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OXiGENE Announces Agreement to Acquire Symphony ViDA, Including More Than $12 Million in Unrestricted Cash and All Rights to OXi4503 and ZYBRESTAT for Ophthalmology

SOUTH SAN FRANCISCO, Calif., Jul 6, 2009 (GlobeNewswire via COMTEX News Network) -- OXiGENE, Inc. (Nasdaq:OXGN) (Stockholm:OXGN), a clinical-stage biopharmaceutical company developing novel therapeutics to treat cancer and eye diseases, announced that the Company exercised its option to acquire all of the equity of Symphony ViDA, Inc. in exchange for six million newly-issued shares of OXiGENE common stock, subject to adjustment as described below. Based upon a price of $2.08 per share, the closing market price of OXiGENE common stock on July 2, 2009, the stock has a value of approximately $12.5 million. Upon closing of the transaction, which is expected to occur within thirty days, Symphony Capital will own approximately 44% of the total OXiGENE Common Stock outstanding.

OXiGENE and Symphony have negotiated new terms for the Purchase Option Agreement entered into on October 1, 2008 to satisfy the purchase price for OXiGENE's option to acquire Symphony ViDA. Under the terms of the new Amended and Restated Purchase Option Agreement, the Company will re-acquire all rights to the ZYBRESTAT(tm) for ophthalmology and OXi4503 programs that are currently licensed to Symphony ViDA. In addition, the approximately $12.5 million in cash currently held by Symphony ViDA will become available for use for OXiGENE's general corporate purposes, including funding development of the company's pivotal trial-stage drug candidate, ZYBRESTAT for oncology. In the event that OXiGENE issues additional securities prior to January 2, 2010 at a price lower than $2.08 per share, Symphony will have the right to receive additional securities in an amount reflecting the difference in value of the securities at the time of such subsequent issuance and $2.08 per share.

"We expect this important step in our strategic partnership with Symphony Capital to drive value for all shareholders by enabling us to more efficiently allocate our capital resources across all of our drug development programs," commented John A. Kollins, OXiGENE's Chief Executive Officer. "At the same time, we regain rights to the ZYBRESTAT for ophthalmology and OXi4503 programs and eliminate OXiGENE's future funding obligations of up to $15 million to Symphony ViDA. We anticipate continuing the strong and supportive working relationship we've established with Symphony Capital, which we believe has facilitated significant progress in our drug development programs and associated business initiatives since the beginning of our collaboration last year."

The two members of the Company's Board of Directors appointed by Symphony, Mr. Mark Kessel and Dr. Alastair Wood, will remain on the Board, and the Company expects to maintain its advisory relationships with Symphony and RRD International LLC.

"The additional investment we're making in OXiGENE under this agreement reflects our continued confidence in the Company, its management, and its prospects for success in developing novel and valuable anti-vascular therapeutics for cancer and eye diseases," said Mark Kessel, founder and Managing Director of Symphony Capital.

Conference Call Today

Members of OXiGENE's management team will discuss the restructured relationship with Symphony Capital via a webcast and conference call today at 1:00 p.m. EDT (10 a.m. PDT). To listen to a live or an archived version of the audio webcast, please log on to the Company's website, www.oxigene.com. Under the "Investors" tab, select the link to "Events and Presentations."

OXiGENE's conference call can also be heard live by dialing 800-239-9838 in the United States and Canada, and 913-312-1266 for international callers, five minutes prior to the beginning of the call. A replay will be available starting at 4:00 p.m. EDT (1:00 p.m. PDT) on July 6, 2009 and ending at midnight EDT (9:00 p.m. PDT) on July 20, 2009. To access the replay, please dial 888-203-1112 if calling from the United States or Canada, or 719-457-0820 from international locations. Please refer to replay pass code 1649423.