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Vion Pharmaceuticals Pays Interest on 7.75% Convertible Senior Notes
Date:8/19/2007

NEW HAVEN, Conn., Aug. 15 /PRNewswire-FirstCall/ -- VION PHARMACEUTICALS, INC. (Nasdaq: VION) today announced that the Company had paid interest due August 15, 2007 on its 7.75% Convertible Senior Notes due 2012 (the "Notes"). The aggregate principal amount of the Notes is $60 million.

The Company paid $2,260,416.67 in interest through the issuance of shares of its registered Common Stock. Approximately $2,259,888 was paid in 2,539,200 shares of Common Stock, based on today's closing bid price of $0.89, which is approximately equal to 42.32 of shares of Common Stock per each $1,000 principal amount of Notes. Cash interest was paid in lieu of fractional shares.

Vion Pharmaceuticals, Inc. is committed to extending the lives and improving the quality of life of cancer patients worldwide by developing and commercializing innovative cancer therapeutics. Vion has two agents in clinical trials. Cloretazine(R) (VNP40101M), a unique alkylating agent, is being evaluated in a Phase II pivotal trial as a single agent in elderly patients with previously untreated de novo poor-risk acute myelogenous leukemia. A Phase II trial of Cloretazine(R) (VNP40101M) in small cell lung cancer is also being conducted. Triapine(R), a potent inhibitor of a key step in DNA synthesis, is being evaluated in clinical trials sponsored by the National Cancer Institute. In preclinical studies, Vion is also evaluating VNP40541, a hypoxia-selective compound, and hydrazone compounds. The Company also is seeking development partners for TAPET(R), its modified Salmonella vector used to deliver anticancer agents directly to tumors. For additional information on Vion and its product development programs, visit the Company's Internet web site at '/>"/>

SOURCE Vion Pharmaceuticals, Inc.

Copyright©2007 PR Newswire.

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