Antigenics Reports Fourth Quarter and Year-End 2002 Results.

Business Editors/Health/Medical Writers

BIOWIRE2K

NEW YORK--(BUSINESS WIRE)--Feb. 19, 2003

Antigenics Inc. (NASDAQ: AGEN) reported today financial results and operating highlights for the quarter and year ended December 31, 2002.

For the three months ended December 31, 2002, the company incurred a net loss of $16.3 million, or $0.49 per share, basic and diluted, compared with a net loss of $13.8 million, or $0.48 per share, basic and diluted, for the same period in 2001. For the year ended December 31, 2002, Antigenics incurred a net loss of $55.9 million, or $1.70 per share, basic and diluted, compared with a net loss of $73.5 million, or $2.61 per share, basic and diluted, for the same period in 2001, which includes a non-recurring, non-cash charge to operations of $34.6 million for the write-off of in-process research and development acquired in Antigenics' merger with Aronex Pharmaceuticals.

On December 31, 2002, Antigenics had $58.7 million in cash, cash equivalents and short-term investments. In January 2003, the company increased its cash, cash equivalents and short-term investment balance by completing a $62 million public offering of common stock, raising proceeds of approximately $59.6 million after deducting underwriting discounts and expenses related to the offering.

Revenues for the three months and year ended December 31, 2002, were $0.8 million and $3.4 million, respectively, compared with $1.6 million for the three months ended December 31, 2001, and $4.6 million for the year ended December 31, 2001. Total research and development expenses for the three months and year ended December 31, 2002, were $11.5 million and $40.0 million, respectively, compared with $9.8 million and $31.4 million for the same periods in 2001. Total general and administrative expenses for the three months and year ended December 31, 2002, were $5.8 million and $19.5 million, respectively, compared with $3.4 million and $13.8 million for the same periods in 2001.

"2003 is a pivotal year for Antigenics, as our cancer therapeutic Oncophage may generate clinical data that can be used for product registration applications," said Garo H. Armen, PhD, chairman and CEO of Antigenics. "In addition, we are very pleased with the successful completion of our $62 million follow-on offering, which puts us in a stronger financial position to execute on our key projects as we embark on our prelaunch activities."

Highlights of Antigenics' accomplishments in 2002 include:

Clinical and Regulatory Developments

-- Enrollment for the Phase III trial in renal cell carcinoma exceeded projections, with approximately 65 percent of the trial enrolled by year-end 2002. Antigenics plans to complete enrollment by midyear and expects to complete an interim analysis by year-end 2003. In addition, enrollment began for the Phase III trial of Oncophage in metastatic melanoma. There are currently more than 160 clinical sites open worldwide for both Phase III trials, including Canada, Europe, Australia, Israel and Russia.

-- The Journal of Clinical Oncology published positive final results from a Phase II study in metastatic melanoma showing that treatment with Oncophage was associated with both immunological and clinical response - including two complete responses - and appeared generally safe and well tolerated. Other publications in peer-reviewed journals include the Journal of the National Cancer Institute, Cancer and Urologic Oncology.

-- Interim results from five clinical trials were announced at the 38th annual meeting of the American Society of Clinical Oncology. These data showed that several patients with melanoma, gastric or colorectal cancers appeared to benefit clinically from receiving Oncophage. During the American Association for Cancer Research's annual meeting, positive immunological results from the Phase II trials of Oncophage in the treatment of melanoma and colorectal cancer were presented.

-- Antigenics reported encouraging data from the pilot study combining its personalized cancer vaccine, AG-858, with Gleevec(TM) (imatinib mesylate, Novartis) for patients with chronic myelogenous leukemia. Antigenics plans to initiate a Phase II trial in 2003.

-- A Phase II study of Aroplatin as a monotherapy for colorectal cancer was initiated at the Arizona Cancer Center, results from which are expected in the first half of 2003. Antigenics is also evaluating Aroplatin monotherapy in a Phase I/II trial involving patients with advanced solid tumors, and plans to initiate Phase II trials of Aroplatin in combination treatment for additional cancers.

-- Phase I data presented at the Fifth Annual Vaccine Conference of the National Foundation for Infectious Diseases showed that elderly adults had significantly higher levels of immune response with Quilimmune-P, Antigenics' pneumococcal vaccine, as compared with commercially available vaccines.

-- In addition to the first fast track designation received for Oncophage (for renal cell carcinoma, 2001), Oncophage received a second fast track designation in 2002 for treatment of metastatic melanoma. Oncophage was also granted orphan drug designations for renal cell carcinoma and melanoma.

Corporate Developments

-- Antigenics completed a $60 million follow-on offering of

common stock in January 2002, raising proceeds of

approximately $56 million after deducting underwriting

discounts and expenses related to the offering.

