Establishing strategic alliances to access complementary scientific, clinical and business expertise and capabilities is a key element of OXiGENE's strategy.

OUR STRATEGIC COLLABORATION PARTNERS

On 15 October 2009, OXiGENE entered into a merger agreement in which OXiGENE will acquire VaxGen in exchange for common stock of OXiGENE. The transaction, which is subject to a shareholder vote, is expected to be completed in the first quarter of 2010. Upon closing of the transaction, VaxGen will become a wholly-owned subsidiary of OXiGENE, VaxGen stockholders will become stockholders of OXiGENE, and two members of VaxGen's current board of directors will be appointed to OXiGENE's board of directors: Lori F. Rafield, Ph.D., a consultant to the biotechnology industry, and Franklin M. Berger, a former biotechnology analyst.