TUSTIN, Calif., June 23 /PRNewswire-FirstCall/ -- Peregrine Pharmaceuticals (Nasdaq: PPHM) announced today that it has signed a definitive agreement for the offer and sale of eight million shares of common stock to one institutional investor in exchange for net proceeds of $6,720,000. The shares were sold pursuant to the company's shelf registration statement on Form S-3 filed with the Securities and Exchange Commission. The transaction will close no later than June 29, 2005. The company issued no warrants nor paid any commissions in conjunction with the transaction.

"This financing significantly strengthens the financial position of the company," said Steven W. King, Peregrine Pharmaceutical's president and CEO. "This funding will be utilized to advance our three clinical trials, as well as support other pre-clinical studies as we look to expand Tarvacin™'s potential into other indications."

Pursuant to the agreement the Company is unable to file a registration statement for a period of 75 days following the date of the agreement, subject to certain conditions.

About Peregrine Pharmaceuticals, Inc.

Peregrine Pharmaceuticals, Inc. is a biopharmaceutical company with a broad portfolio of products under development directed towards the treatment of cancer, viruses and other diseases. The company is in the process of initiating patient enrollment in a Tarvacin™ clinical trial for the treatment of all solid cancers and in a Cotara® clinical trial for the treatment of brain cancer. In addition, the company has received clearance from the FDA to initiate a Tarvacin™ Phase I clinical trial for the treatment of Hepatitis C virus infection, its first viral indication. Peregrine Pharmaceuticals is also developing Vascular Targeting Agents, Anti- Angiogenesis, and Vasopermeation Enhancement Agents (VEAs) for the treatment of cancer and other diseases.

Peregrine Pharmaceuticals also has in-house expertise to develop and manufacture antibodies and recombinant proteins through its wholly-owned subsidiary, Avid Bioservices, Inc., (http://www.avidbio.com). Avid is engaged in providing contract manufacturing services and development of biologics for biopharmaceutical and biotechnology companies, including Peregrine.

Copies of Peregrine Pharmaceuticals press releases, SEC filings, current price quotes and other valuable information for investors may be found at http://www.peregrineinc.com.

SOURCE Peregrine Pharmaceuticals, Inc.
06/23/2005
CONTACT: Investors, Frank Hawkins, or Ken AuYeung, both of Hawk Associates, Inc., +1-800-987-8256, info@hawkassociates.com; or Media, Rachel Martin of Edelman, +1-323-202-1031, or +1-323-893-9047, Rachel.Martin@edelman.com, all for Peregrine Pharmaceuticals, Inc.
Web site: http://www.peregrineinc.com
http://www.avidbio.com