UBSUBS GlobalGlobal LifeLife SciencesSciences 20052005 ConferenceConference

JamesJames A.A. Bianco,Bianco, M.D.M.D. PresidentPresident andand CEOCEO

C E L L T H E R A P E U T I C S, I N C. (N A S D A Q : C T I C) ForwardForward LookingLooking StatementStatement This presentation contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements contained in this presentation include statements about future financial and operating results, and risks and uncertainties that could affect CTI’s product and products under development. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. In any forward-looking statement in which CTI expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: risks associated with preclinical, clinical and sales and marketing developments in the biopharmaceutical industry in general and in particular including, without limitation, the potential failure of XYOTAX™ to prove safe and effective for treatment of non-small cell lung and ovarian cancers, the potential failure of pixantrone to prove safe and effective for treatment of non-Hodgkin’s lymphoma, determinations by regulatory, patent and administrative governmental authorities, competitive factors, technological developments, costs of developing, producing and selling CTI’s products under development; and other economic, business, competitive, and/or regulatory factors affecting CTI’s business generally, including those set forth in CTI’s filings with the SEC, including its Annual Report on Form 10-K for its most recent fiscal year and its most recent Quarterly Report on Form 10-Q, especially in the “Factors Affecting Our Operating Results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections, and its Current Reports on Form 8-K. CTI is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events, or otherwise. CTICTI CompanyCompany SnapshotSnapshot

••Focus: less toxic, more effective cancer treatments ••Commercially attractive late stage pipeline - XYOTAX™: Phase III NSC lung (completed), Phase III ovarian - Pixantrone: Phase III - aggressive NHL - CT-2106: Phase II - colorectal and ovarian cancers ••Major near term regulatory milestones - XYOTAX™: NDA/MAA submission targeted 1H06 - Pixantrone: Interim results targeted 1H06 ••Retained U.S. and E.U. product rights - Attractive partnering opportunities CTICTI OncologyOncology PortfolioPortfolio EnhancingEnhancing EachEach MajorMajor ClassClass ofof ChemotherapyChemotherapy AgentAgent

2+ Cl + NH H N + NH Pt 3 R 2 Pt 3 H N Cl 3 NH2 H3N

Effective less toxic Potentially more Potentially more Potentially more Taxane effective effective, less toxic effective Platinum Anthracycline with Camptothecin Agent less cardiac toxicity

XYOTAXXYOTAX™ PixantronePixantrone CTCT--21062106 BisBis--platinumplatinum XYOTAXXYOTAX™™ (paclitaxel(paclitaxel poliglumex)poliglumex)

AA potentiallypotentially safer,safer, moremore effectiveeffective taxanetaxane XYOTAXXYOTAX™™ PaclitaxelPaclitaxel PoliglumexPoliglumex

A subunit of the macromolecular complex

Paclitaxel

Macromolecular poly–Lcomplex–glutamate of XYOTAX backboneTM

Singer et al. In: Adv Exp Med Biol. 2003; 519:81-99 XYOTAXXYOTAX™™ AccumulatesAccumulates inin thethe TumorTumor EnhancedEnhanced PermeabilityPermeability andand RetentionRetention EffectEffect

• Enhanced uptake in tumor tissue due to EPR effect • Decreases systemic toxicity; reduced normal tissue exposure to free drug • Increases half-life in tumor tissue • Release of paclitaxel from polymer may be enhanced in women XYOTAXXYOTAX™™ forfor lunglung cancercancer XYOTAXXYOTAX™ ProlongsProlongs SurvivalSurvival inin WomenWomen 33 FirstFirst--lineline NSCNSC lunglung cancercancer trialstrials

75%

65% 50% increase 48% 125% increase increase

25% % survival at 1 year % survival

0% STELLAR 4 (n=105) STELLAR 3 (n=93) PGT202 (n=74)

Comparator (Female) Comparator (Male) XYOTAX (Female) XYOTAX (Male) XYOTAX (Female) XYOTAXXYOTAX™™ OverallOverall SurvivalSurvival byby GenderGender

PGT202 PGT303 PGT304 Composite Analysis: Overall Survival by Gender N Median 1yr Female 132 8.1 m 39% Male 331 7.2 m 25% HR=1.37 log rank p-value = 0.014

1 year survival 56% increase (39% v. 25%) p-value = 0.04 Female Probability of Survival Probability

