Peregrine Pharmaceuticals, Inc. (Nasdaq: PPHM), a clinical stage
biopharmaceutical company developing monoclonal antibodies for the
treatment of cancer and hepatitis C virus (HCV) infection, announced today
that it has entered into a development collaboration with Dios Therapeutics,
Inc., an emerging biotechnology company founded in 2006. Under the terms
of the agreement, Peregrine will provide process development and
manufacturing services and know-how to support early clinical development
for Dios' proprietary humanized monoclonal antibody for the treatment of
thyroid associated ophthalmopathy (TAO) using existing development and
manufacturing capacity once Dios provides Peregrine with its lead humanized
antibody product candidate. In exchange for these development efforts,
Peregrine has the option to convert its development fees into either cash or
equity in Dios at a preferential conversion rate after Phase I trials. Peregrine
also could receive a royalty on net product sales or Dios has the option to buy
out the royalty obligation for a one-time fee which could total up to $50
million dollars. The buy-out option is exercisable anytime for a period up to
two years after first commercial sale. Under the terms of the agreement, Dios
is responsible for all third party expenses related to manufacturing process
development as well as all pre-clinical and clinical trial costs.

"Even with increased demand for our manufacturing services from outside
clients, we continue to seek attractive opportunities such as this to create
value out of our existing manufacturing expertise and capacity," stated David
King, Peregrine's vice president of business development. "We are particularly
pleased to enter into this collaboration with Dios for this exciting first-inclass
technology that has already shown promising signs of activity."

"We are delighted to enter into this strategic relationship with Peregrine
because of its proven capabilities and track record in cGMP manufacturing of
monoclonal antibodies and product development," said Dr. Glenn Albrecht,
Dios' president and chief executive officer. "We believe this collaboration
creates substantial opportunities and upside potential for both companies
and is a sign of the potential value of our company and our novel
therapeutic."

About Dios Therapeutics
Dios Therapeutics, Inc. is an emerging biotechnology company focused on
developing non-immunosuppressing therapeutics for the treatment of
multiple autoimmune indications including Graves disease, Hashimoto
disease and rheumatoid arthritis. The Company was founded in 2006 with the
aim of commercializing potentially path breaking discoveries from the
University of California, Los Angeles. Dios will use these novel molecular
insights to develop better autoimmune disease therapeutics without the
generalized immune suppression associated with current therapies. The
Company is initially focusing on developing therapeutics to treat thyroid
associated ophthalmopathy (TAO), a severe form of Graves disease that can
lead to vision loss.

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 five
separate clinical trials in cancer and HCV infection in the U.S. and India with
its lead product candidates bavituximab and Cotara(R). Peregrine also has inhouse
manufacturing capabilities through its wholly owned subsidiary Avid
Bioservices, Inc. (www.avidbio.com), which provides development and biomanufacturing
services for both Peregrine and outside customers. Additional
information about Peregrine can be found at http://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. Such
statements include, but are not limited to, the statement that potential
royalties or one-time fee to be paid to the Company that could exceed $50
million. The forward-looking statements involve risks and uncertainties
including, but not limited to, the risk that Dios will not raise sufficient capital
to initiate its initial Phase I clinical trial, raise sufficient capital or find a
development partner to finance the significant costs associated with
obtaining regulatory approval, the risk that this drug candidate may not
demonstrate safety or efficacy data sufficient to support clinical trials beyond
Phase I, the risk that the drug candidate may never obtain regulatory approval
and the risk that even if the drug candidate obtains regulatory approval
anticipated commercial sales do not support the payment of the $50 million
one-time fee to the Company.