Business Editors, Health/Medical Writers

CONCORD, Calif.--(BUSINESS WIRE)--Sept. 26, 2002

Cerus Corporation (Nasdaq:CERS) today announced that it has been awarded an additional $6.5 million cooperative agreement by the Army Medical Research Acquisition Activity division of the Department of Defense (DOD). Cerus received the award, its second with the DOD, for continued development of technologies to improve the safety and availability of blood that may be used by the Armed Forces of the United States for medical transfusions.

Under the agreement, Cerus will conduct research on inactivation of infectious blood-borne agents, which may present heightened risk in military settings, including unusual pathogens identified as emerging or rare contaminants in the blood supply. The agreement specifically details work on the pathogens responsible for West Nile encephalitis, malaria, Chagas disease, Dengue fever, among other pathogens for which no routine diagnostic testing is performed to detect positive blood units.

"We are very pleased that the U.S. Armed Forces chose to expand our relationship and support additional research to improve the safety and availability of blood for the military," said Stephen T. Isaacs, president and chief executive officer of Cerus. "The program is directed toward providing comprehensive protection for all blood and blood components intended for transfusion, including platelets, plasma and red blood cells."

Mr. Isaacs continued, "We appreciate the leadership of Congressman Jerry Lewis, Congressman George Miller and Congressman Mark Kirk for recognizing the importance of this public health issue and addressing the need to support research in blood safety."

This most recent award provides further funding for projects initiated under a 2001 agreement in which Cerus received a $3.5 million award. The total $10 million funding will cover the research at both Cerus and the Walter Reed Army Institute of Research.

In addition to inactivation of unusual pathogens, Cerus, in collaboration with Walter Reed Army Institute of Research, will also investigate innovative ways to improve the storage and shelf-life of blood and blood components, including expanding the shelf-life of red blood cells and researching freeze-dried plasma with longer shelf-life and more convenient storage conditions.

About Cerus

Cerus Corporation is developing medical systems and therapeutics based on its proprietary Helinx(R) technology for controlling biological replication. Cerus' most advanced programs are focused on systems to enhance the safety of blood products used for transfusion. The INTERCEPT Blood System, based on the company's Helinx technology, is designed to inactivate viruses, bacteria, other pathogens and white blood cells. The Concord, California-based company also is pursuing therapeutic applications of Helinx technology to treat and prevent serious diseases.

Note to Editors: Helinx is a U.S. registered trademark of Cerus Corporation. INTERCEPT Blood System is a trademark of Baxter International, Inc. (NYSE:BAX).

Forward-looking statements in this news release, including those regarding product development and potential revenue, involve risks and uncertainties. Actual results could differ materially from such forward-looking statements as a result of certain factors, including the risks and uncertainty of the timing and results of clinical trials and other development and commercialization activities, actions by regulatory authorities at any stage of the development process, additional financing activities, manufacturing, market acceptance of any products, competitive conditions and other factors discussed in the company's most recent filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q. Cerus does not undertake any obligation to update forward-looking statements.