Male

Time From Randomization Date (Days) XYOTAXXYOTAX™™ BasisBasis forfor gendergender specificspecific enhancedenhanced effectivenesseffectiveness

••Role of estrogen in lung cancer - Lung cancer cells express functional ER receptors - May explain increased incidence among female non-smokers and a higher risk for female smokers ••Potential role of estrogen on XYOTAX™ effectiveness in women - Estrogen increases activity of Cathepsin B - Cathepsin B metabolizes polyglutamate releasing paclitaxel - Increased estrogen in women may result in greater tumor exposure to chemotherapy due to increased metabolism of PG ••XYOTAX™ increased survival in women compared to men in 3 NSCLC trials ••Effectiveness in men is equivalent to comparator SubgroupSubgroup AnalysesAnalyses GuidelinesGuidelines forfor determiningdetermining ifif apparentapparent differencesdifferences inin subgroupsubgroup responseresponse areare realreal ••Magnitude of the difference ••Statistical significance ••A priori hypothesis ••Small number of hypotheses ••Within-study comparisons ••Consistency across studies ••Indirect evidence

Annals of Internal Medicine, Vol. 116, No. 1, Jan. 1992, pg. 78-84 SummarySummary PhasePhase IIIIII resultsresults FirstFirst--lineline NSCLCNSCLC PS2PS2

••Statistically significant survival advantage in women treated with XYOTAX compared to control arms in composite analysis of STELLAR 3 & 4 - ITT (n=198 patients) - Median survival 9.5 months v. 7.7 months, HR=0.70, log rank p=0.03 - 1 year survival 40% v. 25% (p=0.013) ••Treatment arms were stratified by gender - Statistical plan pre-specified gender specific analyses ••Results confirmed in multivariate (Cox) analysis ••Non-inferior overall survival to comparator agents in both front line studies - 31% v. 31% 1 year survival Vs.pac/carbo (p=0.018)* - 26% v. 26% 1 year survival Vs. gem/vin (p=0.039)*

* Rothmann methodology 50% retention, based on standard error from STELLAR trials SummarySummary PhasePhase IIIIII ResultsResults FirstFirst--lineline NSCLCNSCLC PS2PS2 singlesingle agent*agent*

••Reduction in severe side effects - Anemia (p=0.008) - Neutropenia (p=0.009) - Infection (p=0.003)# - Pneumonia (p=0.017)# ••Significant decrease supportive care needs - G-CSF (p=0.03) or EPO (p=0.01) use - Narcotic use (p=0.03) ••Low incidence of severe neuropathy (4%)

*STELLAR 4 (XYOTAX v. gem/vin) #STELLAR 4 (XYOTAX v. vinorelbine) PatientPatient ConvenienceConvenience (Administration(Administration timetime perper cycle)cycle)

Minutes 250 -No routine pre-meds -No special catheters

200

150

100

50

0 XYOTAX vs. Docetaxel XYOTAX vs. XYOTAX/Carboplatin vs. Gemctibine/Vinorelbine Paclitaxel/Carboplatin XYOTAXXYOTAX™™ RegulatoryRegulatory approvalapproval strategystrategy forfor lunglung cancercancer XYOTAXXYOTAX™™:: RegulatoryRegulatory StrategyStrategy NSCNSC lunglung cancercancer

••US: FDA (NDA) - Gender specific survival: First-line single agent therapy in women with NSCLC who have poor performance status (PS2) - Priority review request at filing - Initiate in parallel a confirmatory gender specific trial 4Q05; interim data available, if needed, subsequent to potential ODAC panel 1Q07 ••EU: EMEA (MAA) - Non-inferior survival: First-line single agent therapy for patients with NSCLC with PS2 XYOTAXXYOTAX™™ EstimatedEstimated regulatoryregulatory timelinestimelines

2006 2007 1st H 2nd H 1st H 2nd H U STELLAR 3 & 4 N I ♦♦ ♦♦ ♦♦ T NDA ODAC Launch E PGT305 D ♦♦ ♦♦ S Interim Final T Results Results A T 505b2 ovarian cancer* E ♦♦ GOG maintenance ovarian cancer trial Results S ♦♦ Interim Results

EU STELLAR 3 & 4 ♦♦ ♦♦ Launch MAA

*Alternative registration strategy; trial under consideration XYOTAXXYOTAX™™ forfor ovarianovarian cancercancer GOGGOG PhasePhase IIIIII OvarianOvarian TrialTrial

