20062006 InvestInvest NorthwestNorthwest 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

••Singular focus: build a profitable cancer company ••Successful product acquisition track record - 1 product approved, 1 filing for FDA review, 1 in phase III, 1 in phase II ••Key value drivers in 2006 - Feedback from FDA/EMEA on pre-NDA/MAA meetings - Phase III interim results for pixantrone - NDA/MAA submissions for XYOTAX - CT-2106 phase II results ••Retained worldwide rights to all products CTICTI OncologyOncology StrategyStrategy Improve tolerability and/or efficacy of the most frequently used “cornerstone” chemotherapy drugs

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

Taxanes Anthracyclines Camptothecins Platinum Agents

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 XYOTAXXYOTAX EntersEnters CancerCancer CellsCells ThroughThrough DifferentDifferent MechanismMechanism thanthan TaxolTaxol® XYOTAXXYOTAX IntracellularIntracellular Uptake,Uptake, MetabolismMetabolism andand ReleaseRelease ofof ChemotherapyChemotherapy MayMay bebe enhancedenhanced inin presencepresence ofof estrogenestrogen IntracellularIntracellular UptakeUptake ofof XYOTAXXYOTAX inin LungLung TissueTissue AA LessLess Toxic,Toxic, MoreMore EffectiveEffective11,, EasierEasier toto UseUse TaxaneTaxane

XYOTAX Paclitaxel 15-20 minute infusion 3 to 24 hour infusion

1STELLAR 3 and 4 data in women with PS2 NSCLC XYOTAXXYOTAX forfor lunglung cancercancer XYOTAXXYOTAX PhasePhase IIIIII studiesstudies forfor NSCLCNSCLC

Comparator XYOTAX Primary # of TRIAL Design dose (mg/m2) dose (mg/m2) Endpoint pts STELLAR 2 Superiority 210 Docetaxel 75 2nd Line Open-label Q3 wks Survival 850 2 Line Q3 weeks NSC Lung Randomized (PS2 pts = 175) STELLAR 3 Superiority Paclitaxel 225 + 210 + 1st Line Open-label carbo AUC 6 carbo AUC 6 Survival 400 NSC Lung PS2 Randomized Q3 weeks Q3 wks STELLAR 4 Gemcitabine Superiority st 1000 d1, 8, 15 or 175 1 Line Open-label Survival 476 Navelbine 20 Q3 wks NSC Lung PS 2 Randomized d1, 8, 15 SurvivalSurvival EstimatesEstimates byby GenderGender STELLARSTELLAR 33 andand 44

XYOTAX Comparator XYOTAX Comparator Women Women Men Men N=97 N=101 N=293 N=290 Median Survival 285 days 233 days 220 days 207 days 1 year survival 40% 25% 30% 33%

p=0.013 EstrogenEstrogen andand XYOTAXXYOTAX MetabolismMetabolism DoesDoes GenderGender Matter?Matter? XYOTAXXYOTAX PotentialPotential forfor gender/estrogengender/estrogen enhancedenhanced effectivenesseffectiveness ••Role of estrogen in lung cancer - Normal lung cells and NSCLC cells express estrogen receptors (ERβ) - Pre-menopausal status associated with worse survival ••Role of estrogen in XYOTAX metabolism - Significant Increase in how much XYOTAX goes to lung tissue compared to standard paclitaxel - Increased metabolism of XYOTAX and release of free paclitaxel ••Potentially broadly applicable to ERβ + cancers - Lung, Colorectal, Prostate, Breast, Uterus, Ovary XYOTAXXYOTAX StrongStrong evidenceevidence forfor estrogenestrogen enhancedenhanced effectivenesseffectiveness ••STELLAR 3+4 composite analysis (n=198 women) - Significant improvement in overall survival (log rank p=0.03) • 40% survival vs. 25% at 1 year (p=0.01) ••Highly significant correlation with age and estrogen status - Age <55 or normal estrogen levels (n=113 women) - Median survival 309 days XYOTAX vs. 181 days Controls (HR 0.56, log rank p=0.008) - 43% survival XYOTAX vs. 19% Control at 1 year (p=0.003) ••Benefit prospectively confirmed in phase II trial - 35 women (no control comparator arm) - Median survival normal estrogen: 216 days vs. low estrogen: 126 days - Survival (last contact) women with normal estrogen: 75% alive vs. 41% of women with low estrogen XYOTAXXYOTAX EvidenceEvidence forfor gender/estrogengender/estrogen enhancedenhanced effectivenesseffectiveness ••Reduction in severe side effects in men and women - Anemia (p=0.008) - Neutropenia (p=0.009) - Infection (p=0.003)1 - Pneumonia (p=0.017)1 ••Minimal to no hair loss ••Short 15-20 minute infusion without need for pre-meds ••Significant cost savings (less EPO, G-CSF, antibiotics) XYOTAXXYOTAX RegulatoryRegulatory approvalapproval strategystrategy forfor lunglung cancercancer PIONEERPIONEER (PGT305)(PGT305) GenderGender specificspecific trialtrial ofof XYOTAXXYOTAX vs.vs. paclitaxelpaclitaxel

