Oslo, Norway, 9 February 2012 - Algeta ASA (OSE: ALGETA), a company focused on the development of novel targeted cancer therapeutics, announces its results for the fourth quarter and full year 2011.

A presentation of the results in Oslo will be webcast live from 10:00 CET and can be accessed at www.algeta.com/webcast. An international conference call will take place at 14:30 CET/08:30 Eastern time (US). Details of both events are at the end of this announcement.

Andrew Kay, Algeta's President and CEO, said: "The positive clinical results for Alpharadin delivered in mid 2011 highlight its exciting potential for treating cancer patients with bone metastases. 2012 promises to be a busy and exciting year for Algeta during which we will focus on achieving multiple strategic milestones to create further value for our shareholders. Our key objectives will center on supporting Bayer's filing for regulatory approval for Alpharadin in mid 2012 and preparing for its launch and commercialization."

"The Company ended 2011 on a sound financial footing, with NOK 317m in cash. We are also set to receive a significant milestone payment from Bayer following the first filing of Alpharadin. We strongly believe that Algeta is well positioned to become a world class oncology company developing and commercializing new and improved therapies for cancer patients based on its novel, targeted alpha- pharmaceuticals."

Highlights of the fourth quarter 2011:

* Positive results from the phase IIa BC1-09 clinical study evaluating Alpharadin (radium-223 chloride) in endocrine-refractory breast cancer patients with bone metastases were presented at the 2011 CTRC-AACR San Antonio Breast Cancer Symposium in December. These results affirmed the positive preliminary results announced by Algeta and Bayer Pharma AG in June 2011

Analysis of the trial data found that Alpharadin treatment met the trial's co- primary endpoints by significantly reducing the levels of bone alkaline phosphatase (bALP), and urine N-telopeptide (uNTX) during the 16-week treatment period in breast cancer patients with bone metastases receiving bisphosphonates. These parameters are used as key markers of bone involvement associated with breast cancer

* In October, the Company hosted R&D events in London, UK and New York City, USA. The meetings provided an international audience of investors, analysts, the media and other stakeholders with an opportunity to hear from leading experts in the field of bone metastases and prostate cancer therapy. Guest clinical speakers included investigators involved in the successful phase III ALSYMPCA trial and their presentations provided insights into, and broader context for, the phase III trial data. Guest speakers from Bayer also presented at the meetings

Post-period events

* Detailed results from the ALSYMPCA phase III study, presented in February at the 2012 Genitourinary Cancers Symposium, highlighted the positive impact of Alpharadin on skeletal-related events (SREs) associated with bone metastases from castration-resistant prostate cancer. Analysis of the SRE data found that Alpharadin treatment significantly delayed time to first SRE by 64%, as well as improving time to occurrence of three out of four SRE components

* In January 2012, Jeffrey W. Albers was appointed President, Algeta US

Selected highlights of 2011

* Positive interim analysis of phase III ALSYMPCA trial in prostate cancer patients with bone metastases

In June, Alpharadin was found to improve survival significantly versus placebo in castration-resistant prostate cancer (CRPC) patients with bone metastases in the pivotal phase III ALSYMPCA study during a pre-planned interim analysis. This study also confirmed that Alpharadin was well-tolerated. The study's Independent Data Monitoring Committee (IDMC) recommended stopping the trial early based on these positive results. The ALSYMPCA study completed enrolment of 921 patients in February 2011

In September 2011, the positive data from the ALSYMPCA study were presented at the 2011 European Multidisciplinary Cancer Congress

* Alpharadin pre-commercial activities accelerated in preparation of first regulatory filing in the US and Europe in mid 2012

Alpharadin was granted Fast Track Designation by the US Food & Drug Administration (FDA) in August 2011 in its lead indication

* The building of the new manufacturing facility in Kjeller, Norway and the production of the batches required for the regulatory dossiers are on course to be ready for the regulatory filings, which are anticipated in mid 2012

* Further progress made with preclinical platform for creating Targeted Thorium Conjugates (TTCs) to treat cancer; agreements signed with Genzyme (Sanofi) and Affibody for access to tumor-targeting molecules

* In September 2011, Mike Booth was appointed as Senior Vice President, Communications and Corporate Affairs

Key financials

* Operating revenue for the fourth quarter and full year 2011 amounted to NOK 73m and NOK 250m, respectively, compared with NOK 56m and NOK 271m in the same periods in 2010

* Operating expenses[1] for the fourth quarter and full year 2011 amounted to NOK 84m and NOK 289m, respectively, compared with NOK 67m and NOK 245m in the same periods in 2010

* As of 31 December 2011, net cash and cash equivalents amounted to NOK 317m compared to NOK 356m at the end of the third quarter 2011 and NOK 479m at year end 2010

Details of presentation and webcast

A presentation by Algeta's senior management team to investors, analysts and the press will take place in Oslo at 10:00 CET.

