Alteon Raises Up to $12.8 Million in Sale of Common Stock

Alteon Raises Up to $12.8 Million in Sale of Common Stock
- Initial Closing to Raise $8 Million - 


PARSIPPANY, N.J., June 28  /PRNewswire-FirstCall/ -- Alteon Inc. (AMEX:ALT)
announced today that it has entered into agreements with new and existing
institutional investors to sell 8 million shares of common stock at $1.00 per
share, for net proceeds after expenses and fees of approximately $7.6 million. 
The agreements are subject to customary closing conditions. The Company also
agreed to sell to these investors a second tranche of 3.2 million additional
shares of the Company's common stock at a purchase price of $1.50 per share, by
a date no later than December 31, 2004, if the investors so elect.  The shares
are offered through a prospectus supplement pursuant to the Company's effective
shelf registration statement previously filed with the Securities and Exchange
Commission.  Rodman & Renshaw, LLC served as placement agent in this
transaction.

Proceeds from the financing are expected to be used primarily to fund the
Company's ongoing Phase 2 systolic hypertension and heart failure clinical
development programs of alagebrium chloride (ALT-711), Alteon's lead A.G.E.
Crosslink Breaker.

About Alteon

Alteon is developing several new classes of drugs that reverse or slow down
diseases of aging and complications of diabetes.  These compounds have an
impact on a fundamental pathological process caused by 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, organs and vessels 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. Ongoing clinical trials include SPECTRA
(Systolic Pressure Efficacy and Safety Trial of Alagebrium) and PEDESTAL
(Patients with Impaired Ejection Fraction and Diastolic Dysfunction: Efficacy
and Safety Trial of Alagebrium).  For more information on Alteon, visit the
company's website at 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. 

DATASOURCE: Alteon Inc.



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

Investor Relations of Alteon Inc., [phone] 



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

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