OXiGENE Reports Positive Preclinical Ocular Penetration Data with Topical Formulation of ZYBRESTAT(TM) for Ophthalmology

OXiGENE Reports Positive Preclinical Ocular Penetration Data with Topical
Formulation of ZYBRESTAT(TM) for Ophthalmology

Key Feasibility Hurdle Overcome in Topical Ophthalmology Program

WALTHAM, Mass.--(BUSINESS WIRE)--Dec. 31, 2007--Regulatory News:

    OXiGENE, Inc. (NASDAQ: OXGN, XSSE: OXGN), a clinical-stage,
biopharmaceutical company developing novel therapeutics to treat
cancer and eye diseases, today reported positive results from
preclinical studies with topical formulations of ZYBRESTAT for
ophthalmological indications. The studies, performed in
industry-standard rabbit models, indicate that two formulations of
ZYBRESTAT, when applied topically to the surface of the eye, are
absorbed and result in concentrations of drug in target tissues in the
back of the eye (i.e., the retina and horoids) that the Company
believes will be sufficient for therapeutic activity in age-related
macular degeneration (ARMD) and potentially other eye diseases in
which abnormal neovascularization plays a role. These results confirm
preliminary results seen in earlier preclinical studies."Achieving therapeutic concentrations of ZYBRESTAT with topical
delivery in relevant ocular tissues, such as the retina, in
preclinical models represents a key milestone in OXiGENE's
ophthalmology program," commented OXiGENE's President and Chief
Executive Officer, Richard Chin, M.D. "Having previously observed in
clinical trials that intravenously-administered ZYBRESTAT has clinical
activity in patients suffering from a form of macular degeneration, we
believe a topical formulation of ZYBRESTAT that delivers sufficient
quantities of drug to target tissues in the eye has a high likelihood
of demonstrating activity in the clinic. We now have results from
multiple preclinical studies suggesting that development of such a
formulation is feasible, and we believe that a topical formulation of
ZYBRESTAT could potentially be a major advance for patients with a
variety of ophthalmic diseases and conditions."

    Tolerability of the formulations was favorable in the rabbit
studies, confirming data from earlier rodent studies. Based on these
results, OXiGENE is proceeding with further preclinical studies in
non-rodent models, which, if consistent with results from rabbit and
rodent studies, are expected to provide support for an IND submission,
currently planned for the first half of 2008.

    In February 2007, OXiGENE announced positive results from a Phase
II clinical trial of intravenous ZYBRESTAT in 23 patients with myopic
macular degeneration. All patients achieved the primary endpoint of
the trial, stabilization of vision. Results from the trial were
reported in poster form in May 2007 at the 47th Annual Meeting of the
Association of Research in Vision and Ophthalmology, and a copy of the
poster is available on OXiGENE's website at
http://www.oxigene.com/press/publications.asp - Posters.

    About ZYBRESTAT (combretastatin A4 phosphate / CA4P)

    ZYBRESTAT(TM) is currently being evaluated in a pivotal
registration study in anaplastic thyroid cancer (ATC) under a Special
Protocol Assessment agreement with the U.S. Food and Drug
Administration (FDA). OXiGENE believes that ZYBRESTAT is poised to
become the first therapeutic product in a novel class of
small-molecule drug candidates called vascular disrupting agents
(VDAs). Through interaction with vascular endothelial cell
cytoskeletal proteins, ZYBRESTAT selectively targets and collapses
tumor vasculature, thereby depriving the tumor of oxygen and causing
death of tumor cells. In clinical studies in solid tumors, ZYBRESTAT
has demonstrated potent and selective activity against tumor
vasculature, as well as clinical activity against ATC, ovarian cancer,
and various other solid tumors. In clinical studies in patients with
forms of macular degeneration, intravenously-administered ZYBRESTAT
has demonstrated clinical activity, and the Company is working to
develop a convenient and patient-friendly topical formulation of
ZYBRESTAT for ophthalmological indications.

    About OXiGENE

    OXiGENE is a clinical-stage biopharmaceutical company developing
novel therapeutics to treat cancer and eye diseases. The Company's
major focus is developing VDAs that selectively disrupt abnormal blood
vessels associated with solid tumor progression and visual impairment.
OXiGENE is dedicated to leveraging its intellectual property and
therapeutic development expertise to bring life-extending and
-enhancing medicines to patients.

    Safe Harbor Statement

    This news release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Any
or all of the forward-looking statements in this press release may
turn out to be wrong. Forward-looking statements can be affected by
inaccurate assumptions OXiGENE might make or by known or unknown risks
and uncertainties, including, but not limited to the timing and
success of further preclinical studies of topical formulations of
ZYBRESTAT for ophthalmological indications and the timing and ability
to submit an IND for a topical formulation of ZYBRESTAT for
ophthalmological indications. Additional information concerning
factors that could cause actual results to materially differ from
those in the forward-looking statements is contained in OXiGENE's
reports to the Securities and Exchange Commission, including OXiGENE's
reports on Form 10-K, 10-Q and 8-K. However, OXiGENE undertakes no
obligation to publicly update forward-looking statements, whether
because of new information, future events or otherwise. Please refer
to our Annual Report on Form 10-K for the fiscal year ended December
31, 2006.

OXiGENE, Inc.
Investor Relations
Shari Annes, 650-888-0902
sannes@oxigene.com