••Background for study: Maintenance paclitaxel (3 months v. 12 months)* - Significant increase in PFS (21 vs. 28 months ) p<0.0035 - Study closed: underpowered for overall survival - Maintenance paclitaxel required dose reductions due to toxicity ••GOG phase III XYOTAX™ ovarian trial - Maintenance XYOTAX™ at 135mg/m2 vs. “no maintenance” - Endpoints: superior PFS (accelerated review); OS (full approval) - Paclitaxel comparator arm for side effect comparison and QOL benefits ••First SPA ever for GOG-FDA/CTEP ••Targeted interim data late 2007

*Source: Journal of Clinical Oncology, July 1, 2003 XYOTAXXYOTAX™™ CommercialCommercial opportunityopportunity ChemotherapyChemotherapy AgentsAgents UsedUsed toto TreatTreat NSCLCNSCLC inin thethe U.S.U.S. 70 ~178,000 Patients/year 60

1,000 50 x

40

30 60

42

Patients/Year Patients/Year 20 36

10 13 13 0 Paclitaxel Docetaxel Gemcitabine Vinorelbine Other

Source: Tandem Cancer Audit 2004 NSCLC:NSCLC: PerformancePerformance StatusStatus PS ≥ 2 Patients = 55,617*

100%

80% 44% 63% 60%

40% 56% 20% 37%

0% Chemo-Naïve/Refractory Failed Front-Line Chemo. PS 0,1 PS ≥ 2

Source: V2 Market Research 03/2003 * Tandem 2004 AttributeAttribute RatingsRatings forfor thethe PrescribingPrescribing DecisionDecision

• Oncologists rate quality of life Average Attribute and clinical benefit as the Score most important attributes for Quality of life 9.4 Clinical benefit with a reduction in treatment of PS ≥ 2 patients 9.2 symptoms caused by the tumor Overall median survival 8.8 • Febrile neutropenia is the Incidence of febrile neutropenia 7.7 most significant toxicity Stable disease data 7.5 concern Time to disease progression 7.3 Personal experience 7.2 ORR 6.9 • Disease control is considered Incidence of neuropathy 6.5 a more relevant attribute than Ease of administration 6.1 objective response rate Formulary status 5.9 Reimbursement rate 5.8 Dosing schedule 5.2 Incidence of edema 5.1 Length of infusion time 4.7 Incidence of alopecia 4.1 XYOTAXXYOTAX™ PotentialPotential U.S.U.S. commercialcommercial valuevalue # Patients Treated

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0 Year 1 Year 2 Year 3 Year 4 Year 5

Head and Neck Prostate Breast Ovarian NSCLC CommercializationCommercialization StrategyStrategy

••Leverage resources of multi-national pharmaceutical company - Global launch capability - Allows CTI ability to grow commercial infrastructure with solid tumor expertise ••Co-promotional structure in US - Product sales and cost sharing proportional to contribution - Phase in specialty sales force to 40% US effort ••Royalty structure for ex-US territories ••Potential for successful EU filing - May attract partner prior to filing PixantronePixantrone AnthracyclinesAnthracyclines

• Established “cornerstone” and potentially curative therapy - Breast cancer / acute leukemia / lymphoma • Examples: mitoxantrone, doxorubicin, epirubicin • However all cause cumulative and irreversible damage to heart muscle that may manifest many years later - Limits drugs utility and repeat treatment options Prevents use in combination with Prevents use as repeat therapy* Prevents use in combination with targeted therapies# Dose m/mg2

Herceptin 7% 5% 400

Herceptin + paclitaxel 11% 500 16%

Herceptin + 550 anthracycline 26% 28%

0% 5% 10% 15% 20% 25% 30% 0% 5% 10% 15% 20% 25% 30%

* Incidence of Congestive Heart Failure: Swain et al. # Herceptin® package insert DNADNA IntercalatorsIntercalators ImprovedImproved efficacyefficacy andand safetysafety

••Alter chemical groups responsible for free-radical production and cardiac toxicity

O OH O OH H NH O HN 2 OH N OH O HN OH COOH N O O OH O 2 2 HCl O COOH HO OH O HN OH O HN H N NH H 2 H N 2 Doxorubicin Mitoxantrone Pixantrone

••Target market - Replace current marketed agents as potentially safer, more effective treatment in NHL, leukemia, and breast cancer PixantronePixantrone PhasePhase I/III/II clinicalclinical experienceexperience

