Point Therapeutics Reports Second Quarter 2005 Financial Results

Point Therapeutics, Inc. (NASDAQ: POTP) today reported
financial results for the fiscal quarter and six months ended June 30,
2005.
   In the second quarter of 2005, Point reported a net loss of
$5,143,000 or $0.23 per share, compared with a net loss of $3,008,000,
or $0.17 per share, in the second quarter of 2004. For the first six
months of 2005, Point reported a net loss of $10,059,000 or $0.48 per
share compared with a net loss of $6,143,000 or $0.37 per share for
the first six months of 2004.
   During the second quarter of 2005, Point achieved several
important milestones:

   --  Announced positive results in the company's 41 patient Phase 2
        metastatic non-small cell lung cancer (NSCLC) study of
        talabostat in combination with docetaxel. In the first 36
        evaluable patients, five patients demonstrated a significant
        tumor response. Most importantly, two of the patients had a
        complete (100%) tumor response. Based on these results, which
        were presented in May at a poster session at the American
        Society of Clinical Oncology Annual Meeting, the company is
        preparing to begin a Phase 3 trial in NSCLC in the second half
        of 2005.

   --  Announced positive interim results in the company's Phase 2
        metastatic melanoma program. In the 30 patient single-agent
        talabostat trial, two patients out of the first 18 evaluable
        patients had a significant tumor response, with one patient
        experiencing a complete (100%) tumor response. In the 54
        patient combination study of talabostat with cisplatin, 2
        patients out of the first 15 evaluable patients had a partial
        tumor response.

   --  Held the company's first Research and Development Day in New
        York City. Speakers included Dr. Casey Cunningham, an
        investigator in Point's Phase 2 NSCLC study at Mary Crowley
        Medical Research Center in Dallas, TX and Dr. Khuda Dad Khan,
        an investigator in Point's Phase 2 metastatic melanoma trial
        at Indiana Oncology and Hematology Associates. The Web cast
        for this event is archived on the company's Web site,
        www.pther.com, in the Investor Relations section under
        "Presentations."

   --  Initiated a 60 patient Phase 2 clinical trial of talabostat in
        combination with gemcitabine for the treatment of metastatic
        pancreatic cancer.

   "In the second quarter, Point Therapeutics made significant
progress in meeting our key clinical objectives," said Don Kiepert,
President and CEO of Point Therapeutics, Inc. "We achieved the desired
results in our Phase 2 non-small cell lung cancer trial and we intend
to launch a Phase 3 program in the second half of this year. Interim
results in our two melanoma trials were also promising. Most
importantly, we were pleased to see a complete responder in the single
agent trial which provides further support of talabostat's biological
activity. Additionally, we launched our fifth Phase 2 trial of
talabostat in combination with gemcitabine in metastatic pancreatic
cancer. I am very pleased with the progress Point has made to date,
especially in achieving the key clinical milestones of the last
quarter. I feel strongly that these accomplishments position Point
well for the second half of the year."
   Research and development expenses increased to $4,061,000 in the
second quarter of 2005, from $2,205,000 in the second quarter of 2005.
The increase in research and development costs resulted primarily from
increased clinical and related manufacturing costs relating to the
company's five ongoing Phase 2 clinical trials. General and
administrative expenses increased to $1,227,000 in the second quarter
of 2005 from $837,000 in the second quarter of 2004. The increase in
general and administrative expenses resulted primarily from costs for
three new hires and increased patent activity.
   Point's cash and investment balance as of June 30, 2005 was
$24,008,000. On March 4, 2005, Point received $16,425,000 in gross
proceeds relating to the sale of 3,650,000 shares of common stock in a
registered direct placement of securities. Offsetting these proceeds
were costs totaling approximately $1,400,000 relating to the sale and
registration of the shares, resulting in net proceeds from the private
placement of approximately $15,000,000. In addition, Point has
received approximately $3,848,000 in proceeds from the exercise of
warrants and stock options for the first six months of 2005 offset by
cash used in operations and for the purchase of equipment of
approximately $9,158,000. Interest income was $145,000 in the second
quarter of 2005 compared to $34,000 in the second quarter of 2004.

   About Point Therapeutics, Inc.:

   Point is a Boston-based biopharmaceutical company developing a
family of dipeptidyl peptidase (DPP) inhibitors for use in cancer,
type 2 diabetes and as vaccine adjuvants. Its lead product candidate,
talabostat (PT-100), is a small molecule drug in Phase 2 clinical
trials. Talabostat is orally-active and, through a novel mechanism of
action, has the potential to inhibit the growth of malignant tumors
and to support the reconstitution of the hematopoietic system. In
2004, Point initiated four Phase 2 clinical trials of talabostat. The
trials are studying talabostat in combination with docetaxel in
metastatic non-small cell lung cancer, talabostat as a single agent in
metastatic melanoma, talabostat in combination with cisplatin in
metastatic melanoma, and talabostat in combination with rituximab in
advanced chronic lymphocytic leukemia. In June of 2005, Point
announced the initiation of a fifth Phase 2 clinical trial studying
talabostat in combination with gemcitabine in metastatic pancreatic
cancer. In addition, Point's portfolio includes two other DPP
inhibitors in preclinical development--PT-630 for type 2 diabetes, and
PT-510 as a vaccine adjuvant.

