GenVec Board Restructures Operations and Withdraws Plan of Dissolution

    GenVec Board Restructures Operations and Withdraws Plan of Dissolution

CEO Cynthia Collins to leave Company effective immediately; and CFO Douglas
Swirsky to assume role of CEO

PR Newswire

GAITHERSBURG, Md., Sept. 4, 2013

GAITHERSBURG, Md., Sept. 4, 2013 /PRNewswire/ --GenVec, Inc. (NASDAQ: GNVC)
today announced that its Board of Directors withdrew the Plan of Complete
Liquidation and Dissolution for the Company previously adopted on May 24,
2013. The Company also announced that it will pursue a strategy focused on
maximizing the value of its technology and assets, including its collaboration
with Novartis to develop novel treatments for hearing loss.

In connection with this new operating plan, Cynthia Collins, President and
Chief Executive Officer, has departed the Company and resigned as a member of
its Board of Directors. Douglas J. Swirsky, who has served as GenVec's Senior
Vice President and Chief Financial Officer since 2006, has been named as the
Company's President and Chief Executive Officer and has been appointed to the
Company's Board of Directors.

"Under the leadership of Ms. Collins, GenVec has substantially reduced its
operating costs over the past several months. GenVec's decision to withdraw
its plan of dissolution is a result of our increased confidence that
milestones in our collaborations can be realized and our ability to bring our
expenditures in line with our resources," noted Mr. Swirsky. "Not including
potential milestone payments from Novartis, we have cash, cash equivalents and
investments to fund our operations through at least the end of 2014. Over the
last several months, since the Board approved the plan of dissolution, we have
received a number of proposals purported to maximize the value of GenVec's
assets. While we have pursued several of the opportunities that we viewed as
potentially viable, they were ultimately not appropriate for any number of
reasons, including lack of sufficient funding, or inadequate recognition of
the value of GenVec. During this time, we have grown more confident in the
success of our hearing loss program. We, therefore, believe that shareholders
are best served by preserving the Company's hearing loss program and remaining
assets within GenVec. In addition, by withdrawing the plan of dissolution, we
can also take the time necessary to find licensees or collaborators who assign
a reasonable value to our technologies, rather than valuing the technology in
the shadow of dissolution."

"On behalf of the Board and everyone at GenVec, I want to thank Cindy for her
contributions to the Company over the past 16 months," said Zola Horovitz,
Ph.D., Chairman of the Board of Directors. "The Board is confident that this
strategy is in the best interest of shareholders and provides the clearest
path to value creation."

Following the unanimous approval to withdraw the plan of dissolution and the
approval of the operating strategy, directors Edward M. Connor, Jr., M.D.,
Adel A.F. Mahmoud, M.D., Ph.D., and Kevin M. Rooney resigned from the
Company's Board. The Board now has 5 members. Dr. Horovitz commented, "We
want to thank Drs. Connor and Mahmoud and Mr. Rooney for their service to
GenVec's shareholders over the past several years. Based on the operating
strategy, we believe the remaining directors possess the expertise to serve
the interests of shareholders while controlling the Company's costs."

Additional information about GenVec is available at www.genvec.comand in the
Company's various filings with the Securities and Exchange Commission.

Statements herein relating to future financial or business performance,
conditions or strategies and other financial and business matters, including
expectations regarding funding, grants, collaborations, revenues, cash burn
rates, the development of products and the success of the collaboration with
Novartis, are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act. GenVec cautions that these forward-looking
statements are subject to numerous assumptions, risks and uncertainties, which
change over time. Factors that may cause actual results to differ materially
from the results discussed in the forward-looking statements or historical
experience include risks and uncertainties, such as the failure of Novartis to
advance GenVec's hearing loss program, including into human clinical trials.
Further information on the factors and risks that could affect GenVec's
business, financial conditions and results of operations, are contained in
GenVec's filings with the U.S. Securities and Exchange Commission (SEC), which
are available at www.sec.gov. These forward-looking statements speak only as
of the date of this press release, and GenVec assumes no duty to update
forward-looking statements.

Retail Investor and Media Contact: Institutional Investor Contact:

GenVec, Inc.                       S.A. Noonan Communications

Douglas J. Swirsky                 Susan A. Noonan

(240) 632-5510                     (212) 966-3650

dswirsky@genvec.com                susan@sanoonan.com



SOURCE GenVec, Inc.

Website: http://www.genvec.com
 
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