or less family controlled business, critical consideration for shareholders. Wants to help. Will consider!
 

Q> Rumor mill, IB relationship pursued at this point. Obviously everyone wants more...Boards...variety of info some accurate some inaccurate, some rumor some innuendo Corporate governance raise. Heavy responsibility. Clinical studies, how to put out info shy to the conservative side. View that tilt as showing corporate responsibility. Class action company in industry press release moving to phase II as historic move, bottom line. KEEPS US SOBER. It was historic for that company. How not to create an avenue of misinformation and false accusation. More is better than less. Will work on. RUMORS< No comments.

Q> AFFX announcing this and that...what is the relationship??? Can you give a projection of anticipation? From all? Big leagues, time to respond to shareholders.h...YES TALKING WITH IB's INTENTION AND GOAL TO BROADEN UNDERSTANDING...RESEARCH COVERAGE...TOP 20 in revenue, 5% in income, SHOULD BE COVERED.. OUR JOB WE ARE WORKING ON IT.

AFFX is one of many partners. Mobile stock. Have to limit comments. Every chip sale equals a reagent kit sale. Cannot speak to it, avoids tracking. Healthy, poingnent, demonstrates strength. ENZO makes quality products. It is the wuality of the products, AFFX will admit ENZO's kits improves theperformance of their chip. Other products other relationships. Projected growth in area is in the many billions of dollars. WE WILL BE A PARTICDIPANT>

Q> What about Bill Gates funds...80% HIV in sub-Saharan continent. Second level technology to make this a non-process approach!!!! Directly inject. Exvivo methodology! If success is found, ENZO will devote energy to that.

Q> Address chrones study

What preclinical data we have allows us to say we are producing the application for the IND. Used rodent models, eliminating inflammation in the bowel. Can tolerize those rodents with antigens removed from the bowel and effectively cure the inflammation of the bowel.

***(VECTOR, variants)
 

WILL ADD THREE NEW RESEARCHERS AND SECOND IN HOUSE PATENT COUNSEL.

WILL PRESENT AT RETROVIRUS CONFERENCE, BIG AND IMPORTANT.

WILL EXPAND BOARD

WILL IMPROVE IR

WILL CONSIDER QUARTERLY CONFRENCE CALLS

INDs READY TO FILE (OR HAVE FILED) HEP-C, Chrones, Cholesterol

Method to everything they do. All Therapeutics intended to cross, will eventually be working on transduction of bone marrow, after transplant. After successful bone marrow tolerization trials...

Dean Engelhardt noted PROTEASE INHIBITORS ARE COMPATIBLE WITH HGTV 43.

Dean Engelhardt noted, HIV 1, all clades tested, HIV 2 clades available at the last test were run through, has no hesitation in stating HGTV-43 will stop all forms of HIV.

Lots of confirmation, these are all HUMAN TRIAL CONFIRMATIONS, not clinical. With exception only of elimination of virus, do not want to preannounce this, want to do it in scientific forum. Not right to reach conclusions without peer review.

HEP-B Tolerization showed in animal models and in HUMANS (this was clearly stated and reiterated) HEP-B virus drops slightly after tolerization.

Will work on direct injectible human trials AFTER announcement of success in hiv regulation and immune system restoration.

Will look at Tolerization for HIV as possible "vaccination", ultra low cost.

Confirmed discussion with Ibs

Confirmed collapse of industry. Their picks for partners are no longer #1 and caused them to step back. Will pick the top, want only the best arrangements.

CONFIRMED every chip shipped by AFFYMETRIX includes an ENZO reagent kit. If affy explodes on gene chip kit shipments, enzo goes gaa gaa. THAT IS A FACT. SHORTS ARE TAKING DOUBLE RISK, STUPID< STUPID< STUPID Give credit where credit is due.

HGTV is 100% Stem Cell tolerization. 100% people, 100%. PURIST LIED.

The recently issued Patents mean more than ENZO can speak about right now, as will some more impending ones not yet released, but indicated to issue.

Open discussion about expanding HIV trials included mention of 4 clinics in NA, 10 will cover the entire need. FDA WILL ALLOW DISTRIBUTION OF THE PRODUCTS IF EFFICACY IS SHOWN< ACCORDING TO CONGRESSIONAL MANDATE>Trials continue in parallel with release efforts.

HEP-B WILL REQUIRE A DISTRIBUTION PARTNER< PROBABLY MORE THAN ONE. Most of market is third world.

Diabetes pre-clinicals are commenced. Believed this would develop into human trials next year.

Patient's comment, after streamlining, "that's it?". No wondering about side effects. WOW!

Looking at more pipeline Therapeutics for future.

DEAN SAID HIV AND TOLERIZATION WILL WORK>IT WILL WORK.