OXiGENE Reports Year-End 2008 Cash, Cash Equivalents and Marketable Securities Balance and Provides Corporate Update and Outlook for 2009


WALTHAM, Mass., Feb. 26, 2009 (GLOBE NEWSWIRE) -- OXiGENE, Inc. (Nasdaq:OXGN)
(XSSE:OXGN), a clinical-stage, biopharmaceutical company developing novel
therapeutics to treat cancer and eye diseases, reported cash, cash equivalents
and marketable securities balances for the year ending December 31, 2008. The
Company also provided an update on recent clinical and corporate progress and
outlook for 2009. 

Cash, Cash Equivalents and Marketable Securities

OXiGENE reported cash, cash equivalents and marketable securities on December
31, 2008 of approximately $33.6 million, including investments held by Symphony
ViDA, Inc. of $14.7 million compared with approximately $28.4 million on
December 31, 2007. 

The Company anticipates reporting full quarter and year-end 2008 results prior
to or in conjunction with the filing of its Form 10-K, which it plans to file
by March 31, 2009, pending completion of its review of the non-cash accounting
treatment for (i) the warrants to purchase 11,281,877 shares of OXiGENE common
stock which were issued to Symphony Capital on October 17, 2008 and
subsequently exercised in full at the price of $1.11 per share by Symphony
Capital in December 2008 following shareholder approval of the transaction; and
(ii) the additional potential issuances of equity to Symphony under the
transaction agreements previously filed with the Securities and Exchange
Commission. No additional issuance of shares or equity to Symphony is
contemplated at the present time. 

Corporate Update

"In 2008, OXiGENE made significant strides in its clinical development
programs, organizational development and business initiatives. We advanced our
clinical programs, strengthened our leadership position in the vascular
disrupting agent field, completed an important strategic collaboration with
Symphony Capital, established an experienced drug development team and achieved
major corporate objectives," said John A. Kollins, OXiGENE's Chief Executive
Officer. 

Mr. Kollins continued: "As we move into 2009, all of our drug development
programs are on track. Our multi-national, pivotal clinical trial of ZYBRESTAT
in anaplastic thyroid cancer, the FACT trial, is enrolling on target, as is our
randomized, controlled Phase 2 trial in non-small cell lung cancer, the FALCON
trial. Our Phase 2 trial of ZYBRESTAT in platinum-resistant ovarian cancer, for
which we recently reported positive interim data, is fully enrolled, with final
results anticipated mid-2009. An expert advisory panel has strongly recommended
that we conduct a randomized, controlled clinical trial designed to potentially
support registration in ovarian cancer, and we are in the process of developing
further protocols and plans for ZYBRESTAT in this indication." 

Mr. Kollins added: "The strategic partnership we established with Symphony
Capital last quarter is off to a strong start, enabling us to accelerate
initiation of preclinical studies and clinical trials of our second-generation
VDA, OXi4503, and of ZYBRESTAT for ophthalmology. We believe that OXiGENE is in
a strong position in 2009 to build upon the momentum we've established in our
business, execute according to plan and continue to enhance the value of our
therapeutic assets." 

Fourth Quarter 2008 and Recent Highlights

Oncology

 --  In October 2008, OXiGENE announced interim data from the ongoing
     Phase 2 clinical trial of ZYBRESTAT in patients with
     platinum-resistant ovarian cancer showing that 10 of 34 evaluable
     patients achieved a partial response as measured by tumor imaging
     (RECIST) and/or ovarian cancer biomarker (CA-125) criteria. An
     additional unconfirmed partial response was observed in a patient
     lost to follow-up, and stable disease responses were observed in
     an additional nine patients. The combination regimen of ZYBRESTAT
     and chemotherapy appeared to be well-tolerated.

