ILEX Oncology Announces Actions At Annual Meeting; CAMPATH Progress Toward Commercialization Outlined.

SAN ANTONIO--(BUSINESS WIRE)--May 26, 1999--

Stockholders of ILEX(tm) Oncology Inc. (NASDAQ:ILXO) today re-elected all eight members of the board of directors and ratified the appointment of Arthur Andersen as independent public accountants during the Company's annual meeting of stockholders.

In order to prepare for potential corporate partnerships, licensing activities and future financings, the board of directors approved a write-off of up to $20 million in largely non-cash value of investments in affiliates and certain other non-productive assets in the Services business.

Updating stockholders at the annual meeting, Richard L. Love, President and Chief Executive Officer, said, "Getting CAMPATH(R) approved and on the market is our highest priority as a company, and I'm happy to report that we are making good progress. As you know, we are developing CAMPATH(R), with our partner LeukoSite, for patients with CLL (chronic lymphocytic leukemia), a slowly progressive disease with a high mortality rate.

"CAMPATH(R) represents a novel approach to the treatment of patients with this disease, which is the most prevalent form of adult leukemia. If approved, CAMPATH(R) would be the first humanized monoclonal antibody on the market specifically developed for the treatment of patients with CLL -- and one of the first monoclonals available for treatment of cancer.

"Several of us from ILEX just returned from the ASCO conference, where the two educational sessions on CLL were filled to capacity with physicians, patients and investors. It was clear from the presentations made there that the treatment paradigm in CLL is changing. New hope is at hand -- hope expressed by the physicians who have treated patients with CAMPATH(R) and observed its clinical potential first-hand."

Overall results of the recently completed pivotal Phase II trial of CAMPATH(R) in patients with CLL will be presented June 9-12 at the European Hematology Association Congress in Barcelona, Spain. Dr. Michael Keating from the M.D. Anderson Cancer Center in Houston will present the trial results.

"With the trial completed and the database locked, we are on track to file the U.S. marketing application for CAMPATH(R) this year," Love said. He noted that the FDA has given CAMPATH(R) "Fast Track" status, paving the way for an expeditious review of the application once the filing has been completed.

"We are also making good progress toward the selection of a marketing partner for the drug," Love continued. "Advanced negotiations are under way, and we hope to announce the results in the near future. Our overall goal, subject to FDA approval of course, is to launch CAMPATH(R) in the first half of the year 2000. This has been our target for some time, and we are still on that timetable."

ILEX Oncology Inc. is a drug development company focused exclusively on accelerated development of drugs for the treatment and prevention of cancer. The company does this in two ways: by advancing a diversified portfolio of anticancer drugs through its ILEX Products subsidiary, and, by offering drug development services on a contract basis to pharmaceutical and biotech companies through its ILEX Oncology Services subsidiary. These complementary businesses draw from the company's core expertise: relationships with international oncology experts, strategic alliances that provide unparalleled access to patient recruitment for clinical trials, and simultaneous European and U.S. drug development and approval capabilities.

Further information about ILEX(tm) Oncology can be found on the World Wide Web at http://www.ilexoncology.com.

Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, risks in technology and product development, failure to successfully complete clinical trials, failure to receive market clearance from regulatory agencies, competitive risks and those risks and uncertainties discussed in filings made by ILEX Oncology Inc. with the Securities and Exchange Commission. The company disclaims any obligation to update these forward-looking statements.