Results highlight the potential of Alpharadin to treat bone
metastases in major cancer indications

Oslo, Norway, 14 January 2009 - Algeta ASA (OSE: ALGETA), the cancer
therapeutics company, announces that with the results of the BC1-04
study reported today it has completed its comprehensive phase II
clinical program evaluating Alpharadin (radium-223) as a new
treatment for bone metastases in patients with hormone-refractory
prostate cancer (HRPC). The program provides strong evidence that
Alpharadin can prolong patient survival times, improve quality of
life and offers a placebo-like safety profile.


These exciting  clinical results  combined with  Alpharadin's  unique
bone-targeting properties highlight the potential of this new  cancer
therapeutic to be a first-choice  treatment for bone metastases  that
frequently arise from a number of  high incidence cancers as well  as
HRPC (e.g. breast, lung and  thyroid). Bone metastases are a  serious
consequence of  certain  advanced  cancers  causing  intractable  and
debilitating pain as well as further reducing life expectancy.

In addition, the results, including data from the final trial in  the
program (BC1-04;  outlined below)),  suggest that  Alpharadin has  an
ideal profile to be used in combination with other cancer therapies.

The Alpharadin phase II program  comprised three trials and  involved
286 individuals. It was designed  to provide detailed information  on
the safety and therapeutic efficacy of different doses of  Alpharadin
in  HRPC  patients,  both  symptomatic  and  asymptomatic  for   bone
metastases, as well as evaluating its ability to relieve pain  caused
by bone metastases  in symptomatic  patients. In all  three phase  II
trials completed,  the  primary  efficacy endpoints  were  met  while
providing compelling  evidence  of the  benign,  placebo-like  safety
profile of  Alpharadin.  In  addition, data  from  the  BC1-04  study
supports an optimal therapeutic dose  level of 50 kBq/kg as  selected
for use in the global phase III ALSYMPCA trial (see below for further
details).

Furthermore, the successful completion of  the phase II program  also
supports Algeta's strategy for targeting Alpharadin at patients  with
metastatic HRPC  who  are unsuitable  or  who have  failed  docetaxel
chemotherapy and for first-line use in combination with docetaxel.  A
combination study is in preparation, which if successful will  enable
Algeta to  market Alpharadin,  either alone  or in  combination  with
docetaxel, to approximately 85% of the global HRPC market.

Algeta's President and CEO, Dr. Thomas Ramdahl, said: "The completion
of the phase  II program is  an important milestone  for Algeta  that
gives us great confidence  in the potential of  Alpharadin as a  new,
safe and  effective treatment  for  metastatic prostate  cancer.  The
program has demonstrated not only that Alpharadin can improve patient
quality of life by successfully treating the painful and debilitating
bone metastases arising from the primary cancer, but also that it has
a proven survival  benefit for patients.  We believe there  is not  a
single cancer  therapeutic available  today offering  these  patients
such clinical benefits, let alone one which is so readily  tolerated.
We remain confident that the phase III clinical program will  confirm
these impressive results  and support  a strong  case for  regulatory
approval in due course."

Dr Chris Parker, a prostate cancer specialist based at the  Institute
of Cancer Research and the Royal Marsden Hospital in Sutton, UK,  and
the study's  principal  investigator,  said:  "The  clinical  results
generated so  far  for  Alpharadin in  treating  metastatic  prostate
cancer are highly encouraging and  offer patients the possibility  of
an effective treatment that both prolongs life while also maintaining
quality of life.  In addition,  the results  announced today  further
emphasize the  remarkably  favourable safety  profile  of  Alpharadin
compared to other products used in the treatment of HRPC. This  major
benefit of  Alpharadin makes  the  ALSYMPCA phase  III trial  a  very
attractive option  for  suitable patients  as  they can  continue  to
receive best standard care in addition to the study drug."

Results of phase II clinical study BC1-04

The  BC1-04  study  was  a  double-blind,  randomized,  dose-finding,
repeat-dose study comparing three different dose levels of Alpharadin
given three  times with  six  weeks interval  to HRPC  patients  with
skeletal  metastases.   The  drug   was  given   by  i.v.   injection
predominantly on an outpatient basis. The primary study objective was
to investigate whether  there was a  dose-response relationship  with
respect to the proportion of patients showing a PSA response, and  to
investigate the six weeks'  dosing schedule in  order to prepare  for
possible combination trials with docetaxel.

The  primary  efficacy   objective  was   met  and   this  showed   a
dose-dependent effect across  the three  dose levels;  25 kBq/kg,  50
kBq/kg and 80  kBq/kg, respectively.  The  secondary, but  important,
endpoint of bone-specific alkaline phosphatase (b-ALP) also showed  a
significant dose-dependent  effect between  the  lowest and  the  two
higher dose  levels,  as well  as  confirming once  more  the  strong
bone-targeting nature of  Alpharadin.  ALP  is a  severity marker  of
metastatic bone  disease and  of  prognostic importance.  Again,  the
benign safety profile of Alpharadin was confirmed. Importantly for  a
drug in this clinical setting no significant bone marrow toxicity was
observed in  patients receiving  Alpharadin, which  suggests that  in
addition to  being  a  product  of  choice  for  patients  with  bone
metastases  it  may  also  have  an  ideal  profile  to  be  used  in
combination with other therapies.

