ZIOPHARM Oncology Reports Second Quarter Financial Results

NEW YORK--(Business Wire)--
ZIOPHARM Oncology, Inc. (NASDAQ: ZIOP) announced today its
financial results for the three and six-month periods ended June 30,
2008.

The Company reported a net loss for the second quarter of 2008 of
$6.5 million, or $(0.31) per share, compared with a net loss for the
second quarter of 2007 of $6.5 million, or $(0.31) per share. Total
operating expenses for the quarter were $6.6 million, compared with
$7.2 million for the same quarter in the prior year. The decrease was
primarily due to a reduction in product manufacturing for darinaparsin
and palifosfamide, and a successful effort to effectively manage
costs. Cash used in operations during the second quarter 2008 was $6.4
million, compared with $5.8 million used in the second quarter 2007.

The Company reported a net loss in the six-month period ended June
30, 2008 of $15.1 million, or $(0.71) per share, compared with a net
loss of $11.6 million, or $(0.60) per share, in the same period of the
prior year. Total operating expenses for the six months ended June 30,
2008 increased by 22.2% to $15.4 million as compared with total
operating expenses of $12.6 million in the same period in the prior
year. Cash used in operations was $13.8 million for the first six
months of 2008, compared with $10.3 million used in the first half of
2007. ZIOPHARM ended the six-month period with approximately $21.1
million in total cash and cash equivalents. With the current cash
position, realignment of priorities and a completed workforce
adjustment we expect our cash to last late into the third quarter of
2009.

Highlights since the beginning of the second quarter 2008
included:

-- Presentation of positive clinical data of darinaparsin in
patients with advanced hematological malignancies, including leukemias
and lymphomas, at the American Association for Cancer Research (AACR)
Annual Meeting; where therapy with darinaparsin was well tolerated
and, among 7 lymphoma patients evaluable for efficacy, 1 patient with
peripheral T-cell lymphoma achieved a complete response, one patient
with Hodgkin's lymphoma (nodular sclerosis) achieved an interval
response, and one patient with B-cell lymphoma achieved stable disease
and, among 14 leukemia patients evaluable for efficacy, 6 patients
achieved stable disease

-- Granting of Orphan Drug Designation by the United States Food &
Drug Administration (FDA) for palifosfamide (ZIO-201) in the treatment
of Soft Tissue Sarcoma (STS), a disease with significant unmet medical
need beyond locally effective surgery.

-- Promotion of Robert Morgan, JD, to Senior Vice President,
Regulatory Affairs, Quality, and Clinical Development, and Janice
Stevens, RN, to Vice President, Clinical Operations. The appointment
of Jonathan Lewis, MD, PhD, Chief Executive Officer of ZIOPHARM to the
role of Chief Medical Officer following the departure of Brian
Schwartz, MD, formerly Chief Medical Officer.

-- Expansion of the Company's intellectual property estate through
the Notice of Allowance from the U.S. Patent and Trademark Office for
patent applications numbered 11/252,966 and 11/349,043, covering
claims for various organic arsenic compounds, including purified
crystalline darinaparsin (ZIO-101), glycolic arsenicals, and the oral
pharmaceutical composition of an organic arsenic compound, and their
use in the treatment of cancer.

Jonathan Lewis, MD, PhD Chief Executive and Chief Medical Officer
of ZIOPHARM, commented, "We have made encouraging progress in a number
of key areas during the second quarter, including intellectual
property, clinical data and regulatory achievement. We look forward to
reaching additional clinical milestones over the balance of the year,
while remaining focused on conserving capital and minimizing expenses
during a challenging period for the financial markets."

About ZIOPHARM Oncology, Inc.

ZIOPHARM Oncology, Inc. is a biopharmaceutical company engaged in
the development and commercialization of a diverse, risk-sensitive
portfolio of in-licensed cancer drugs to address unmet medical needs.
The Company applies new insights from molecular and cancer biology to
understand the efficacy and safety limitations of approved and
developmental cancer therapies and identifies proprietary and related
molecules for better patient treatment. For more information, visit
www.ziopharm.com.

Forward-Looking Safe Harbor Statement:

This press release contains forward-looking statements for
ZIOPHARM Oncology, Inc. that involve risks and uncertainties that
could cause the Company's actual results to differ materially from the
anticipated results and expectations expressed in these
forward-looking statements. These statements are based on current
expectations, forecasts and assumptions that are subject to risks and
uncertainties, which could cause actual outcomes and results to differ
materially from these statements. Among other things, there can be no
assurance that any of the Company's development efforts relating to
its product candidates will be successful, or such product candidates
will be successfully commercialized. Other risks that affect
forward-looking information contained in this press release include
the possibility of being unable to obtain regulatory approval of the
Company's product candidates, the risk that the results of clinical
trials may not support the Company's claims, and risks related to the
Company's ability to protect its intellectual property and its
reliance on third parties to develop its product candidates. The
Company assumes no obligation to update these forward-looking
statements, except as required by law.

ZIOP-E

ZIOPHARM Oncology, Inc.
Suzanne McKenna, 646-214-0703
smckenna@ziopharm.com
or
Argot Partners
Andrea Rabney, 212-600-1902
andrea@argotpartners.com

Copyright Business Wire 2008