OXiGENE Announces Restructuring to Focus Resources on Key Programs and Provides Business Update

SOUTH SAN FRANCISCO, Calif., Feb. 11, 2010 (GLOBE NEWSWIRE) -- OXiGENE,
Inc. (Nasdaq:OXGN) (Stockholm:OXGN), a clinical-stage,
biopharmaceutical company developing novel therapeutics to treat cancer
and eye diseases, announced today a restructuring plan designed to
focus resources on the company's highest-value clinical assets and
reduce its cash utilization. Key aspects of the restructuring and its
effects on the Company's current clinical trials are as follows:

  --  OXiGENE will continue to advance its high-priority Phase 2 ZYBRESTAT
      trial in non-small cell lung cancer (FALCON study), with updated safety
      and efficacy results anticipated for presentation at the upcoming
      American Society of Clinical Oncology (ASCO) meeting in June 2010.
  --  OXiGENE plans to stop further enrollment in the Phase 2/3 FACT clinical
      trial in anaplastic thyroid cancer (ATC), but will continue to treat and
      follow all patients who are currently enrolled. A survival analysis is
      anticipated in early 2011. The Company expects this plan to optimize its
      ability to gain useful additional insight into ZYBRESTAT's antitumor
      activity earlier than the previously anticipated timeline, while also
      reducing cash utilization in 2010 and subsequent years.
  --  The OXi4503 Phase 1b trial in patients with hepatic tumors will continue
      with an interim analysis expected in mid-2010.
  --  The Phase 2 FAVOR study of ZYBRESTAT in polypoidal choroidal
      vasculopathy (PCV), a form of macular degeneration, will continue with
      an interim analysis expected in the first half of 2010.
  --  Future development decisions concerning the OXi4503 program and the
      ZYBRESTAT for ophthalmology program will be made following these
      analyses and additional review by OXiGENE's management and board of
      directors.
  --  In addition, the Company is reducing its workforce by 20 employees or
      approximately 49%.

"OXiGENE's management and board have determined that the optimal course
of action is to focus our resources on advancing our Phase 2 ZYBRESTAT
non-small cell lung cancer trial (FALCON), which we believe is our most
promising clinical program, while reducing the level of investment in
other clinical programs," said Peter Langecker, M.D., Ph.D., OXiGENE's
Chief Executive Officer. "The focusing of our clinical resources on
what we believe are our most promising opportunities as well as the
reduction in force is designed to strengthen our ability to achieve our
key objectives for 2010 while potentially allowing us to demonstrate
the therapeutic value of our clinical programs earlier. A reduction in
force is never an easy decision to make, especially as we have such an
excellent team here at OXiGENE. We want to express our sincere
appreciation and gratitude to the employees who are affected by this
restructuring, and we wish them well in future endeavors."

The Company is offering severance benefits to the terminated employees,
and anticipates recording a charge of approximately $600,000, primarily
associated with personnel-related termination costs, which will be
recognized in the first quarter of 2010. Substantially all of the
charge is expected to represent cash expenditures. Beginning in the
second quarter of 2010, the Company expects the reduction to generate
annual expense savings of approximately $2.6 million.

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, the available options
for realizing value in the Company's product candidates. 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:
          Investor Relations
          Michelle Edwards
          650-635-7006
          medwards@oxigene.com