OXiGENE Reports Second Quarter 2008 Results


OXiGENE Reports Second Quarter 2008 Results                                     
WALTHAM, Mass., Aug. 4, 2008 (PRIME NEWSWIRE) -- OXiGENE, Inc. (Nasdaq:OXGN)    
(Stockholm:OXGN), a clinical-stage, biopharmaceutical company developing novel  
therapeutics to treat cancer and eye diseases, reported financial results for   
the quarter ended June 30, 2008 and presented an update on recent clinical and  
corporate progress.                                                             

Financial Results                                                             
The Company reported a net loss for the second quarter of 2008 of $7.0 million, 
or $0.25 per share, compared with a net loss of $5.4 million, or $0.19 per      
share, for the same period in 2007.                                             
For the six-month period ended June 30, 2008, the net loss was $12.5 million, or
$0.44 per share, compared to a net loss of $9.3 million, or $0.33 per share, for
the comparable period in 2007.                                                  
The increase in loss for both the three and six month periods was driven        
primarily by a higher level of clinical development activities, including the   
continued enrollment of both the ZYBRESTAT(tm) (fosbretabulin) pivotal          
registration trial in anaplastic thyroid cancer (ATC) and the Phase II trial of 
ZYBRESTAT in combination with standard chemotherapy and bevacizumab for the     
treatment of Non-Small Cell Lung Cancer, as well as the management of other     
ongoing clinical trials and drug development activities.                        
At June 30, 2008, OXiGENE had cash, cash equivalents and marketable securities  
of approximately $18.3 million compared with approximately $28.4 million on     
December 31, 2007.                                                              
"The second quarter of 2008 was a period of steady advancement for each of our  
programs, as well as our corporate and business development initiatives,"       
commented Richard Chin, OXiGENE's President and CEO. "Vascular disrupting agents
in general, and ZYBRESTAT in particular, are receiving increasing attention as  
the next generation of anti-vascular therapies for cancer and diseases involving
neovascularization of the eye."                                                 
Clinical Highlights / Update                                                    

 * In May, at the 11th International Workshop on the Tumor                      
   Microenvironment, Hypoxia, Angiogenesis and Vasculature, the Company         
   presented previously announced results from topical-route, ocular            
   penetration studies in primates and rabbits. This was the first              
   formal presentation of the previously-announced data from these              
   studies.                                                                     

 * At the 2008 American Society of Clinical Oncology (ASCO) annual              
   meeting, the company reported data from a phase I study of ZYBRESTAT         
   (fosbretabulin) and bevacizumab in subjects with advanced solid              
   tumors. The study found that the combination appears safe and                
   well-tolerated, and shows signs of clinical activity.                        

 * At the 2008 ASCO meeting, the company reported data from an ongoing          
   Phase I study of vascular disrupting agent OXi4503 in patients with          
   advanced solid tumors.  The study found that the drug appears well           
   tolerated, and shows evidence of both clinical and functional                
   imaging activity.                                                            

Members of OXiGENE's management team will review first quarter results via a    
webcast and conference call today at 2:00 p.m. EDT (11:00 a.m. PDT). To listen  
to a live or an archived version of the audio webcast, please log on to the     
Company's website, www.oxigene.com. Under the "Investor Center" tab, select the 
link to "Presentations & Conference Calls."                                     
OXiGENE's earnings conference call can also be heard live by dialing (888)      
208-1507 in the United States and Canada, and (913) 312-0402 for international  
callers, five minutes prior to the beginning of the call. A replay will be      
available starting at 5:00 p.m. EDT (2:00 p.m. PDT) on August 4, 2008 and ending
at 5:00 p.m. EDT (2:00 p.m. PDT) on Monday, August 11, 2008. To access the      
replay, please dial (888) 203-1112 if calling from the United States or Canada, 
or (719) 457-0820 from international locations. Please refer to replay pass code
6113741.                                                                        