 --  In December 2008, an ovarian cancer expert panel reviewed
     OXiGENE's Phase 2 and other data and unanimously recommended
     initiation of a randomized, controlled clinical trial in ovarian
     cancer designed to potentially support registration. Based on
     these recommendations, and pending final data from the ongoing
     Phase 2 trial, the Company plans to continue development of
     ZYBRESTAT for ovarian cancer. In addition, the Company is
     evaluating potential options for conducting additional trials in
     ovarian cancer in collaboration with a cooperative oncology study
     group, Gynecological Oncology Group (GOG), that has formally
     recommended that OXiGENE perform further trials in ovarian cancer
     and expressed interest in conducting trials with ZYBRESTAT, in
     combination with other therapeutics in ovarian cancer.

Ophthalmology

 --  In January 2008, the Company reviewed positive results from a
     preclinical study with ZYBRESTAT delivered intravenously and
     topically that indicated that target tissue levels achieved with
     topical-route dosing were comparable to or greater than those
     achieved with systemic-route dosing, indicating that
     topical-route administration of ZYBRESTAT should be feasible.

Business Highlights

 --  In October 2008, OXiGENE announced a strategic partnership with
     Symphony Capital that will provide OXiGENE with up to $40 million
     to further advance its pipeline of VDA product candidates for
     cancer and eye disease. Symphony provided initial funding of $15
     million to Symphony ViDA, Inc., a newly-created company that was
     established to accelerate the development of the OXi4503 and
     ZYBRESTAT for ophthalmology programs, and has committed to
     provide up to $10 million of additional funding. OXiGENE has an
     exclusive option, but not the obligation, to purchase the assets
     of Symphony ViDA for a price equal to twice the amount of capital
     actually contributed by Symphony to Symphony ViDA. Symphony has
     also invested $15 million directly in OXiGENE to be used for
     general corporate purposes, including for the development of
     ZYBRESTAT in oncology.

 --  In October 2008, John A. Kollins was appointed OXiGENE's Chief
     Executive Officer and a member of our Board of Directors.

Financial Outlook for 2009

Statements concerning OXiGENE's financial outlook for 2009 are forward-looking
and are based on current expectations. These statements do not include the
impact of potential new business collaborations, equity offerings or other
transactions that may be entered into after February 26, 2009. 

OXiGENE expects cash utilization from operations for fiscal 2009 to range from
$26 million to $34 million, which reflects an increase in activity in all
programs. Consistent with the Company's ongoing commitment to fiscal
responsibility and to maximize cash resources available for ongoing drug
development programs, OXiGENE's management and staff have elected to forgo cash
bonuses and merit-based salary increases at the present time. 

Anticipated Milestones for 2009

Oncology

 --  The Company anticipates that the continuation of the current rate
     of enrollment into the FACT clinical trial would support
     achievement of the trial's enrollment goal, leading to an interim
     analysis in the first half of 2010, with completion of trial
     enrollment by year-end 2010.

 --  In the first half of 2009, the Company expects to report final
     results from the Phase 2 clinical trial of ZYBRESTAT in patients
     with platinum-resistant ovarian cancer at the annual meeting of
     the American Society of Clinical Oncology (ASCO). Based on data
     collected to date and expert recommendations, OXiGENE plans to
     pursue further development of ZYBRESTAT in ovarian cancer.

 --  In the first half of 2009, the Company plans to initiate a Phase
     1b clinical trial of OXi4503 in patients with hepatic tumors.

 --  The Company expects to present preclinical data on OXi4503 in
     acute myeloid leukemia (AML) at the April 2009 annual meeting of
     the American Association of Cancer Research (AACR). The Company
     believes that these data, combined with additional preclinical
     data to be presented by collaborators in the second half of 2009,
     support clinical evaluation of OXi4503 in hematological
     malignancies.

 --  Consistent with the above preclinical findings, the Company is
     formulating a development strategy and anticipates initiating a
     Phase 1b clinical trial of OXi4503 in AML in the third quarter of
     2009.

 --  In the first half of 2009, the Company anticipates completion of
     enrollment in the ongoing Cancer Research United Kingdom
     sponsored Phase 1 clinical trial of OXi4503 in patients with
     advanced solid tumors, with final data from this trial expected
     to be reported by year-end.

