PONIARD PHARMACEUTICALS REPORTS 2ND QTR NET LOSS OF $8.5 MIL.

Poniard Pharmaceuticals, Inc. (Nasdaq: PARD), a biopharmaceutical company focused on oncology, has reported on its corporate progress and financial results for the quarter ended June 30, 2007.

"Poniard achieved significant milestones during the last quarter, including the initiation of our pivotal Phase 3 SPEAR trial of picoplatin in small cell lung cancer, presentation at ASCO of results from our Phase 2 trial in small cell lung cancer and our Phase 1 combination trials in first-line colorectal and hormone refractory prostate cancers, and completion of a $75 million financing," said Jerry McMahon, Ph.D., chairman and CEO of Poniard. "We continue to advance our picoplatin clinical development programs and recently began enrollment in our Phase 2 trial in metastatic hormone-refractory prostate cancer. We expect to start the Phase 2 component of our trial in metastatic colorectal cancer later this year."

Second Quarter and Recent Highlights

Picoplatin and Development Pipeline -- Initiated the pivotal Phase 3 SPEAR (Study of Picoplatin Efficacy After Relapse) trial of picoplatin for the second-line treatment of small cell lung cancer (SCLC) under the Special Protocol Assessment (SPA) agreement previously reached with the U.S. Food and Drug Administration. -- Presented new picoplatin clinical results at the 2007 American Society of Clinical Oncology (ASCO) Annual Meeting that confirmed and extended the previously announced interim data analysis from the company's Phase 2 clinical trial, which demonstrated a survival benefit in patients with recurrent SCLC. -- Announced promising results from interim safety analyses of two Phase 1 dose-escalating trials of picoplatin for the potential first-line treatment of metastatic colorectal cancer (CRC) and metastatic hormone-refractory prostate cancer (HRPC). The abstracts were published in the 2007 ASCO Annual Meeting Proceedings. -- Initiated a Phase 2 clinical trial of intravenous picoplatin in metastatic HRPC. This multi-center, open-label, single-arm trial of approximately 30 patients is designed to generate proof-of-concept data demonstrating that picoplatin has improved efficacy when combined with docetaxel and prednisone compared to that seen with docetaxel and prednisone alone. -- Initiated a Phase 1 clinical trial of oral picoplatin in solid tumors.

Financing -- Completed a public offering of 11,848,341 shares of the company's common stock at a purchase price of $6.33 per share, raising net proceeds of approximately $70 million.

Management/Board Appointments -- Appointed Ronald A. Martell as president and chief operating officer of the company and Robert S. Basso to the company's board of directors.

Second Quarter 2007 Unaudited Financial Results

The company reported a net loss of $8.5 million ($0.28 diluted loss per share on a loss applicable to common shares of $8.7 million) for the second quarter of 2007, compared to a net loss of $6.5 million ($0.37 diluted loss per share on a loss applicable to common shares of $6.6 million) for the same period in 2006. The company reported a net loss of $16.3 million ($0.62 diluted loss per share on a loss applicable to common shares of $16.5 million) for the six months ended June 30, 2007, compared to a net loss of $12.3 million ($1.06 diluted loss per share on a loss applicable to common shares of $12.5 million) for the six months ended June 30, 2006. There was no revenue for the three and six months ended June 30, 2007 and 2006.

Total operating expenses for the second quarter of 2007 increased 76 percent to $9.2 million, from $5.2 million for the second quarter of 2006 and increased 86 percent to $17.1 million for the six months ended June 30, 2007, from $9.2 million for the same period in 2006.

Research and development (R&D) expenses increased 79 percent to $5.8 million for the second quarter of 2007, from $3.2 million for the second quarter of 2006 and increased 96 percent to $11.3 million for the six months ended June 30, 2007, from $5.8 million for the same period in 2006. The increase in R&D expenses for both the quarter and six months ended June 30, 2007, resulted primarily from increased clinical costs associated with our Phase 3 small cell lung cancer picoplatin trial, our Phase 1 oral formulation picoplatin trial and from increased costs of picoplatin active ingredient and finished drug product in support of all of our clinical programs.

General and administrative (G&A) expenses increased 69 percent to $3.4 million for the second quarter of 2007, compared with $2.0 million for the second quarter of 2006, and increased 64 percent to $5.8 million for the six months ended June 30, 2007, from $3.5 million for the same period in 2006. The increase in G&A costs for the quarter and six months ended June 30, 2007, was due primarily to increased stock-based compensation expense, increased personnel costs and increased G&A portion of shared facilities expense.

Cash and investment securities as of June 30, 2007, were $103.2 million, compared with $53.7 million at June 30, 2006. Management believes that existing cash and investment securities will provide adequate resources to fund the company's operations at least through the second quarter of 2009.

About Poniard Pharmaceuticals

Poniard Pharmaceuticals, Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of innovative oncology products to impact the lives of people with cancer. Picoplatin, the company's lead product candidate, is a new generation platinum therapy with an improved safety profile. Picoplatin is designed to overcome and prevent platinum resistance associated with chemotherapy in solid tumors. Intravenous picoplatin is currently being studied in clinical trials for the treatment of small cell lung, colorectal and hormone-refractory prostate cancer, and oral picoplatin is in a clinical trial in solid tumors. As part of the company's strategic goal of building a diverse oncology pipeline, the company is collaborating with The Scripps Research Institute on the discovery of novel, small-molecule, multi-targeted protein kinase inhibitors.

For more information, visit http://www.poniard.com or call 206/286-2517.