BioSante Pharmaceuticals Completes $18.3 Million Private Placement of Common Stock.

LINCOLNSHIRE, Ill. -- BioSante Pharmaceuticals, Inc. (AMEX: BPA) today announced that it has completed its previously announced $18.3 million private placement of shares of its common stock and warrants to institutional and other accredited investors. A total of 3,054,999 shares of common stock were sold at a purchase price of $6.00 per share. Investors also received warrants to purchase 763,750 shares of common stock at an exercise price of $8.00 per share. Rodman & Renshaw, LLC served as lead placement agent with Oppenheimer & Co. Inc. serving as an additional placement agent for the transaction. Approximately half of the shares were placed with U.S.-based investors and half with Israel-based investors.

After deducting placement agent commissions and estimated closing expenses, the company received net proceeds of approximately $17.3 million, which will be used to continue and expand BioSante's previously announced Phase III clinical program of LibiGel([R]) for treatment of female sexual dysfunction (FSD), as well as for general corporate purposes. The first of two Phase III safety and efficacy studies of LibiGel was initiated in December 2006.

"This private placement provides us with additional capital to continue moving our hormone therapy programs forward," said Stephen M. Simes, president and chief executive officer of BioSante. "We are pleased that we had an opportunity to add a significant amount of cash to our balance sheet, while still limiting dilution to our stockholders."

Based on its current cash balance and commitments, BioSante believes that with the net proceeds from this private placement, it should be able to maintain its current planned development activities and the corresponding level of expenditures through at least the next eighteen months, although no assurance can be given that it will not need or raise additional financing prior to such time.

The securities sold in this placement have not been registered under the Securities Act of 1933, as amended, or state securities laws, and cannot be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from the registration requirements. As part of the transaction, BioSante has agreed to file a registration statement with the SEC covering the resale of the shares of common stock issued in the offering, including the shares of common stock issuable upon exercise of the warrants. This news release is neither an offer to sell nor a solicitation of an offer to buy any of the securities discussed herein.

About BioSante Pharmaceuticals, Inc.

BioSante is developing a pipeline of hormone therapy products to treat both men and women. These hormone therapy products are gel formulations for transdermal administration that deliver bio-identical estradiol and testosterone. BioSante's lead products include Elestrin[TM] (estradiol gel) developed through FDA approval by BioSante indicated for the treatment of moderate-to-severe vasomotor symptoms associated with menopause, marketed in the U.S. by Bradley Pharmaceuticals, Inc., BioSante's licensee, and LibiGel([R]) (transdermal testosterone gel) in Phase III development by BioSante for the treatment of female sexual dysfunction (FSD). The gel formulations used in Elestrin and LibiGel are licensed from Antares Pharma, Inc. Also in development is Bio-T-Gel[TM], a testosterone gel for male hypogonadism, and an oral contraceptive using BioSante patented technology. The current market in the U.S. for estrogen and testosterone products is approximately $2.5 billion and for oral contraceptives approximately $3.0 billion. The company also is developing its calcium phosphate nanotechnology (CaP) for novel vaccines, including hepatitis B, avian flu and biodefense vaccines for toxins such as anthrax, as well as a system for delivering drugs via alternative routes of administration. Additional information is available online at www.biosantepharma.com.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements regarding BioSante contained in this news release that are not historical in nature, particularly those that utilize terminology such as "may," "will," "should," "likely," "expects," "anticipates," "estimates," "believes," "plans," "hopes," or comparable terminology, are forward-looking statements. Forward-looking statements are based on current expectations and assumptions, and entail various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Important factors known to BioSante that could cause actual results to differ materially from those expressed in such forward-looking statements are the difficulty of developing pharmaceutical products, obtaining regulatory and other approvals and achieving market acceptance, the success of clinical testing, and other factors identified and discussed from time to time in BioSante's filings with the Securities and Exchange Commission, including those factors discussed in BioSante's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, which discussions also are incorporated herein by reference. All forward-looking statements speak only as of the date of this news release. BioSante undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.