Algeta began enrolling  patients for  the global  phase III  ALSYMPCA
(ALpharadin in  SYMptomatic  Prostate  CAncer) study  in  June  2008.
Approximately 750 patients  are expected  to be  enrolled in  Europe,
Asia, South America and Canada.

For  more  information   on  the   ALSYMPCA  trial,   please  go   to
www.algeta.com and click on the ALSYPMCA link in the menu bar.

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For further information, please contact


Dr. Thomas Ramdahl, President  +47 23 00 79 90 / +47 913 91 458 (mob)
& CEO                          +47 23 00 79 84 / +47 906 56 525 (mob)
Øystein Soug, CFO              post@algeta.com

For international enquiries:   +44 (0)207 638 9571
Dr. Mark Swallow / David Dible mark.swallow@citigatedr.co.uk
/ Helena Galilee
Citigate Dewe Rogerson



About Algeta
Algeta ASA  is  a  Norwegian cancer  therapeutics  company  built  on
world-leading, proprietary  technology.  Algeta  is  developing  new,
targeted cancer therapeutics that harness the unique  characteristics
of  alpha  particle  emitters  and  are  potent,  well-tolerated  and
convenient to use.

Algeta's lead product  candidate, Alpharadin  (based on  radium-223),
has blockbuster potential for  treating bone metastases arising  from
multiple major  cancer types,  owing  to its  bone-targeting  nature,
potent efficacy (therapeutic and palliative) and benign, placebo-like
safety profile. Development of Alpharadin is most advanced  targeting
bone metastases  resulting  from hormone-refractory  prostate  cancer
(HRPC), and  it entered  an international  phase III  clinical  trial
(ALSYMPCA) in mid-2008  based on compelling  clinical results from  a
comprehensive phase II program.

Algeta's strategy is to launch Alpharadin  as a first or second  line
treatment for cancer patients with bone metastases either alone or in
combination  with  current  standard   of  care  therapies,   thereby
maximizing its commercial potential.

Algeta is  also developing  other technologies  for delivering  alpha
emitters. These  include microparticles,  liposomes, and  methods  to
enhance   the   potency   of   therapeutic   antibodies   and   other
tumor-targeting molecules  by  linking  them to  the  alpha  particle
emitter thorium-227. The  Company is headquartered  in Oslo,  Norway,
and was founded in 1997. Algeta listed on the Oslo Stock Exchange  in
March 2007 (Ticker: ALGETA).

Alpharadin and Algeta are trademarks of Algeta ASA.

About Bone Metastases

Bone is the most common organ to be affected by metastatic cancer
(Ref. 1). Approximately 1.5 million cancer patients suffer from bone
metastases worldwide and there are some 300,000 new cases each year.
Importantly, metastases may stay confined to the skeleton with
subsequent morbidity and eventual death almost entirely due to
skeletal complications and their treatment.

Some 80% of bone metastases are due to prostate and breast
carcinomas. For these high incidence cancers, 65-75% patients with
advanced disease will have bone metastases (Ref. 2). They may suffer
multiple skeletal complications over several years because the
clinical course of metastatic bone disease is relatively long. The
effects are often debilitating (intractable bone pain, fractures,
hypercalcaemia, and spinal cord compression) and profoundly impair a
patient's quality of life.

Bone metastases also occur frequently in patients with lung, kidney
and thyroid cancers - respectively in 30-40%, 20-25% and 60% of
patients with advanced disease.

Current treatments for skeletal metastases are largely palliative.
They include opioid analgesics, external beam radiotherapy,
beta-emitting radionuclides and bisphosphonates.



References
1. Coleman, R.E. Clinical features of metastatic bone disease and
risk of skeletal morbidity. Clin Cancer Res. 2006;12:6243s-6249s.
Review
2. Rubens, R.D, and Coleman, R.E. Bone Metastases. In: Abaloff, M.D.,
Armitage, J.O., Lichter, A.S. and Niederhuber, J.E. Clinical Oncology
1995: 643-665

Forward-looking Statement
This news release contains  forward-looking statements and  forecasts
based on  uncertainty, since  they  relate to  events and  depend  on
circumstances that  will occur  in  the future  and which,  by  their
nature, will  have  an  impact  on  results  of  operations  and  the
financial condition of  Algeta. There  are a number  of factors  that
could cause actual results and developments to differ materially from
those expressed  or  implied  by  these  forward-looking  statements.
Theses factors  include, among  other things,  risks associated  with
technological development, the risk that research & development  will
not yield new products that achieve commercial success, the impact of
competition, the  ability to  close  viable and  profitable  business
deals, the  risk  of non-approval  of  patents not  yet  granted  and
difficulties of  obtaining relevant  governmental approvals  for  new
products.


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