For Immediate Release

PHARMION COMPLETES $40 MILLION PRIVATE PLACEMENT

October 16, 2002

BOULDER, CO - Pharmion Corporation announced that it completed a $40 million private equity placement from a syndicate of new and existing investors. Investors in this round include New Enterprise Associates, General Electric Pension Trust, ProQuest Investments, Nomura International PLC, Bay City Capital and Versant Ventures as well as members of Pharmion management and certain other investors from Pharmion's first two rounds of financing. Pharmion has raised $130 million since it was initially funded in January 2000 and currently has approximately $75 million in cash.

Pharmion is a global cancer care company that acquires and commercializes innovative pharmaceutical products for the treatment of hematology and oncology patients. Pharmion has established its own commercial operations in the United States, throughout Europe and in Australia, and through its distributor network can reach the hematology/oncology community in an additional 30 countries in the Middle East and Asia. With its regulatory affairs and development expertise, Pharmion seeks to acquire late-stage development compounds as well as already approved products. As a result, the company is building a balanced portfolio of commercial and pipeline products.

"We are extremely pleased to complete this financing, particularly in light of the current market environment," said Patrick J. Mahaffy, president and chief executive officer of Pharmion. "We've made significant progress in the past 18 months with the acquisition of four promising products that we believe have important potential applications in hematology and oncology. This additional funding will help support the re-launch of our currently approved products and complete the regulatory review and registration of our products in development. It also enables us to continue to pursue and add high impact hematology and oncology products to our portfolio."

With the recent acquisitions of Refludan® [lepirudin (rDNA) injection] and Innohep® (tinzaparin sodium injection) and agreements signed last year for THALOMID® (thalidomide) and azacitidine, Pharmion now owns distribution and marketing rights to four products with promising applications for the treatment of serious diseases and conditions impacting cancer patients.

In June 2001, Pharmion acquired global development and commercialization rights to its first product, azacitidine, from Pharmacia Corporation. Azacitidine has been studied in the treatment of myelodysplastic syndromes (MDS) or bone marrow disorders characterized by the production of abnormally functioning blood cells. There currently are no approved therapies for MDS. Pharmion plans to file a New Drug Application (NDA) in the United States for azacitidine in 2003 and is planning regulatory submissions in Europe and other international markets as well.

In November 2001, Pharmion added a second product to its portfolio by acquiring the marketing and development rights to THALOMID® (thalidomide) in Europe and Australia from Celgene Corporation. Pharmion filed for regulatory approval for thalidomide in the treatment of relapsing or refractory multiple myeloma and acute treatment of the cutaneous manifestations of moderate to severe erythema nodosum leprosum (ENL) in Europe and Australia earlier this year, and is currently preparing filings for additional international markets.

In June 2002, Pharmion acquired its third product by signing an exclusive agreement with Schering AG for sales and distribution rights to Refludan® [lepirudin (rDNA) injection] in all countries outside the United States and Canada. Refludan is a leading treatment of thrombosis associated with the severe form of heparin-associated thrombocytopenia, an infrequent but potentially life-threatening response to heparin therapy. Refludan was approved for marketing in Europe in 1997 and has since been approved in more than 40 countries worldwide, including the United States.

To support the distribution of Refludan and prepare for the launch of thalidomide, Pharmion has established commercial organizations in Australia, France, Germany, Italy, Spain and the United Kingdom and is planning to establish commercial organizations in several additional European countries next year. In addition, the company has developed a network of distribution partners in more than 30 other countries throughout the world.

The fourth product was added to Pharmion's portfolio in July 2002 with the acquisition of exclusive U.S. marketing rights to Innohep® (tinzaparin sodium injection) from LEO Pharma of Denmark. Innohep® is a once-daily low molecular weight heparin for the treatment of acute symptomatic deep vein thrombosis with or without pulmonary embolism when administered in conjunction with warfarin sodium in hospitalized patients. The product is approved for marketing in the United States as well as 54 other countries throughout the world. Pharmion re-launched Innohep® as its first U.S. commercial product in the United States on October 4, 2002 with its 31-member team of field-based professionals.

About Pharmion

Pharmion is a global cancer care company that acquires and commercializes innovative pharmaceutical products for the treatment of hematology and oncology patients. The company is headquartered in Boulder, Colo.

THALOMID® is a registered trademark of Celgene Corporation. Refludan® is a registered trademark of Aventis, Hoechst Marion Roussel or Schering depending on territory. Innohep® is a registered trademark of LEO Pharma.

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