 --  In the second half of 2009, the Company expects to report interim
     data from the Phase 2 FALCON clinical trial of ZYBRESTAT in
     patients with non-small cell lung cancer, with final data
     expected to be reported in 2010.

Ophthalmology (ZYBRESTAT)

 --  In the first half of 2009, the Company expects to initiate a
     single-dose, Phase 2, randomized, double-masked,
     placebo-controlled clinical proof-of-mechanism trial of ZYBRESTAT
     for ophthalmology, administered intravenously, in a choroidal
     neovascularization indication.

 --  In parallel, the Company is undertaking a preclinical study
     program designed to support clinical development with
     topical-route ZYBRESTAT.

 --  Subject to positive results of the above studies, the Company
     anticipates it will be in a position to conduct initial clinical
     trials with topical-route ZYBRESTAT in a target choroidal
     neovascularization indication.

Conference Call Today

Members of OXiGENE's management team will host a conference call and webcast to
provide a corporate update and outlook for 2009 today at 4:30 p.m. EST (1:30
p.m. PST). 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 "Investors"
tab, select the link to "Events and Presentations." 

OXiGENE's conference call can also be heard live by dialing (877) 856-1965 in
the United States and Canada, and (719) 325-4798 for international callers,
five minutes prior to the beginning of the call. A replay will be available
starting at 7:30 p.m. EST, (4:30 p.m. PST) on February 26, 2008 and ending at
7:30 p.m. EST (4:30 p.m. PST) on Thursday, March 5, 2009. 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
2203249. 

About ZYBRESTAT (fosbretabulin)

ZYBRESTAT is currently being evaluated in a pivotal registration clinical trial
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 trials 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 trials
in patients with forms of macular degeneration, intravenously-administered
ZYBRESTAT has demonstrated activity, and the Company's objective is to develop
a convenient and patient-friendly topical formulation of ZYBRESTAT for
ophthalmological indications. OXiGENE is developing ZYBRESTAT for ophthalmology
under the strategic drug development partnership it established with Symphony
Capital in October 2008. 

About OXi4503

OXi4503 (combretastatin A1 di-phosphate / CA1P) is a dual-mechanism vascular
disrupting agent (VDA) that is being developed in clinical trials for the
treatment of solid 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 indicate 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 1 dose-escalation trial
in patients with advanced solid tumors. OXiGENE is developing OXi4503 under the
strategic drug development partnership it established with Symphony Capital in
October 2008. 

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 vascular disrupting agents (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 life-enhancing medicines to
patients. 

The OXiGENE, Inc. logo is available at
http://www.globenewswire.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, the enrollment rate for patients in the ZYBRESTAT pivotal trial for
anaplastic thyroid cancer, an interim analysis of the same, reporting of final
results from the Phase 2 clinical trial of ZYBRESTAT in patients with
platinum-resistant ovarian cancer, initiation of a Phase 1b clinical trial of
OXi4503 in patients with hepatic tumors, presentation of preclinical data on
OXi4503 in acute myeloid leukemia, initiation of a Phase 1b clinical trial of
OXi4503 in acute myeloid leukemia, completion of enrollment in the ongoing
Cancer Research United Kingdom sponsored Phase 1 clinical trial of OXi4503 in
patients with advanced solid tumors, timing of reporting final data from the
Phase 1 trial, timing and success of preclinical studies and initiation of a
clinical trial of topical-route ZYBRESTAT, timing of reporting interim and
final data from the Phase 2 clinical trial of ZYBRESTAT in NSCLC, initiation of
a Phase 2 clinical trial of ZYBRESTAT for ophthalmology, administered
intravenously, in a choroidal neovascularization indication, and timing or
execution of a potential strategic collaboration on any product or indication
or any other transaction. 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. 

CONTACT:  OXiGENE, Inc. 
          Investor and Media Contact:
          Michelle Edwards
          650-635-7006
          medwards@oxigene.com