- Data Presented at 2nd European Conference on Tumor Angiogenesis and Antiangiogenic Therapy Demonstrate Anti-Cancer Potential of New Phospholipid Target -

- Data Also Suggest This Target Can Be Addressed With Peptide or Small Molecule Agents -

TUSTIN, Calif., Sept. 15 /PRNewswire-FirstCall/ -- Peregrine Pharmaceuticals, Inc. (Nasdaq: PPHM), a biopharmaceutical company with a portfolio of innovative, clinical stage products for the treatment of cancer and hepatitis C virus infection, today reported new research that validates a second phospholipid drug target in Peregrine's proprietary anti-phospholipid platform. The data indicated that the new target, known as PE (or phosphatidylethanolamine), can be specifically targeted on tumor blood vessels for anti-cancer applications, similar to the activity of PS (or phosphatidylserine), the target for Peregrine's bavituximab program. The data were presented today by Dr. Philip Thorpe, an inventor of the anti-phospholipid technology, at the 2nd European Conference on Tumor Angiogenesis and Antiangiogenic Therapy in Munich, Germany.

"A growing body of preclinical and clinical data indicates that therapies targeting PS have significant potential as novel immunotherapeutics to treat cancer and viral infections," said Dr. Thorpe, professor of pharmacology at UT Southwestern Medical Center and a member of the Peregrine Scientific Resource Board. "These new data confirm that certain other aminophospholipids share these properties, providing us with the opportunity to develop a variety of anti-phospholipid agents designed to target specific disease states. We look forward to continuing these studies and to assessing how we can apply these findings to develop important new drugs."

Data presented at the conference supported that the new target appears to exhibit many of the same qualities that make PS an attractive drug target. The data showed that therapeutic compounds targeting PE were able to specifically localize to tumor blood vessels, signal the immune system and exert anti-tumor effects against a model of the cancer fibrosarcoma, as had been previously demonstrated by antibodies that bind to PS. However, the new research showed that the new PE target could be addressed using a non-antibody drug candidate, unlike the previous PS studies, which all used monoclonal antibodies for targeting. These results open the door to the possibility that orally available agents such as peptides and potentially even small molecule drugs could eventually become second-generation drug candidates using Peregrine's technology.

"As our lead anti-PS agent bavituximab advances in clinical studies for the treatment of cancer and hepatitis C infection, we are increasingly enthusiastic about the clinical potential of its unique mechanism," said Steven W. King, president and CEO of Peregrine. "These exciting new data show that our anti-PS approach represents a technology platform rather than a single target, and the new target already is included in our anti-phospholipid intellectual property portfolio. We will work with Dr. Thorpe and his colleagues in continuing to explore the potential of these findings for our drug discovery and development efforts."

Peregrine's proprietary anti-phospholipid immunotherapeutic technology uses monoclonal antibodies to target and bind to specific phospholipids that are present on the inner surface of normal cell membranes, but which become exposed for binding on the external surface of cells that line the blood vessels associated with tumors, as well as on certain viruses and the cells they infect. After binding, these agents help stimulate the body's immune defenses to destroy cells that exhibit the specific phospholipid component on their surface.

Peregrine's lead anti-phospholipid agent bavituximab is currently being studied in Phase l clinical trials in the U.S. for the treatment of solid tumors and chronic hepatitis C infection. Clinical data collected to date have shown that bavituximab is safe and well tolerated, and the company has reported promising signs of anti-viral activity in the hepatitis C trial. A solid cancer trial in India combining bavituximab and chemotherapy regimens is expected to start shortly.

About Peregrine Pharmaceuticals

Peregrine Pharmaceuticals, Inc. is a biopharmaceutical company with a portfolio of innovative product candidates in clinical trials for the treatment of cancer and hepatitis C virus (HCV) infection. The company is pursuing three separate clinical trials in cancer and HCV infection with its lead product candidates bavituximab and Cotara®. Peregrine also has in-house manufacturing capabilities through its wholly owned subsidiary Avid Bioservices, Inc. (www.avidbio.com), which provides development and bio-manufacturing services for both Peregrine and outside customers. Additional information about Peregrine can be found at www.peregrineinc.com.

Safe Harbor Statement: Statements in this press release which are not purely historical, including statements regarding Peregrine Pharmaceuticals' intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements which include statements with respect to the potential therapeutic benefits and successful development of drug candidates, involve risks and uncertainties including, but not limited to, the risk that the Company may not be able to develop a drug candidate which effectively targets PE, that risk that any such drug candidate will not be well tolerated or the risk that pre- clinical animal model results will not support a future clinical trial with any such therapeutic compounds. It is important to note that the company's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties associated with completing preclinical and clinical trials for our technologies; the early stage of product development; the significant costs to develop our products as all of our products are currently in development, preclinical studies or clinical trials; obtaining additional financing to support our operations and the development of our products; obtaining regulatory approval for our technologies; anticipated timing of regulatory filings and the potential success in gaining regulatory approval and complying with governmental regulations applicable to our business. Our business could be affected by a number of other factors, including the risk factors listed from time to time in the Company's SEC reports including, but not limited to, the annual report on Form 10-K for the year ended April 30, 2006. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Peregrine Pharmaceuticals, Inc. disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.

SOURCE Peregrine Pharmaceuticals, Inc.

CONTACT: Investors, Barbara Lindheim, +1-800-987-8256, info@peregrineinc.com, or Media, +1-212-918-4650, both of GendeLLindheim BioCom Partners, for Peregrine Pharmaceuticals, Inc.
Web site: http://www.peregrineinc.com