ALT Ishares Diversified Alternatives Trust

PARSIPPANY, N.J., Aug. 9 /PRNewswire-FirstCall/ -- Alteon Inc. (AMEX:ALT) announced today a net loss of $3,376,069 for the three months ended June 30, 2005. This compares to a net loss of $3,501,802 for the same period in 2004. The net loss applicable to common stockholders, which includes a non-cash preferred stock dividend, was $4,482,262 or $0.08 per basic/diluted share for the three months ended June 30, 2005, as compared to $4,518,759 or $0.11 per basic/diluted share for the same period in 2004. Research and development expenses were $2,493,379 for the three months ended June 30, 2005 as compared to $2,445,563 for the same period in 2004, an increase of $47,816 or 2.0%. The increase was primarily attributed to increased preclinical costs due to additional toxicity studies offset by lower manufacturing costs. General and administrative expenses decreased slightly to $1,083,095 for the three months ended June 30, 2005, as compared $1,185,290 for the same period in 2004. The decrease is primarily related to lower business development and marketing costs offset by higher accounting and legal fees associated with Sarbanes-Oxley compliance. For the six months ended June 30, 2005, Alteon had a net loss of $8,018,368. This compares to a net loss of $7,236,795 for the same period in 2004. The net loss applicable to common stockholders, which includes a non- cash preferred stock dividend, was $10,196,139 or $0.18 per basic/diluted share for the six months ended June 30, 2005, as compared to $9,249,605 or $0.23 per basic/diluted share for the same period in 2004. Total income included $100,000 in other income derived from a licensing agreement with Avon Products Inc. Cash and cash equivalents at June 30, 2005 totaled $11.6 million. About Alteon Alteon is developing new classes of drugs that have shown the potential to reverse or slow down diseases of aging and complications of diabetes. These compounds appear to have an impact on a fundamental pathological process caused by the progressive formation of protein-carbohydrate complexes called Advanced Glycation End-products (A.G.E.s). The formation and crosslinking of A.G.E.s lead to a loss of flexibility and function in body tissues and organs and have been shown to be a causative factor in many age-related diseases and diabetic complications. Alteon has created a library of novel classes of compounds targeting the A.G.E. pathway. For more on Alteon, please visit our website, http://www.alteon.com/. Any statements contained in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties including, but not limited to, those relating to the potential of the Company's technology in therapeutic areas other than vascular diseases, the Company's ability to resume enrollment in its clinical trials, and its technology and product development (including the possibility that early clinical trial results may not be predictive of results that will be obtained in large-scale testing or that any clinical trials will not demonstrate sufficient safety and efficacy to obtain requisite approvals or will not result in marketable products), regulatory approval processes, intellectual property rights and litigation, competitive products, ability to obtain financing, and other risks identified in Alteon's filings with the Securities and Exchange Commission. The information contained herein is accurate as of the date indicated. Actual results, events or performance may differ materially. Alteon undertakes no obligation to publicly release the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Alteon Inc. Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 Income: Investment Income $100,405 $29,051 $199,554 $66,417 Other Income 100,000 100,000 100,000 151,821 Total Income 200,405 129,051 299,554 218,238 Expenses: Research and Development 2,493,379 2,445,563 6,134,479 5,129,698 General and Administrative 1,083,095 1,185,290 2,183,443 2,325,335 Total Expenses 3,576,474 3,630,853 8,317,922 7,455,033 Net Loss $(3,376,069) $(3,501,802) $(8,018,368) $(7,236,795) Preferred Stock Dividends 1,106,193 1,016,957 2,177,771 2,012,810 Net Loss Applicable to Common Stockholders $(4,482,262) $(4,518,759) $(10,196,139) $(9,249,605) Basic/Diluted Net Loss Per Share Applicable to Common Stockholders $(0.08) $(0.11) $(0.18) $(0.23) Weighted Average Common Shares Used in Computing Basic/Diluted Net Loss Per Share 57,996,711 40,472,898 57,275,874 40,472,123 Selected Balance Sheet Data (Unaudited) June 30, December 31, 2005 2004 Cash and Cash Equivalents $11,595,808 $11,175,762 Total Assets 12,587,840 11,642,395 Accumulated Deficit (215,908,789) (205,712,650) Total Stockholders' Equity 10,580,420 9,046,920 DATASOURCE: Alteon Inc. CONTACT: Susan M. Pietropaolo, Director, Corporate Communications & Investor Relations, +1-201-818-5537 direct or Web site: http://www.alteon.com/

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