••PGT305 multi-national, randomized trial - 80 sites North America/80 sites ex-NA ••Entry criteria: (identical to STELLAR 4) - chemotherapy naïve - Stage IIIb/IV - PS=2 - women ••Treatment arms: - XYOTAX 175mg/m2; 15-20” no routine pre-meds - paclitaxel 175mg/m2; 3 hrs, routine pre-meds ••Sample size: N = 600 patients PIONEERPIONEER (PGT305)(PGT305) GenderGender specificspecific trialtrial ofof XYOTAXXYOTAX vs.vs. paclitaxelpaclitaxel

••Stratification: - Geographic region US/Australia vs. ROW - Age <55 yrs vs. ≥55 yrs - Stage IIIB vs. IV ••Primary endpoint: - Overall survival and overall survival by estrogen level ••Statistical Plan - Planned interim analysis 1H07 estradiol directed: 63 in events in 300 patients for HR 0.48 (p=0.005) or HR 0.68 (p=0.05) - Final analysis 80% power to detect a constant HR 0.75 at p=0.048 level two sided log-rank test after 379 events XYOTAXXYOTAX EstimatedEstimated regulatoryregulatory timelinestimelines

2006 2007 1st H 2nd H 1st H 2nd H U STELLAR 3, 4 N I ♦♦ ♦♦ ♦♦ T NDA ODAC Approval E D PIONEER ♦♦ S Interim T Results A T E GOG maintenance ovarian cancer trial S ♦♦ Interim Results

EU STELLAR 2, 3, 4 ♦♦ MAA PixantronePixantrone AnthracyclinesAnthracyclines

••Established “cornerstone” potentially curative therapy - Breast cancer / acute leukemia / lymphoma ••However all cause cumulative, irreversible damage to heart muscle ••Patients limited to life time maximum dose 550mg/m2

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 AnthracyclinesAnthracyclines 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 SummarySummary ofof phasephase I/III/II clinicalclinical experienceexperience

••High CR rates in relapsed aggressive NHL - CR rate 15-20% with single agent in ≥ 4th line - CR rate 40-50% in combination regimens in > 2nd line ••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 pivotal 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 I/III/II CPOPCPOP TrialTrial RelapsedRelapsed aggressiveaggressive NHLNHL

••CPOP - pixantrone replaces doxorubicin in CHOP ••Relapsed aggressive NHL failing 1-2 prior lines of chemotherapy ••Cumulative prior anthracycline dose ≤ 450mg/m2 ••Two part study - Phase I – determine MTD (34 patients) 5 dose levels up to 180mg/m2 - Phase II – evaluate effectiveness (30 patients) CPOPCPOP InducesInduces HighHigh CRCR RateRate PhasePhase I/III/II CPOPCPOP trialtrial

80%

60%

40% Rates

20% Objective Tumor Response Tumor Response Objective

0% Part 1 (n=34) Part 2 (n=30)

ORR CR PR PhasePhase I/III/II CPOPCPOP TrialTrial RelapsedRelapsed aggressiveaggressive NHLNHL

••Predominant toxicities were hematopoietic - 60% - 75% grade 4 neutropenia - 23% febrile neutropenia (n=7) - 10% infection (n=3) ••No grade 3 or 4 drug-related cardiac toxicity reported ••CPOP variant of the CHOP regimen offers a well tolerated, highly effective salvage regimen for patients who failed first-line CHOP and may not be eligible for further anthracycline exposure RandomizedRandomized TrialTrial RituxanRituxan® +/+/-- pixantronepixantrone inin relapsed/refractoryrelapsed/refractory indolentindolent NHLNHL