-- Antigenics' proprietary heat shock protein technology platform

was expanded with the issuance of 24 new US-issued patents,

bringing the total number of issued patents in Antigenics'

intellectual property portfolio to more than 80 worldwide.

-- Russell H. Herndon was promoted to the newly created position

of president and chief operating officer.

-- Deanna Petersen, formerly of Coley Pharmaceutical Group Inc.,

was hired to serve as vice president of business development.

-- Antigenics' board of directors appointed Frank V. AtLee III as

its newest member.

Conference Call Information

Antigenics executives, including Chairman and CEO Garo Armen, PhD, and Chief Medical Officer Jonathan Lewis, MD, PhD, will host a conference call at 11:00 AM ET today. To access the live call, dial 877.416.2362 (domestic) or 706.679.3010 (international). The call will also be webcast and will be accessible from the company's website at www.antigenics.com/investors/. A replay will be available approximately two hours after the call through midnight ET on March 5, 2003. The replay number is 800.642.1687 (domestic) or 706.645.9291 (international), and the access code is 7416344. The replay will also be available at www.antigenics.com.

About Antigenics

Antigenics' mission is to enhance and extend lives through the development of superior health care products for a wide range of cancers, infectious diseases and autoimmune disorders. The company's lead product is Oncophage, a personalized cancer vaccine in Phase III trials and granted fast track and orphan drug designations by the US Food and Drug Administration for kidney cancer and melanoma. Antigenics' cancer portfolio also includes AG-858, a personalized cancer vaccine entering Phase II development for chronic myelogenous leukemia, and two Phase II liposomal products: Aroplatin, a third-generation platinum chemotherapeutic, and ATRA-IV, a form of vitamin A. Other products in development include QS-21, an immune adjuvant being tested in several advanced clinical vaccine programs in partnership with leading pharmaceutical companies, and AG-702/X, a genital herpes program in Phase I. For more information about the company, please visit www.antigenics.com.

This press release contains forward-looking statements, including the statements regarding generating clinical data in 2003 that supports product registration applications for Oncophage; the timing of completion of enrollment in the Phase III clinical trial in renal cell carcinoma and the timing of interim analysis of data from that trial; the timing of initiation of Phase II clinical trials of (a) AG-858 with Gleevec(TM) (imatinib mesylate, Novartis) and (b) Aroplatin in combination treatment; and the timing of results from the Phase II study of Aroplatin as a monotherapy. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others, that we may not be able to enroll sufficient numbers of patients in our clinical trials; that enrollment rates may be slower than we expect; that our clinical trials may not demonstrate that our products are both safe and more effective than current standards of care; that we may be unable to obtain the regulatory approvals necessary to conduct additional clinical trials or to market products; that we may fail to adequately protect our intellectual property or are determined to infringe on the intellectual property of others; and the factors described in the company's periodic filings with the Securities and Exchange Commission. Please see Exhibit 99.1 of the Antigenics Quarterly Report on Form 10-Q for the quarter ended September 30, 2002, for a full discussion of these risk factors. We caution investors not to place undue reliance on the forward-looking statements contained in this document. These statements speak only as of the date of this document, and we undertake no obligation to update or revise the statements. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.

              SUMMARY CONSOLIDATED FINANCIAL INFORMATION
              Consolidated Statements of Operations Data
                 (in thousands, except per share data)
                              (unaudited)


                              Three months ended        Year ended
                                 December 31,           December 31,
                               2001       2002        2001       2002
                           ---------------------- --------------------

Revenue                      $1,599        804       4,555      3,412

Expenses:
 Cost of sales                 (376)      (345)     (1,064)    (1,337)
 Research and development    (9,752)   (11,497)    (31,357)   (39,983)
 General and
  administrative             (3,425)   ( 5,779)    (13,762)   (19,467)
 Acquired in-process
  research and
  development                (2,160)         -     (34,596)         -
                           ---------------------- --------------------
      Operating loss        (14,114)   (16,817)    (76,224)   (57,375)

Other income, net               309        488       2,683      1,497
                           ---------------------- --------------------

      Net loss             $(13,805)   (16,329)    (73,541)   (55,878)
                           ====================== ====================

Net loss per share,
   basic and diluted         $(0.48)     (0.49)      (2.61)     (1.70)
                           ====================== ====================

Weighted average number
 of shares outstanding,
 basic and diluted
                         26,002,477 33,088,491  28,142,598 32,905,315
                         ====================== ======================



                    Consolidated Balance Sheet Data
                             (in thousands)
                              (unaudited)

                            December 31, 2001      December 31, 2002

Cash, cash equivalents
 and short-term investments      $60,868                  58,725

Total assets                      93,546                  89,063

Total stockholders' equity        75,925                  77,757