••Summary of clinical results to date (n = 270 pts) - High complete remission rates in relapsed/resistant aggressive NHL •• Well tolerated - Low incidence of nausea/vomiting - No requirement for surgical placement of central catheter - Low incidence of cardiac events (<2%) despite >80% patients receiving maximum (≥550mg/m2) prior anthracycline exposure ••Robust development program - PIX301: 3rd-line single agent, aggressive NHL (n = 320 pts) - PIX203: 1st-line R-CHOP v. R-CPOP elderly NHL (n = 280 pts) PhasePhase IIII ExperienceExperience

# of Pts Complete Partial Stable Evaluable/Total response response disease

Single agent1 33/33 15% 12% 9%

BSHAP2 18/21 39% 22% 33%

CPOP3 22/23 59% 18% 18%

1Source: Phase II study; August 2003, Haematologica (Borchmann, vol. 88, No. 8) 2Source: ASCO 2004 poster presentation 3Source: ASH 2003 poster presentation, Borchmann PixantronePixantrone PhasePhase IIIIII trialtrial inin aggressive,aggressive, relapsedrelapsed NHLNHL

••Randomized controlled trial 320 patients - Pixantrone vs. single agent of choice ••Primary endpoint: CR/uCR rate ••Granted fast track status by FDA ••Target interim analysis: 1H06 ••Potential outcomes - Continue trial to 320 patients - Continue trial to < 320 patients - Stop trial, submit NDA PixantronePixantrone CommercialCommercial opportunityopportunity PatientsPatients ReceivingReceiving ChemotherapyChemotherapy

Patients350000

300000 314,351 566,444 Patients

250000

200000

150000 135,119

100000

50000 39,874 31,933 26,324 18,843 0 Breast NHL Myeloma AML Bone & Hodgkins Anthracycline % Sarcoma Of Chemo Treated: 49% 39% 24%55% 34% 93%

Source: Tandem Cancer Audit 2004 AnthracyclineAnthracycline UseUse 250000Patients 231,417 ~302,000 Patients 200000

150000

100000

50000 20,200 15,794 11,706 11,650 11,346

0 Doxorubicin Doxil Epirubicin Mitoxantrone Daunorubicin Idarubicin Breast NHL Hodgkins AML Bone & Sarcoma Myeloma Other

Source: Tandem Cancer Audit 2004

TRISENOXTRISENOX®

••Purchased for $31M in 2000 ••Filed and received approval in US, Europe and Japan for “niche” indication: relapsed APL - Active in MDS, AML, MM ••Launched Q400 (US) and 2002 (EU) - Cumulative sales through 2004 ~$67M ••5 competing products launched since 2000 - MDS, MM, AML ••Limited revenue growth potential TRISENOXTRISENOX® SALESALE CEPHALONCEPHALON agreementagreement

Total Potential Deal Value = $170M • $69.5M upfront • $60M sales milestones Annual worldwide net sales Milestone amount $40M $5M $50M $10M $60M $5M $75M, $100M, $150M, $200M $10M

• $40M development milestones - APL, MM, MDS, AML • CEPH assumed field-based sales force & expenses • CEPH assumed expenses for proteasome inhibitor - Reimburses CTI for preclinical services; royalty on product sales RefocusedRefocused OperationsOperations

2005 2006

FTEs ~400 FTEs ~150 Compensation $42M Compensation* $17M Operating Exp $13M Operating Exp $9M Corporate Exp $14M Corporate Exp $6M Direct Expense $48M Direct Expense $34M TOTAL $117M TOTAL $66M

Does not include occupancy, interest payments, and depreciation or equity based compensations.

*Does not reflect solidarity adjustment or severance for Bresso headcount, includes government grants and low interest loans for ~25 FTEs TargetTarget milestonesmilestones NextNext 66--99 monthsmonths

••Secure adequate capital for regulatory filings ••Work on establishing global partner for XYOTAX™ ••Initiate confirmatory trial (PGT305) ••Report supportive data on role of estrogen in NSCLC at NY Chemotherapy Foundation Society meeting ••Report data on XYOTAX™ in radiation enhancement trials at ASTRO ••Prepare and file XYOTAX™ NDA and MAA submissions ••Pixantrone interim analysis ©CTI 2005

C E L L T H E R A P E U T I C S, I N C. (N A S D A Q : C T I C)