Shippingklubben Haakon VIIs gate 1 0161 Oslo Norway.

The presentation will also be webcast live and can be accessed at www.algeta.com/webcast. Questions can be submitted live during the webcast.

Details of international conference call

To participate in the conference call, please dial the appropriate number below five minutes prior to the call:

USA: 1 866 5088 015 UK: 44 203 147 4601 Norway: 47 21 01 09 30 Sweden: 46 850 559 840 Switzerland: 41 225 802 964 For other countries, please see the attached list of access numbers.

Participant pin code: 537060#

To access the replay, please dial:

SE: 46 (0)8 506 269 49 UK: 44 207 750 99 28 US: 18663056292 Conference reference: 266998#

A replay of the conference call will also be available at www.algeta.com.

The results report and the presentation will be available at www.algeta.com in the Investors section from 07:00 CET.

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For further information, please contact

Mike Booth 47 2202 4510 Communications & Corporate Affairs ir@algeta.com

International media enquiries: 44 207 638 9571 Mark Swallow mark.swallow@citigatedr.co.uk Citigate Dewe Rogerson

US investor enquiries: 1 646 378 2928 Jessica Lloyd jlloyd@troutgroup.com The Trout Group

About Algeta

Algeta is a company focused on developing novel targeted therapies for patients with cancer based on its alpha-pharmaceutical platform.

Algeta's lead product Alpharadin (radium-223 chloride) is in development as a potential new treatment for cancer patients with bone metastases. It is in pre- registration for castration-resistant prostate cancer (CRPC) patients with bone metastases, and filings are expected mid 2012 in the USA and Europe; Alpharadin has Fast Track designation for this indication in the USA.

Alpharadin is also under clinical investigation in breast cancer patients with bone metastases and in combination with docetaxel chemotherapy in CPRC patients with bone metastases.

Alpharadin is being developed and will be commercialized, pending approval, under a global agreement with Bayer Pharma AG.

Algeta is also exploring the potential of Targeted Thorium Conjugates (TTCs), which are based on conjugating the alpha-emitter thorium-227 to targeting molecules, as a basis of a future pipeline of tumor-targeting alpha- pharmaceutical candidates.

The Company is headquartered in Oslo, Norway, and is listed on the Oslo Stock Exchange (Ticker: ALGETA).

Alpharadin and Algeta are trademarks of Algeta ASA.

Forward-looking Statements This news release contains certain forward-looking statements 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. Such forward-looking statements reflect our current views and are based on the information currently available to Algeta. Algeta cannot give any assurance to the correctness of such statements. 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. These factors include, among other things, risks or uncertainties associated with the success of future clinical trials, collaborations with other companies in the development of targeting molecules and alpha particle payloads, risks associated with technological development, growth management, general economic and business conditions and the pricing environment, the impact of competition, the ability to successfully commercialize Alpharadin and our other products, the risk that research & development will not yield new products that achieve commercial success, manufacturing capacity, the risk of non-approval of patents not yet granted, risks in obtaining regulatory approvals for Alpharadin and our other products and difficulties of obtaining relevant governmental approvals for new products, and the other risks and uncertainties described in our annual report.

[1] The Group's operating expenses (defined as the sum of External R&D expenses, Payroll and related costs, Depreciation and General and administrative expenses) exclude currency effects and interest income This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

International access numbers: http://hugin.info/134655/R/1583952/495449.pdf

Press release: http://hugin.info/134655/R/1583952/495448.pdf

Fourth Quarter Report 2011: http://hugin.info/134655/R/1583952/495446.pdf

Fourth Quarter Presentation 2011: http://hugin.info/134655/R/1583952/495447.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Algeta ASA via Thomson Reuters ONE

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