••InitiallyInitially designeddesigned asas phasephase IIIIII trialtrial (n=800 patients) -- Indolent NHL (up to 5 prior Rx failures) -- Randomized to Rituxan® +/- pixantrone -- Endpoints: (1o) TTP; (2o) CR rate, safety ••StudyStudy closedclosed duedue toto difficultydifficulty withwith enrollmentenrollment -- 32/800 patients randomized in 24 months ••ResultsResults confirmconfirm significantsignificant benefitbenefit ofof pixantronepixantrone onon TTPTTP andand CompleteComplete ResponseResponse (CR)(CR) ratesrates PixantronePixantrone ++ RituxanRituxan SignificantlySignificantly ProlongsProlongs TimeTime toto DiseaseDisease ProgressionProgression PrimaryPrimary endpointendpoint ofof PIX302PIX302 TrialTrial

100% P<0.001

75%

50% Progression

25% % Patients With Disease With Disease % Patients

0% 1 Year 2 Years

Pixantrone + Rituxan Rituxan PixantronePixantrone ++ RituxanRituxan SignificantlySignificantly IncreasesIncreases OverallOverall ResponseResponse RateRate SecondarySecondary endpointendpoint ofof PIX302PIX302 trialtrial

75%

P=0.02 50% % Response 25%

0% Overall Response Rate Complete Response Partial Response

Pixantrone + Rituxan Rituxan PhasePhase IIIIII TrialTrial inin 33rdrd--LineLine RelapsedRelapsed AggressiveAggressive NHLNHL ••Study Population - Aggressive NHL ≥ 2 prior regimens (transplants allowed) ••Study Design (up to 320 patients) - Randomized Phase III (Special Protocol Assessment) ••Treatment - Pixantrone vs. single agent of physician’s choice ••Primary endpoint - Complete Response (CR) or unconfirmed (uCR) ••Interim analyses: - June: CR/uCR by treatment arm if significant/adequate continue, initiate FDA dialogue - Dec: CR/uCR if significant, early closure/FDA meeting FrontFront--lineline CHOPCHOP--RR vs.vs. CPOPCPOP--RR

•• Study Population - Elderly (age 60-80) •• Study Design (up to 280 patients) - Randomized Phase II/III •• Treatment - R-CHOP vs. R-CPOP •• Endpoints - CR/uCR - Secondary endpoints: Cardiac safety & TTP StreamlinedStreamlined OperationsOperations11

2005* 2006*

FTEs ~400 FTEs2 ~155 Compensation $42M Compensation3 $21M Operating Exp $13M Operating Exp $ 9M Corporate Exp $14M Corporate Exp $ 6M Direct Expense $48M Direct Expense $39M TOTAL $117M TOTAL $75M

*Plan as of beginning of the year 1Does not include interest charges, occupancy costs, and other non-cash charges 2Net FTEs excludes ~25 employees in Bresso (covered by government grants and low interest loans) 3Includes government grants and low interest loans for ~25 employees in Bresso, Italy CapitalCapital StructureStructure

••Market capitalization: approx. $194M - 52 week range ($1.89 - $10.85) ••Shares outstanding: 97.4mm Principal Conversion Shares Coupon Maturity $82M $2.63/share 31.1mm 6.75% 2010 $55M $13.50/share 4.1mm 4.00% 2010 $66M $10.00/share 6.7mm 5.75% 2008 $30M $34.00/share 0.9mm 5.75% 2008

••Cash 12/31/05: $69M (excludes $24M reserved for April put option) ••Approximately $60M of 6.75% notes converted into 22mm shares2

1Cash includes cash and cash equivalents, securities available-for-sale, and interest receivable 2As of March 6, 2006 TargetTarget milestonesmilestones NextNext 99 monthsmonths

99Initiate confirmatory trial : PIONEER 99File for scientific advice with EMEA 99Fast track designation for PS2 women with NSCLC ••Raise adequate capital to take products through regulatory review ••FDA pre-NDA meeting ; EMEA pre-MAA meeting ••Report data on XYOTAX, pixantrone and CT-2106 at key medical conferences (SGO, ASTRO, ASCO) ••Pixantrone interim analysis ••Establish global partner for XYOTAX ••File XYOTAX™ NDA and MAA submissions ©CTI 2006

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)