   Certain statements contained herein are not strictly historical
and are "forward looking" statements as defined in the Private
Securities Litigation Reform Act of 1995. This information includes
statements on the prospects for our drug development activities and
results of operations based on our current expectations, such as
statements regarding certain milestones with respect to our clinical
program and our product candidates. Forward-looking statements are
statements that are not historical facts, and can be identified by,
among other things, the use of forward-looking language, such as
"believes," "feels," "expects," "may," "will," "should," "seeks,"
"plans," "schedule to," "anticipates" or "intends" or the negative of
those terms, or other variations of those terms of comparable
language, or by discussions of strategy or intentions. A number of
important factors could cause actual results to differ materially from
those projected or suggested in the forward looking statement,
including, but not limited to, the ability of Point to (i)
successfully develop and manufacture products, (ii) obtain external
funding to finance the operations, (iii) obtain the necessary
regulatory approvals, and (iv) obtain and enforce intellectual
property rights, as well as the risk factors described in Point's
Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on May 10, 2005 and from time to time in Point's other
reports filed with the Securities and Exchange Commission.

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                       POINT THERAPEUTICS, INC.
                     (A Development Stage Company)

                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (UNAUDITED)

                       Three months ended          Six months  ended
                            June 30,                    June  30, 
                       2005          2004           2005         2004
                 ----------- -------------  ------------- ------------
REVENUES
 License
  revenue                $-            $-             $-           $- 
 Sponsored
  research
  revenue                 -             -              -            - 
                 ----------- -------------  ------------- ------------
 Total 
  revenues                -             -              -            - 
                 ----------- -------------  ------------- ------------
OPERATING
 EXPENSES
  Research and
   development    4,060,603     2,204,776      7,613,587    4,230,393 
 General and
  administrative  1,227,307       837,152      2,670,939    1,964,833 
                 ----------- -------------  ------------- ------------
 Total 
  operating
  expenses        5,287,910     3,041,928     10,284,526    6,195,226 
                 ----------- -------------  ------------- ------------
Net loss from
 operations      (5,287,910)   (3,041,928)   (10,284,526)  (6,195,226)
                 ----------- -------------  ------------- ------------
Interest 
 income             144,631        33,603        225,902       52,389 
Interest 
 expense                  -             -              -            - 
                 ----------- -------------  ------------- ------------
Net loss        $(5,143,279)  $(3,008,325)  $(10,058,624) $(6,142,837)
                 =========== =============  ============= ============
Basic and
 diluted net
 loss per 
 common
 share               $(0.23)       $(0.17)        $(0.48)      $(0.37)
                ============ =============  ============= ============
Basis and
 diluted
 weighted
 average 
 common
 shares
 outstanding     22,456,565    18,186,742     20,956,429   16,677,824
                ============ =============  ============= ============


                    Period from    
                 September 3, 1996       
                (date of inception)    
               through June 30, 2005     
                  -------------    
REVENUES                           
 License                           
  revenue           $5,115,041     
 Sponsored                         
  research                         
  revenue            2,400,000     
                  -------------    
 Total                             
  revenues           7,515,041     
                  -------------    

OPERATING                          
 EXPENSES                          
  Research and                     
   development      39,836,982     
 General and                       
  administrative    18,713,715     
                  -------------    
 Total                             
  operating                        
  expenses          58,550,697     
                  -------------    
Net loss from                      
 operations        (51,035,656)    
                  -------------    
                                   
Interest                           
 income              1,365,254     
Interest                           
 expense               (82,652)    
                  -------------    
Net loss          $(49,753,054)    
                  =============    
                                   
                

                       POINT THERAPEUTICS, INC.
                     (A Development Stage Company)

                 CONDENSED CONSOLIDATED BALANCE SHEETS
                              (UNAUDITED)
                                               June 30,   December 31,
                                                 2005         2004
                                             ------------ ------------
ASSETS
Cash, cash equivalents and restricted cash   $24,008,455  $13,991,994
Property and equipment, net                      221,459      205,323
Other assets                                     425,280      298,758
                                             ------------ ------------

Total assets                                 $24,655,194  $14,496,075
                                             ============ ============



LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                           $3,597,178   $2,397,814
Other liabilities                                 42,364       47,604
Total stockholders' equity                    21,015,652   12,050,657
                                             ------------ ------------

Total liabilities and stockholders' equity   $24,655,194  $14,496,075
                                             ============ ============
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