legal domicile from Delaware to Bermuda. At a special meeting of stockholders held on December 29, 1998, in Berkeley, a majority of XOMA's outstanding shares were voted in favor of this change in domicile.

"We're gratified by the strong support shown for this proposal which is aimed at enhancing long-term shareholder value,'' said Jack Castello, Chairman, President and CEO of XOMA. "More than 95 percent of the votes cast by our stockholders were in favor of the proposed domicile change.'' XOMA Ltd. develops and manufactures genetically-engineered protein, peptide and antibody pharmaceuticals. The Company's medical targets include bacterial and fungal infections, infectious complications (such as those following traumatic injury or surgery) and immunologic disorders.

XOMA's primary drug development platform is BPI (bactericidal/permeability-increasing protein), a human protein found in which blood cells that has multiple anti-infective properties. The Company's first BPI-derived product, NEUPREX(r) is in Phase III trials for two indications.