• 08/28/02
Dendreon To Outsource California Cell Processing Operations to Progenitor Cell Therapy

Julie Rathbun
Investor Relations/Communications
Dendreon Corporation
(206) 829-1500
pr@dendreon.com

George Goldberger
Chief Financial Officer
Progenitor Cell Therapy, L.L.C.
(201) 291-2680
ggoldberger@progenitorcell.net

Seattle, WA and Hackensack, N.J. (August 28, 2002)- Dendreon Corporation (NASDAQ:DNDN) and Progenitor Cell Therapy, L.L.C. (Progenitor) today announced that Dendreon will outsource its California cell processing operations to Progenitor.

"We are making considerable progress at Dendreon, having recently announced promising Phase III data for ProvengeTM,” said Mitchell H. Gold, M.D., Dendreon's chief business officer. “Progenitor has provided us with high quality cell processing through their Hackensack, New Jersey facility, and we are confident they will continue to do so through this expanded relationship, which enables us to have the cell processing capacity we need going forward.”

Under the terms of the agreement, Progenitor will pay a fee to Dendreon and assume operational, lease and personnel obligations for Dendreon"s cell processing facility in Mountain View, California. Progenitor will provide cell-processing services at the facility for Dendreon as requested. Dendreon estimates that over four years the arrangement will save $10 million.

“We are very enthusiastic about the recent positive data for Provenge and are pleased to have the opportunity to continue our work with Dendreon as they bring Provenge and their other product candidates closer to market,” said Andrew L. Pecora, M.D., chairman and chief executive officer of Progenitor Cell Therapy.

“The highly qualified cell therapy manufacturing specialists at Mountain View who are joining Progenitor will significantly enhance our ability to serve the needs of the emerging field of cell therapy,” said Dr. Robert A. Preti, president and chief scientific officer of Progenitor.

“This decision was made after a thorough analysis of our experiences to date in operating a Dendreon-owned facility versus contracting for services,” said Martin Simonetti, chief financial officer at Dendreon. “It makes sense both financially by lowering our cost of goods and strategically in the long-term commercialization of our products.”

About Dendreon
Dendreon Corporation is a biotechnology company developing targeted therapies for cancer. Dendreon currently has three therapeutic vaccines in clinical trials -- Provenge, for the treatment of prostate cancer; Mylovenge ™, for the treatment of multiple myeloma; and APC 8024, for the treatment of breast, ovarian and colon cancers. Dendreon’s product pipeline also includes monoclonal antibodies and a pathway to small molecules. Dendreon has established important alliances with industry leaders Genentech, Johnson & Johnson Pharmaceutical Research & Development and Kirin Brewery Co., Ltd. For more information, visit www.dendreon.com.

About Progenitor Cell Therapy, L.L.C.
Progenitor Cell Therapy is a commercial cell engineering company that provides for the collection, manufacture, storage and redistribution of human cells for therapeutic purposes through a nationwide network, operated in compliance with current Good Manufacturing Practices. For more information, visit www.progenitorcelltherapy.com.

Dendreon’s Safe Harbor Statement
Except for historical information contained herein, this news release contains forward looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from the results discussed in the forward-looking statements, particularly those risks and uncertainties relating to our dependence on the efforts of third parties, including Progenitor Cell Therapy, and risks and uncertainties inherent in the process of discovering, developing and commercializing drugs that are safe and effective for use as human therapeutics. Factors that may cause such a difference include risks related to Dendreon’s limited operating history, risks associated with completing Dendreon's clinical trials, including the resumption of enrollment in Dendreon’s ongoing Phase III Provenge clinical trial, the risk that the safety and/or efficacy results of a clinical trial will not support an application for a biologics license, the risk that the FDA will not be satisfied with the data we provide for Provenge or approve a product for which a biologics license has been applied, the uncertainty of Dendreon's future access to capital, the failure by Dendreon to secure and maintain relationships with collaborators, and dependence on intellectual property. Further information on the factors and risks that could affect Dendreon’s business, financial condition and results of operations, are contained in Dendreon's public disclosure filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov.