OXiGENE Reports First Quarter 2002 Financial Results; Company Expects to Begin Phase Ib Combination Study of CA4P in the Next Few Months.

Business Editors and Medical Writers

WATERTOWN, Mass.--(BUSINESS WIRE)--April 26, 2002

OXiGENE, Inc. (NASDAQ: OXGN, SSE: OXGN), a biopharmaceutical company developing novel anti-tumor drug compounds that target the vasculature structure of solid tumor cancers, today announced financial results for the first quarter ended March 31, 2002.

OXiGENE reported a net loss for the quarter of $4.2 million, or $0.35 per share, on revenue of $0.1 million. This compares with a net loss of $2.1 million, or $0.19 per share, on revenue of $1.1 million, for the first quarter of 2001. During the quarter, the Company recorded a substantial one-time non-cash charge of $2.3 million for expenses relating to a stock award program. The reported operating expenses for the quarter of $5.6 million would have been $3.3 million absent this one-time non-cash charge. Additionally, the Company recorded a non-recurring gain of $1.3 million ($2.0 million from proceeds of the sale less a write-off of $0.7 million of the net, original investment to Peregrine Pharmaceuticals, Inc.) for the sale of Arcus Therapeutics, LLC.

The Company ended the first quarter of 2002 with cash and marketable securities totaling $18.2 million, which included a one-time benefit of $2.0 million associated with the sale of Arcus Therapeutics, LLC, versus $19.0 million at the end of 2001.

"As our actions in recent months demonstrate, we are concentrating exclusively on developing our vascular targeting platform as a frontline treatment against solid tumor cancers," said Frederick Driscoll, OXiGENE's president and CEO--elect. "Toward that end, we expect to begin a Phase Ib combination trial of CA4P within the next few months. We also are planning the launch of a Phase II trial in the second half of 2002."

In April 2002, the Company finalized an agreement to license its Benzamide compound, Declopramide, to Active Biotech AB (Active) for all indications. Active will focus the majority of its Declopramide research on Inflammatory Bowel Disease (IBD). In earlier studies involving animal models, Declopramide had shown unexpectedly positive results for the treatment of IBD. OXiGENE will supply all of its existing documentation and results from its Phase I Declopramide trials to Active. Active will assume all responsibilities for development of the compound. The companies will share any future milestone and royalty payments resulting from Declopramide.

"This agreement concludes the outlicensing of products outside of our core technology platform," said Driscoll. "We have reduced our future burn rate by aggressive cost-cutting and the streamlining of programs that were outside of our core platform. Based on our current cost structure, we believe that our cash position will provide OXiGENE with the capital necessary over the next three years to complete the clinical development of our lead vascular targeting agent, Combretastatin A4 Prodrug."

Recent Company highlights include:

-- OXiGENE's Board of Directors appointed Mr. Driscoll as CEO, to replace Bjorn
Nordenvall, M.D., Ph.D. Dr. Nordenvall will step down as CEO and plans to
return to Sweden, but he will remain on the board as vice chairman and will
serve as a strategic consultant to the Company. Additionally, Mr. William
Shiebler, CEO of the Americas for Deutsche Asset Management, a member of the
Deutsche Bank Group, joined the board as an independent director.

-- The Company and Peregrine Pharmaceuticals, Inc. concluded their Arcus
Therapeutics, LLC joint venture. Under the terms of the termination agreement,
Peregrine paid OXiGENE $2 million, and each company reacquired full rights to
the technology platforms that they had contributed to the joint venture. The
conclusion of Arcus will allow OXiGENE to dedicate more resources to the human
clinical testing of CA4P.

-- The Company announced study results that will be published in the May 2002
edition of the International Journal of Cancer, performed by researchers at the
University of Florida. Using a mouse model of human breast and ovarian
cancerous tumors treated with VTAs, including CA4P, and the chemotherapeutic
agents cisplatin and cyclophosphamide (CP), researchers reported that CA4P
enhanced the effectiveness of chemotherapeutic agents in solid tumor cancers.

-- The Company presented pre-clinical data from its next-generation vascular
targeting agent, Oxi-4503, at the American Association for Cancer Research 93rd
Annual Meeting in San Francisco. Using a mouse system, clinical investigators
induced complete regression of human breast cancer. OXiGENE plans to continue
further pre-clinical studies of Oxi-4503 with the aim of moving the compound
toward Phase I clinical trials.

-- OXiGENE announced the findings of a new independent study identifying CA4P
as a possible novel treatment for proliferative retinopathy, a form of
blindness in patients with advanced diabetes. The study, the results of which
were published in the March 2002 edition of the American Journal of Pathology
(AJP), was performed by researchers at the University of Cambridge in the
United Kingdom.

-- Earlier this month, OXiGENE announced the completion of a preclinical
program designed to evaluate CA4P as a potential treatment for ocular diseases.
Data from this preclinical program will be presented in early May at the annual
meeting of the Association for Research in Vision and Ophthalmology (ARVO) in
Ft. Lauderdale, Florida.

"Our ocular program underscores the wide-ranging potential of CA4P as a treatment for various ocular diseases characterized by neovascularization," Driscoll said. "Consequently, we are actively seeking to license the technology to a partner with the resources to advance the clinical development of CA4P for ophthalmic indications."

