ArQule Announces Completion of Common Stock Offering.

WOBURN, Mass. -- ArQule, Inc. (NASDAQ: ARQL) today announced the completion of its offering of 7,000,000 shares of common stock at $7.75 per share, representing an aggregate public offering price of approximately $54.25 million before deducting underwriting discounts, commissions and offering expenses. In connection with this offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 1,050,000 shares of common stock to cover over-allotments, if any.

ArQule anticipates using the net proceeds from this offering to fund its research and development efforts, including clinical trials, and for general corporate purposes, including working capital.

UBS Investment Bank and CIBC World Markets acted as joint book-running managers for this offering. Leerink Swann & Company, Fortis Securities LLC and Rodman & Renshaw, LLC were co-managers.

Copies of the prospectus supplement and the accompanying prospectus may be obtained from UBS Investment Bank, Attn: Prospectus Department, 299 Park Avenue, New York, NY 10171, Toll Free 888-827-7275, or from CIBC World Markets Corp., Attn: USE Prospectus Department, 425 Lexington Avenue, 5th Floor, New York, NY 10017, Toll Free 866-895-5637; or via email to [e-mail].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About ArQule

ArQule is a biotechnology company engaged in the research and development of next-generation, small-molecule cancer therapeutics. The Company's targeted, broad-spectrum products and research programs are focused on key biological processes that are central to cancer. ArQule's lead clinical-stage products have been generated from two scientific platforms: Cancer Survival Protein modulation and Activated Checkpoint Therapy([R]) (ACT). The Cancer Survival Protein modulation platform has generated a clinical-stage product that mediates its effects by inhibiting the activity of a molecule known as c-Met, which plays multiple roles in cancer cell growth, survival, invasion, angiogenesis and metastasis. The ACT platform is designed to kill cancer cells selectively while sparing normal cells through direct activation of DNA damage response/checkpoint pathways. The Company's lead ACT program, based on the E2F-1 pathway, is partnered with Hoffmann-La Roche.

This press release contains forward-looking statements regarding the Company's potential future financing plans, including with respect to the Company's public offering. These statements are based on the Company's current beliefs and expectations, and are subject to risks and uncertainties that could materially impact forward-looking statements, such as market conditions and related risks and the progress of the Company's clinical programs. You should consider the risk factors identified in the prospectus supplement and accompanying prospectus, and in our SEC filings, including the Forms 10-K and 10-Q and in other SEC filings. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.