About ZYBRESTAT (fosbretabulin)                                                 
ZYBRESTAT is currently being evaluated in a pivotal registration study in 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 OXi4503                                                                   
OXi4503 (combretastatin A1 di-phosphate / CA1P) is a dual-mechanism VDA that is 
being developed in clinical studies for the treatment of solid and liquid       
tumors. Like its structural analog, ZYBRESTAT(tm) (fosbretabulin / CA4P),       
OXi4503 has been observed to block and destroy tumor vasculature, resulting in  
extensive tumor cell death and necrosis. In addition, preclinical data indicates
that OXi4503 is metabolized by oxidative enzymes (e.g., tyrosinase and          
peroxidases), which are elevated in many solid tumors and tumor white blood cell
infiltrates, to an orthoquinone chemical species that has direct cytotoxic      
effects on tumor cells. Preclinical studies have shown that OXi4503 has (i)     
single-agent activity against a range of xenograft tumor models; and (ii)       
synergistic or additive effects when incorporated in various combination        
regimens with chemotherapy, molecularly-targeted therapies (including           
tumor-angiogenesis inhibitors), and radiation therapy. OXi4503 is currently     
being evaluated as a monotherapy in a Phase I dose-escalation clinical trial in 
patients with advanced solid tumors.                                            

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.                      
The OXiGENE, Inc. logo is available at                                          
http://www.primenewswire.com/newsroom/prs/?pkgid=4969                           
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, enrollment rate for patients in the ZYBRESTAT pivotal trial for     
anaplastic thyroid cancer, interim analysis of the same, timing of the IND      
filing and Phase I trial initiation for topical ZYBRESTAT, timing of a Phase II 
clinical trial of ZYBRESTAT and bevacizumab in NSCLC, timing or execution of a  
strategic collaboration on any product or indication, and cash utilization rate 
for 2008. 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, 2007.         

 OXiGENE, Inc.                                                                  
 Condensed Balance Sheets                                                       
 (All amounts in 000's)                                                         
 (Unaudited)                                                                    
                                                June 30,      Dec. 31,          
                                                  2008         2007             
                                                --------     --------           
 Assets                                                                         

   Cash, cash equivalents and marketable                                        
    securities                                  $ 18,273     $ 28,438           
   Licensing agreement                               630          679           
   Other assets                                    1,125          947           
                                                --------     --------           

   Total assets                                 $ 20,028     $ 30,064           
                                                ========     ========           

 Liabilities and stockholders' equity                                           

   Accounts payable and accrued liabilities     $  6,131     $  5,207           
   Total stockholders' equity                     13,897       24,857           
                                                --------     --------           

   Total liabilities and stockholders' equity   $ 20,028     $ 30,064           
                                                ========     ========           


 OXiGENE, Inc.                                                                  
 Condensed Statements of Operations                                             
 (All amounts in 000's except per share amounts)                                
 (Unaudited)                                                                    

                         Three months ended       Six months ended              
                        --------------------    --------------------            

                               June 30,               June 30,                  
                        --------------------    --------------------            

                          2008        2007        2008        2007              
                        --------    --------    --------    --------            

 License revenue        $     --    $      7    $     --    $      7            

 Costs and expenses:                                                            

  Research and                                                                  
   development             5,176       3,502       8,865       5,891            
  General and                                                                   
   administrative          2,023       2,380       4,070       4,504            
                        --------    --------    --------    --------            

 Total costs and                                                                
  expenses:                7,199       5,882      12,935      10,395            

 Operating loss           (7,199)     (5,875)    (12,935)    (10,388)           
                        --------    --------    --------    --------            

  Investment income          158         523         445       1,094            
  Other (expense)                                                               
   income, net                (7)        (17)         (2)        (24)           
                        --------    --------    --------    --------            


  Net loss              $ (7,048)   $ (5,369)   $(12,492)   $ (9,318)           
                        ========    ========    ========    ========            


 Basic and diluted                                                              
  net loss per common                                                           
  share                 $  (0.25)   $  (0.19)   $  (0.44)   $  (0.33)           


 Weighted average                                                               
  number of common                                                              
  shares outstanding      28,258      27,875      28,164      27,875            

CONTACT:  OXiGENE, Inc.                                                         
          Investor and Media Contact:                                           
          Investor Relations                                                    
          Michelle Edwards                                                      
          415-315-9413                                                          
          medwards@oxigene.com