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| HUMAN GENOME SCIENCES RESTRUCTURES REAL ESTATE FINANCINGS IN ACCORDANCE WITH NEW FASB GUIDANCE | |
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ROCKVILLE, Maryland -- July 3, 2003 -- Human Genome Sciences, Inc. (Nasdaq: HGSI) announced today that it has restructured financing arrangements for three capital construction projects in accordance with new guidance issued by the Financial Accounting Standards Board (FASB). The three projects are all located in Rockville, Maryland, less than one mile from Human Genome Sciences' existing research campus at Shady Grove Life Sciences Campus. The Company's Research Center, at 9800 Medical Center Drive, will continue to be owned by the Maryland Economic Development Corporation (MEDCO) and will now be leased directly to Human Genome Sciences under an operating lease. The $76 million financing for the Research Center is provided by M&T Bank. Ownership of Human Genome Sciences' new Research and Development/Corporate Campus, at 14200 Shady Grove Road, known as the Traville campus, has been transferred from a special purpose trust to Wachovia Development Corporation. The $200 million financing, formerly part of a $450 million financing arrangement with Fleet National Bank and Wachovia Bank, N.A., now is provided solely by Wachovia Bank. Construction on the Traville campus is proceeding on schedule and on budget, and Human Genome Sciences expects to begin its move into the new facility during the third quarter of 2003. Ownership of the Company's Large-Scale Manufacturing Plant, on the Belward Research Campus of Johns Hopkins University, has been transferred from a special purpose trust to Human Genome Sciences. The $250 million financing of construction of the plant was formerly part of the $450 million financing with Fleet National Bank and Wachovia Bank. Human Genome Sciences may explore a variety of new financing options for this facility. The Company expects the Large-Scale Manufacturing Plant to be ready for occupancy in 2005. These restructurings have eliminated the use of special purpose entities for all of these real estate financings. As a result of these restructurings, Human Genome Sciences' maximum restricted investment requirement has been reduced from $541 million to $291 million, which will be reached upon completion of the Traville facility. The facility is expected to be completed by the end of 2003. Over time, the amount of restricted investment may either increase or decrease depending on future restructuring of these leases or other financing arrangements. Human Genome Sciences is a company with the mission to treat and cure disease by bringing new gene-based drugs to patients. HGS and Human Genome Sciences are trademarks of Human Genome Sciences, Inc. Health professionals interested in more information about trials involving HGSI products are encouraged to inquire via the Contact Us section of the Human Genome Sciences web site, www.hgsi.com/products/request.html, or by calling us at (301) 610-5790, extension 3550. This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on Human Genome Sciences' current intent, belief and expectations. These statements are not guarantees of future performance and are subject to certain risks and uncertainties that are difficult to predict. Actual results may differ materially from these forward-looking statements because of the Company's unproven business model, its dependence on new technologies, the uncertainty and timing of clinical trials, the Company's ability to develop and commercialize products, its dependence on collaborators for services and revenue, its substantial indebtedness and lease obligations, its changing requirements and costs associated with planned facilities, intense competition, the uncertainty of patent and intellectual property protection, the Company's dependence on key management and key suppliers, the uncertainty of regulation of products, the impact of future alliances or transactions and other risks described in the Company's filings with the Securities and Exchange Commission. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today's date. Human Genome Sciences undertakes no obligation to update or revise the information contained in this announcement whether as a result of new information, future events or circumstances or otherwise.
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