The Board of Directors of PVAXX Limited announced today that following extensive discussions with the Company’s financier Merrill Lynch PCG Inc. they had received a notice of default and acceleration under the Credit Agreement entered into between the Company and Merrill Lynch PCG Inc. on October 14, 2005.

A further statement will be made by the company when necessary, no other party is authorised or able to provide any information regarding this matter.

If you wish to contact the company please do so in writing to mail@pvaxx.com or to the company's registered office at 64 King Street, Hamilton HM12, Bermuda addressed to the Directors.