Enzon Eliminates its Remaining 2008 Debt

BRIDGEWATER, N.J., July 2, 2008 -- Enzon Pharmaceuticals, Inc. (Nasdaq: ENZN) announced today it has successfully eliminated all of its remaining 2008 debt. 

In December 2005 Enzon had approximately $400 million in outstanding 4.5% Convertible Subordinated Notes due July 2008.  Since that time the Company has been able to improve its balance sheet through a combination of refinancing and repurchasing all of its 2008 debt.  In 2006, the Company refinanced $275 million of the notes by issuing new Senior Convertible Notes due in 2013. This was instrumental in placing Enzon in a solid position to invest in its product pipeline.  In 2007, the Company successfully monetized 25% of its future royalties of PEG-INTRON for cash proceeds of $92.5 million, and used the net proceeds to repurchase and repay the Company’s 2008 Notes.  On July 1, 2008, Enzon paid down the remaining $12.5 million of its outstanding 2008 Notes. 

“Today’s announcement is a result of a very strategic effort which enabled the Company to successfully eliminate our significant debt due this year,” said Jeffrey H. Buchalter, chairman and chief executive officer of Enzon. “This strategic financing effort has placed Enzon in a good position for evaluating its future product and pipeline opportunities.”
 

About Enzon

Enzon Pharmaceuticals, Inc. is a biopharmaceutical company dedicated to the development, manufacturing, commercialization of important medicines for patients with cancer and other life-threatening conditions. Enzon has a portfolio of four marketed products, Oncaspar®, DepoCyt®, Abelcet® and Adagen®. The Company's drug development programs utilize several cutting-edge approaches, including its industry-leading PEGylation technology platform used to create product candidates with benefits such as reduced dosing frequency and less toxicity. Enzon's PEGylation technology was used to develop two of its products, Oncaspar and Adagen, and has created a royalty revenue stream from licensing partnerships for other products developed using the technology. Enzon also engages in contract manufacturing for several pharmaceutical companies to broaden the Company's revenue base. Further information about Enzon and this press release can be found on the Company's web site at www.enzon.com.

Forward Looking Statements

There are forward-looking statements contained herein, which can be identified by the use of forward-looking terminology such as the words "believes," "expects," "may," "will," "should,” "potential," "anticipates," "plans" or "intends" and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from the future results, events or developments indicated in such forward-looking statements. Such factors include, but are not limited to the timing, success and cost of clinical studies; the ability to obtain regulatory approval of products, market acceptance of, and continuing demand for, Enzon’s products and the impact of competitive products and pricing. A more detailed discussion of these and other factors that could affect results is contained in our filings with the U.S. Securities and Exchange Commission, including our annual report on Form 10-K for the period ended December 31, 2007. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. No assurance can be given that the future results covered by the forward-looking statements will be achieved. All information in this press release is as of the date of this press release and Enzon does not intend to update this information.

SOURCE: Enzon Pharmaceuticals, Inc.

Enzon Pharmaceuticals, Inc.
Craig Tooman
EVP, Finance and Chief Financial Officer
908-541-8777