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., July 6, 2009 (GLOBE NEWSWIRE) -- 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. 

About ZYBRESTAT 

ZYBRESTAT is currently being evaluated in a pivotal registration study in
anaplastic thyroid cancer (ATC) under a Special Protocol Assessment agreement
with the U.S. Food and Drug Administration (FDA). OXiGENE believes that
ZYBRESTAT is poised to become the first therapeutic product in a novel class of
small-molecule drug candidates called vascular disrupting agents (VDAs).
Through interaction with vascular endothelial cell cytoskeletal proteins,
ZYBRESTAT selectively targets and collapses tumor vasculature, thereby
depriving the tumor of oxygen and causing death of tumor cells. In clinical
studies in solid tumors, ZYBRESTAT has demonstrated potent and selective
activity against tumor vasculature, as well as clinical activity against ATC,
ovarian cancer and various other solid tumors. In clinical studies in patients
with forms of macular degeneration, intravenously-administered ZYBRESTAT has
demonstrated activity, and the Company's objective is to develop a topical
formulation of ZYBRESTAT for ophthalmological indications. 

About OXi4503 

OXi4503 (combretastatin A1 di-phosphate / CA1P) is a dual-mechanism vascular
disrupting agent (VDA) that is being developed in clinical studies for the
treatment of solid tumors. Like its structural analog, ZYBRESTAT (fosbretabulin
/ CA4P), OXi4503 has been observed to block and destroy tumor vasculature,
resulting in extensive tumor cell death and necrosis. In addition, preclinical
data indicate that OXi4503 is metabolized by oxidative enzymes (e.g.,
tyrosinase and peroxidases), which are elevated in many solid tumors and tumor
white blood cell infiltrates, to an orthoquinone chemical species that has
direct cytotoxic effects on tumor cells. Preclinical studies have shown that
OXi4503 has (i) single-agent activity against a range of xenograft tumor
models; and (ii) synergistic or additive effects when incorporated in various
combination regimens with chemotherapy, molecularly-targeted therapies
(including tumor-angiogenesis inhibitors), and radiation therapy. OXi4503 is
currently being evaluated as a monotherapy in a Phase 1 dose-escalation study
in patients with advanced solid tumors and in a Phase 1b/2a study in patients
with hepatic tumor burden. 

About Symphony Capital Partners, LP 

Symphony Capital is a New York-based private equity firm that invests in
development stage biopharmaceutical programs. Symphony has the most experienced
team in R&D project-specific financings and invests exclusively in the type of
collaboration undertaken with OXiGENE. Symphony Capital Partners, LP is the
lead investor in Symphony ViDA. Additional information about Symphony is
available at www.symphonycapital.com. 

About RRD International, LLC 

RRD International, LLC (RRD) is a product development company dedicated to
supporting the global regulatory, preclinical and clinical needs of
biotechnology, pharmaceutical and medical device companies. RRD provides
comprehensive strategic planning and operational support from program inception
to product approval including the design, management and execution of clinical
trials. RRD's team of highly experienced drug and device developers has a
substantial record of favorable FDA interactions and outcomes. Through its
customized and flexible business approach, RRD offers a unique risk-sharing
model, enabling its goals and interests to be aligned with a partner company's
success. Additional information about RRD is available at www.rrdintl.com. 

About OXiGENE 

OXiGENE is a clinical-stage biopharmaceutical company developing novel
therapeutics to treat cancer and eye diseases. The company's major focus is
developing vascular disrupting agents (VDAs) that selectively disrupt abnormal
blood vessels associated with solid tumor progression and visual impairment.
OXiGENE is dedicated to leveraging its intellectual property and therapeutic
development expertise to bring life-extending and life-enhancing medicines to
patients. 

The OXiGENE, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4969 

Safe Harbor Statement 

This news release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Any or all of the
forward-looking statements in this press release may turn out to be wrong.
Forward-looking statements can be affected by inaccurate assumptions OXiGENE
might make or by known or unknown risks and uncertainties, including, but not
limited to, enrollment rate for patients in the ZYBRESTAT pivotal trial for
anaplastic thyroid cancer, interim analysis of the same, timing of the IND
filing and Phase 1 trial initiation for topical ZYBRESTAT, timing of a Phase 2
study of ZYBRESTAT and bevacizumab in NSCLC, timing or execution of a strategic
collaboration on any product or indication, and cash utilization rate for 2009.
Additional information concerning factors that could cause actual results to
materially differ from those in the forward-looking statements is contained in
OXiGENE's reports to the Securities and Exchange Commission, including
OXiGENE's reports on Form 10-K, 10-Q and 8-K. However, OXiGENE undertakes no
obligation to publicly update forward-looking statements, whether because of
new information, future events or otherwise. Please refer to our Annual Report
on Form 10-K for the fiscal year ended December 31, 2008. 

CONTACT:  OXiGENE, Inc.
          Investor and Media Contact:
          Michelle Edwards, Investor Relations
          650-635-7006
          medwards@oxigene.com