Alteon Announces Financial Results for the Third Quarter Ended September 30, 2004

Alteon Announces Financial Results for the Third Quarter Ended
September 30, 2004 


PARSIPPANY, N.J., Nov. 9  /PRNewswire-FirstCall/ -- Alteon Inc. (AMEX:ALT)
announced today a net loss of $3,010,095 for the three months ended September
30, 2004.  This compared to a net loss of $1,707,265 for the same period in
2003, which included a non-cash variable stock compensation benefit of
$(1,539,537).  The net loss applicable to common stockholders, which included a
non-cash preferred stock dividend, was $4,060,015 or $0.08 per basic/diluted
share for the three months ended September 30, 2004, as compared to $2,672,269
or $0.07 per basic/diluted share for the same period in 2003.

Research and development expenses for the three months ended September 30, 2004
were relatively flat as compared to the three months ended September 30, 2003. 
Although there was no significant increase in 2004, the expenses included
higher clinical costs associated with SPECTRA and PEDESTAL, offset by lower
manufacturing costs.  General and administrative expenses were $933,414 for the
three months ended September 30, 2004 as compared to $(422,294) for the same
period in 2003, primarily related to the non-cash variable stock compensation
benefit of $(1,475,917) for the three months ended September 30, 2003.  Based
upon the price of our common stock at September 30, 2004, there was no non-cash
variable stock compensation expense/(benefit) incurred for the period.

For the nine months ended September 30, 2004, Alteon had a net loss of
$10,246,889.  This compared to a net loss of $11,991,796 for the same period in
2003.  The net loss applicable to common stockholders, which included a
non-cash preferred stock dividend, was $13,309,620 or $0.31 per basic/diluted
share for the nine months ended September 30, 2004, as compared to $14,796,964
or $0.42 per basic/diluted share for the same period in 2003.

Research and development expenses for the nine months ended September 30, 2004
decreased by $1,068,544 or 12.8%, as compared to the nine months ended
September 30, 2003.  The decrease was primarily attributed to lower personnel
and personnel-related expenses in the nine months ended September 30, 2004 as
compared to the same period in 2003, offset by higher clinical trial and
manufacturing costs.  General and administrative expenses decreased by $542,448
or 14.3%, which related to lower business development and marketing costs as
well as lower facility costs for the nine months ended September 30, 2004 as
compared to September 30, 2003, which included the termination of our lease in
Ramsey, New Jersey.

Cash and cash equivalents at September 30, 2004 totaled $14,124,668.

On July 2, 2004, pursuant to a Stock Purchase Agreement, the Company sold
8,000,000 shares of common stock to a number of new and existing institutional
investors at $1.00 per share for net proceeds after fees and expenses of
$7,581,318.

A Special Meeting of the Stockholders was held on September 15, 2004.  The
stockholders voted to amend the Company's Restated Certificate of Incorporation
to increase the number of authorized shares of Common Stock from 100,000,000 to
175,000,000.

About Alteon

Alteon is developing several new classes of drugs that have shown the potential
to reverse or slow down diseases of ageing and complications of diabetes. 
These compounds have an impact on a fundamental pathological process caused by
the progressive formation of protein-glucose complexes called Advanced
Glycation End-products (A.G.E.s).  The formation and crosslinking of A.G.E.s
lead to a loss of flexibility and function in body tissues and organs and have
been shown to be a causative factor in many age-related diseases and diabetic
complications.  Alteon has created a library of novel classes of compounds
targeting the A.G.E. Pathway.

Alteon's lead compound alagebrium chloride (formerly ALT-711), the only A.G.E.
Crosslink Breaker in advanced human testing, has demonstrated safety and
efficacy in several Phase 2 trials and is actively being developed for systolic
hypertension and heart failure.  Over 1200 patients have been involved in
alagebrium's human clinical trials to date, of whom approximately 900 have
received active compound.  Ongoing clinical trials include the phase 2b
systolic hypertension trial, SPECTRA (Systolic Pressure Efficacy and Safety
Trial of Alagebrium), and the phase 2a heart failure trial, PEDESTAL (Patients
with Impaired Ejection Fraction and Diastolic Dysfunction: Efficacy and Safety
Trial of ALagebrium), as well as a third trial exploring mechanism of action in
endothelial dysfunction.  For more detailed scientific information about
alagebrium, please visit the scientific publications section of the Alteon
website, http://www.alteon.com/.

Any statements contained in this press release that relate to future plans,
events or performance are forward-looking statements that involve risks and
uncertainties including, but not limited to, those relating to technology and
product development (including the possibility that early clinical trial
results may not be predictive of results that will be obtained in large-scale
testing or that any clinical trials will not demonstrate sufficient safety and
efficacy to obtain requisite approvals or will not result in marketable
products), regulatory approval processes, intellectual property rights and
litigation, competitive products, ability to obtain financing, and other risks
identified in Alteon's filings with the Securities and Exchange Commission. The
information contained in this press release is accurate as of the date
indicated.  Actual results, events or performance may differ materially. Alteon
undertakes no obligation to publicly release the result of any revision to
these forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

                               Alteon Inc.
                         Statements of Operations
                               (Unaudited)

                              Three Months Ended         Nine Months Ended
                                 September 30,              September 30,
                               2004          2003         2004         2003
  Income:
   Investment Income        $55,198       $35,623     $121,614     $139,521
   Other Income                                --      151,822           --
  Total Income              $55,198       $35,623     $273,436     $139,521

  Expenses:
   Research and Devel-
   opment (which includes
   non-cash variable stock
   compensation expense/
   (benefit) of $0 and
   $(63,620), for the
   three months ended
   September 30, 2004 and
   2003, respectively,
   and $0 and $20,019,
   for the nine months
   ended September 30,
   2004 and 2003,
   respectively)          2,131,879     2,165,182    7,261,576    8,330,120

  General and Adminis-
   trative
  (which includes non-
   cash variable stock
   compensation expense/
   (benefit) of $0 and
   $(1,475,917), for the
   three months ended
   September 30, 2004
   and 2003,
   respectively,            933,414      (422,294)   3,258,749    3,801,197
  Total Expenses         $3,065,293    $1,742,888  $10,520,325  $12,131,317

  Net Loss              $(3,010,095)  $(1,707,265)$(10,246,889)$(11,991,796)

  Preferred Stock Divi-
   dends                  1,049,920       965,004    3,062,731    2,805,168

  Net Loss Applicable
   to Common Stock-
   holders              $(4,060,015)  $(2,672,269)$(13,309,620)$(14,796,964)

  Basic/Diluted Net
   Loss Per Share
   Applicable to
   Common
   Stockholders              $(0.08)       $(0.07)      $(0.31)      $(0.42)

  Weighted Average
   Common Shares Used in
   Computing Basic/
   Diluted Net Loss Per
   Share                 48,298,985    35,961,899   43,100,121   35,173,908


                       Selected Balance Sheet Data
                               (Unaudited)

                                         September 30,        December 31,
                                             2004                2003

  Cash and Cash Equivalents               $14,124,668         $16,678,582

  Total Assets                             14,933,122          17,254,985

  Accumulated Deficit                    (200,928,479)       (187,618,859)

  Total Stockholders' Equity               12,739,084          15,384,432


DATASOURCE: Alteon Inc.



CONTACT:  Susan M. Pietropaolo, Director, Corporate Communications &

Investor Relations of Alteon Inc., Direct - [phone],

 



Web site:  http://www.alteonpharma.com/ 

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