Company to Host Conference Call

OXiGENE will hold a conference call at 10:00 a.m. ET today to discuss the company's first quarter fiscal 2002 financial results. Domestic callers may dial 1-800-618-9690 and international callers may dial 1-415-908-4722 to listen to the call. To access a live audio Webcast of the conference call, please visit the following URL on the Internet: www.corporate-ir.net/ireye/ir_site.zhtml?ticker=OXGN&script=1000

Please allow extra time prior to the call to visit the site and download the streaming media software required to listen to the Internet broadcast. The online archive of the broadcast will be available within two hours of the live call for a period of 30 days. A re-broadcast of the teleconference will be available two hours after the call until noon ET on April 28, 2002 by dialing 1-800-633-8284 from the U.S. or 1-858-812-6440 from abroad. Replay callers, please use passcode: 20516425.

About OXiGENE

OXiGENE, an international biopharmaceutical company, is the world leader in vascular targeting agents that destroy existing blood vessels associated with cancerous tumors, and which may have an application in the treatment of restenosis, certain forms of ocular disease and other conditions. The Company is using its proprietary vascular targeting technology to develop new drugs that will enhance the effectiveness of traditional cancer treatments and to introduce innovative therapies that attack cancer and other diseases.

Safe Harbor Statement

This news release contains forward-looking statements made under the Private Securities Litigation Reform Act of 1995. These statements include: the expected timeframe of the Company's planned Phase Ib and Phase II clinical trials of CA4P; the possible use of CA4P as a novel treatment for proliferative retinopathy; the Company's plans to continue further pre-clinical studies of Oxi-4503 with the aim of moving the compound toward Phase I clinical trials; and the Company's ability to successfully license CA4P to a partner in the ophthalmic area who has the capabilities to continue the clinical development of CA4P in various ocular indications. Any or all of the forward-looking statements in this press release may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties, including, but not limited to, the Company's history of losses, anticipated continuing losses and uncertainty of future profitability; the early stage of product development; uncertainties as to the future success of ongoing and planned clinical trials; the unproven safety and efficacy of products under development; the sufficiency of the Company's existing capital resources; the possible need for additional funds; uncertainty of future funding; the Company's dependence on others for much of the clinical development of its drugs under development, as well as for obtaining regulatory approvals and conducting manufacturing and marketing of any product candidates that might successfully reach the end of the development process; the impact of government regulations, health care reform and managed care; competition from other companies and other institutions pursuing the same, alternative or superior technologies; the risk of technological obsolescence, and uncertainties related to the Company's ability to obtain adequate patent and other intellectual property protection for its proprietary technology and product candidates; dependence on officers, directors and other individuals; and risks related to product liability exposure. Consequently, no forward-looking statement can be guaranteed, and actual results may vary materially. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements are contained in our reports to the Securities and Exchange Commission including our 10-Q, 8-K and 10-K reports. However, we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.

OXiGENE, Inc.
Consolidated Balance Sheet
(All amounts in thousands US Dollars)

                                             March 31   December 31,
Assets                                         2002         2001

Current Assets:                             (Unaudited)  (Audited)

  Cash                                       $ 16,525    $ 19,030
  Available-for-sale marketable securities      1,671         --
  Other current assets                            313         470

       Total current assets                    18,509      19,500

  Net property and equipment                      592         630
  Other assets                                  1,317       2,023

Total assets                                 $ 20,418    $ 22,153

Liabilities and stockholders' equity
Current Liabilities:
  Amount payable for license
   agreement - current                       $    273    $    270
  Accrued expenses                              1,862       1,783
  Accounts payable                              1,208       1,139

    Total current liabilities                   3,343       3,192

       Amount payable under license
        agreement - non-current                   454         442

Stockholders' equity
  Common stock                                    123         114
  Additional paid-in capital                   84,067      82,385
  Accumulated deficit                         (64,811)    (60,641)
  Notes receivable                             (2,657)     (3,765)
  Other                                          (101)        426

       Total stockholders' equity              16,621      18,519

Total liabilities and stockholders' equity   $ 20,418    $ 22,153



OXiGENE, Inc
Consolidated Statement of Operations
(All amounts in thousands US Dollars,         3 months  3 months
  except per share amounts)                     ended     ended
                                                Mar 31,  Mar 31,
                                                 2002     2001
                                                  (unaudited)

Revenues:
  Licensing revenue                              $ --       $757
  Interest income                                  79        352

     Total revenues                                79      1,109

Expenses:
  Costs relating to licensing revenue              --        624
  Amortization of license agreement                20         74
  Operating expenses                            5,539      2,537

     Total expenses                             5,559      3,235

Operating loss                                 (5,480)    (2,126)

  Gain on sale of Joint Venture                 1,325         --
  Other expense, net                              (16)       (17)

Net loss                                      $(4,171)   $(2,143)


Net loss per common share:
      Basic                                    $(0.35)    $(0.19)
      Diluted                                  $(0.35)    $(0.19)

Shares used to compute net loss per share:
      Basic                                    11,961     11,376
      Diluted                                  11,961     11,376