Press

Release

NEW YORK, May 02, 2007 (BUSINESS WIRE) -- ZIOPHARM Oncology, Inc. (NASDAQ: ZIOP), 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, reported a net loss of $5.0 million, or $(0.29) per share for the quarter ended March 31, 2007, compared to a net loss of $3.2 million, or $(0.44) per share, in the first quarter of 2006. Total operating expenses for the first quarter increased by approximately 65% compared to the first quarter of 2006. This increase was attributable to the continued development of ZIO-101 and ZIO-201, as well as the development of ZIO-301, which was acquired by ZIOPHARM in the fourth quarter of 2006. Cash used in operations was $4.5 million in the first quarter. With a financing in February, ZIOPHARM ended the quarter with approximately $52.7 million in total cash and cash equivalents, compared to $28.4 million in cash, cash equivalents, and short-term investments at the end of 2006.

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. For further risk factors see the Company's latest 10-KSB filed with the SEC.

ZIOP-G

SOURCE: ZIOPHARM Oncology, Inc.

Investors:
ZIOPHARM Oncology, Inc.
Suzanne McKenna, Investor Relations, 646-214-0703
smckenna@ziopharm.com
or
Media:
Rx Communications
Tina Posterli, 917-322-2565
tposterli@rxir.com

Copyright Business Wire 2007

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