News Release

OXiGENE announces commencement of Phase I/II clinical trial of Combretastatin A4 Prodrug

Three human trials now underway for CA4P including Phase II study of patients with thyroid cancer initiated in December 2002

Business Announcement

Sharon Merrill Associates, Inc.

WATERTOWN, Mass.-- Jan. 7, 2003-- OXiGENE, Inc. (Nasdaq: OXGN, SSE: OXGN) today announced the initiation of a Phase I/II combination study of its lead vascular targeting agent (VTA), Combretastatin A4 Prodrug (CA4P), in patients with advanced cancer of the lung, head & neck and prostate. These cancers accounted for an estimated 192,500 deaths in the United States in 2002. CA4P became the first VTA to move to an advanced-stage human trial when OXiGENE announced the commencement of a Phase II trial in late December for CA4P in patients with a rare and often incurable form of thyroid cancer.

In the Phase I/II trial, CA4P will be combined with radiotherapy in a dose-escalating study of approximately 30 patients to be conducted at Mount Vernon Hospital in London. The trial protocol has been approved by the United Kingdom's health regulatory authority, the Medicines Control Agency, as well as the hospital's Institutional Ethics Committee. OXiGENE's CA4P represents an emerging class of novel tumor-starving compounds that are designed to selectively damage the vascular structure of solid tumors.

"The combination of CA4P and radiotherapy has shown a high degree of synergy in pre-clinical studies, with a 10-500 fold reduction in tumor cell survival as compared with radiotherapy treatment alone," said Fred Driscoll, OXiGENE's President and CEO. "As a result, we are particularly excited about this next phase of clinical development.

This is the second combination trial of CA4P initiated this year, and we plan to continue pursuing clinical opportunities targeting CA4P at specific cancer indications."

"In the Phase I studies of CA4P given as a single agent, there was compelling imaging data demonstrating blood flow reductions to central tumor regions," said the trial's lead investigator, Peter Hoskin, M.D., clinical oncologist at Mount Vernon Hospital. "In several pre-clinical studies, CA4P was shown to augment the tumor-killing ability of radiation, which is sometimes ineffective in the less oxygenated interiors of the tumor. The potential complementary nature of these therapies is the reason we believe that this combination of treatment modalities holds significant clinical promise."

In addition to the trial announced today, a Phase II study of CA4P in patients with a rare and often incurable form of thyroid cancer recently began at the Ireland Cancer Center at University Hospitals of Cleveland. Approximately 32 patients are expected to be enrolled in that study. Researchers will evaluate CA4P's effectiveness in extending the survival of patients with advanced anaplastic carcinoma of the thyroid (ATC). A key objective will be to determine whether CA4P can double to 12 months the median survival of patients with advanced stages of the disease. ATC is an extremely aggressive disease with a poor prognosis and no established standard treatment therapy.

A Phase Ib trial of CA4P is also underway at the University of Pennsylvania's Presbyterian Medical Center, where researchers are studying the VTA in combination with a chemotherapy drug called Carboplatin.

CA4P attacks the vasculature structure of solid tumors and other diseases characterized by the formation of aberrant blood vessels. The compound triggers a change in the shape of endothelial cells lining a tumor's blood vessels. This in turn blocks the flow of blood to the tumor, depriving it of oxygen and nutrients. The compound is a synthetic form of CA4, a natural substance found in the bark of the South African willow tree known as combretum caffrum. CA4 was identified and isolated in 1987 by Professor G. Robert Pettit, director of the Cancer Research Institute at Arizona State University.

In the Phase I/II trial announced today, researchers plan to use Magnetic Resonance Imaging and Computerized Axial Tomography to measure CA4P's success in stemming blood flow to the tumor. Phase I/II studies are designed to assess the safety, short- and long-term toxicity, maximum tolerated dose and tumor response of the combination therapy.

According to the American Cancer Society, in 2002:

    -- Lung cancer accounted for an estimated 154,900 deaths, 28 percent of all U.S. cancer deaths, and approximately 169,400 new cancer cases.

    -- Prostate cancer caused an estimated 30,200 deaths in the U.S., making it the second leading cause of cancer death in men. The disease resulted in approximately 189,000 new cancer cases.

    -- Head & neck cancer resulted in approximately 7,400 deaths and roughly 28,900 new cancer cases.

About OXiGENE

OXiGENE is the world leader in the development of vascular targeting agents that attack existing blood vessels associated with cancerous tumors and may have an application in the treatment of certain forms of ocular disease and other conditions. OXiGENE 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. For more information about OXiGENE, visit http://www.oxigene.com.

Safe Harbor Statement

This news release about OXiGENE's Phase I/II trial of CA4P contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to: the number of patients to be enrolled in the trial; the site at which CA4P will be evaluated; the objectives of the trial; the suitability of the compound for advanced study; the potential complementary nature of CA4P and radiotherapy; the potential efficacy of CA4P; enrollment in OXiGENE's Phase II study for patients with thyroid cancer and the efficacy of CA4P in that study; CA4P's ability to enable development of normal blood vessels and/or inhibit the growth of aberrant vasculature; the efficacy of OXiGENE's vascular targeting agents in treating cancerous tumors; OXiGENE's ability to develop new drugs that will enhance the effectiveness of traditional cancer treatments; and OXiGENE's ability to introduce innovative therapies that attack cancer and other diseases. 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 ability to successfully enroll patients in the trial; the early stage of product development; uncertainties as to the future success of ongoing and planned clinical trials; and the unproven safety and efficacy of products under development. 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 OXiGENE's reports to the Securities and Exchange Commission, including OXiGENE's 10-Q, 8-K and 10-K reports. However, OXiGENE undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.

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