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Tengion Provides Business Update and Reports Third Quarter 2010 Financial Results
Date:11/1/2010

zen presentations during December 5-8, 2010 at the Tissue Engineering and Regenerative Medicine International Society – North America meeting in Orlando, FL. These presentations will include new data from the Neo-Urinary Conduit and Neo-Kidney Augment programs.

Corporate UpdateIn October 2010, the Company announced the appointment of Richard E. Kuntz, M.D., M.Sc., Senior Vice President and Chief Scientific, Clinical and Regulatory Officer of Medtronic, Inc. to the Company's Board of Directors.

Financial UpdateFor the third quarter ended September 30, 2010, the Company reported an adjusted net loss of $6.7 million or $0.54 per basic and diluted common share, compared with an adjusted net loss of $7.2 million, or $1.14 per basic and diluted common share, for the same period in 2009.  The decreased adjusted net loss for the 2010 period was primarily due to a $0.4 million decrease in interest expense resulting from lower average debt balances during the 2010 period.  The loss per basic and diluted common share for the quarter ended September 30, 2010 was significantly affected by the Company's initial public offering of 6,000,000 shares in April 2010.

Operating expenses during the quarter ended September 30, 2010, decreased to $6.3 million from $6.4 million during the quarter ended September 30, 2009, primarily due to a decrease in compensation and related expenses of $0.4 million, which was offset in part by an increase of $0.3 million in external preclinical study expenses associated with the Neo-Kidney Augment program.

As of September 30, 2010, the Company held $19.0 million in cash, cash equivalents and short-term investments compared with $27.4 million on June 30, 2010.  In October 2010, the Company was awarded Qualifying Therapeutic Discovery Project Grants totaling $1.0 million in connection with the Company's Neo-Urinary Conduit, Neo-Kidney Augment, Neo-GI Augment, and Neo-Bladder Augment development prog
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