Abgenix to Pay for Immgenics Acquisition With Cash Rather Than With Stock.

Business Editors/Health & Medical Writers

FREMONT, Calif.--(BW HealthWire)--Feb. 23, 2001

Abgenix, Inc. (Nasdaq:ABGX) announced today that it intends to pay for its November 2000 acquisition of ImmGenics Pharmaceuticals, Inc., located in Vancouver, Canada, with approximately $77 million in cash, rather than with Abgenix common stock. Pursuant to the terms of the ImmGenics acquisition agreements, on November 13, 2000, Abgenix filed a registration statement with the SEC regarding its potential issuance of stock in connection with the acquisition. As has been the case with several, similarly structured U.S.-Canadian acquisitions, Abgenix's registration statement was filed subsequent to the date on which ImmGenics' stockholders voted to approve the acquisition. The SEC's staff, however, did not approve of this timing. Accordingly, Abgenix requested to withdraw the registration, and today the SEC informed Abgenix that its request would be granted. Pursuant to the original terms of the acquisition, the prior shareholders of ImmGenics now have the right to receive approximately $77 million in cash rather than stock. Abgenix intends to fund the purchase price from cash on hand. As of December 31, 2000, Abgenix had approximately $703 million in cash, cash equivalents and marketable securities.

Abgenix is a biopharmaceutical company focused on the development and commercialization of fully human monoclonal antibody therapies for a variety of diseases. The company's antibody technology platform, which includes XenoMouse(TM) technology, enables the rapid generation and selection of high affinity, fully human antibody product candidates to essentially any disease target appropriate for antibody therapy. Abgenix leverages its leadership position in human antibody technology by building a large and diversified product portfolio through the establishment of licensing arrangements with multiple pharmaceutical, biotechnology and genomics companies and through the development of its own internal proprietary products. For more information on Abgenix, visit the company's website at www.abgenix.com.

Statements made in this press release about Abgenix's XenoMouse technology, product development activities and collaborative arrangements other than statements of historical fact, are forward looking statements and are subject to a number of uncertainties that could cause actual results to differ materially from the statements made, including risks associated with the success of clinical trials, the progress of research and product development programs, the regulatory approval process, competitive products, future capital requirements and the extent and breadth of Abgenix's patent portfolio. Please see Abgenix's public filings with the Securities and Exchange Commission for information about risks that may affect Abgenix.