Genitope Corporation (NASDAQ: GTOP) today reported financial results for the fourth quarter and year ended December 31, 2007.

Financial Results

For the fourth quarter of 2007, we reported total operating expenses of $15.1 million and a net loss of $16.5 million, or $0.39 per share. This compares to total operating expenses of $13.9 million and a net loss of $14.3 million, or $0.40 per share, for the fourth quarter of 2006. For the year ended December 31, 2007, we reported total operating expenses of $62.3 million and a net loss of $65.6 million, or $1.63 per share. This compares to total operating expenses of $51.6 million and a net loss of $48.9 million, or $1.39 per share, for the year ended December 31, 2006.

The increase in operating expenses for the fourth quarter of 2007 and the year ended December 31, 2007 was primarily due to higher staffing levels and other operating costs incurred to support our preparations to commercialize MyVax(R) personalized immunotherapy and the development of our monoclonal antibody program, as well as recognition of higher depreciation expenses associated with our manufacturing facility and corporate headquarters. The decrease in net interest income/expense reported for the fourth quarter of 2007 and the year ended December 31, 2007 was primarily due to lower interest income earned and the increase in non-cash interest expense related to our manufacturing facility and corporate headquarters of $0.1 million and $3.6 million, respectively.

As of December 31, 2007, we had cash, cash equivalents and marketable securities of $27.9 million, including $1.0 million that is restricted as to its use and secures letters of credit that guarantee rental obligations under the lease for our manufacturing facility and corporate headquarters. The decrease from the comparable balance at December 31, 2006 of $61.3 million (including $9.6 million that secured letters of credit related to the construction build-out costs of our manufacturing facility and corporate headquarters and was restricted as to its use) was primarily due to operating expenses and the capital expenditures required to complete our manufacturing facility and corporate headquarters. The cash usage was partially offset by the completion, in May of 2007, of a follow-on underwritten public offering of 6,010,279 shares of common stock at a price of $3.85 per share, with net proceeds of approximately $21.6 million, as well as an offering of 500,000 shares of common stock at a price of $4.05 per share, with net proceeds of approximately $2.0 million.

We are evaluating our strategic alternatives with respect to all aspects of our business. We currently have capital resources that we believe to be sufficient to support our operations through approximately May 2008. As indicated in our annual report on Form 10-K for the year ended December 31, 2007 (“2007 Annual Report”) filed with the Securities and Exchange Commission on March 31, 2008, there is substantial doubt about our ability to continue as a going concern; however, the financial statements included in our 2007 Annual Report do not include any adjustments or charges that might be necessary should we be unable to continue as a going concern. The report of our independent registered public accounting firm on the financial statements included in the 2007 Annual Report contains an explanatory paragraph regarding going-concern uncertainty. For more information, stockholders are encouraged to review our 2007 Annual Report.

About Genitope Corporation

Genitope Corporation (Fremont, Calif.) is a biotechnology company focused on the research and development of novel immunotherapies for the treatment of cancer. Until we recently suspended its development, our lead product candidate was MyVax(R) personalized immunotherapy, a patient-specific active immunotherapy based on the unique genetic makeup of a patient’s tumor and is designed to activate the patient’s immune system to identify and attack cancer cells. Genitope is also developing a monoclonal antibody panel that it believes will potentially represent a novel, personalized approach for treating NHL. For more information about Genitope, please log on to http://www.genitope.com.

Forward-Looking Statements

This news release contains "forward-looking statements." For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements, including but not limited to statements about the adequacy of our existing capital resources to provide us with sufficient financial resources to support operations through May 2008 and our ability to continue as a going concern. Actual results or events may differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks that we may be unable to successfully pursue any strategic alternatives or otherwise raise any capital to fund any program, that any strategic alternative we pursue may result in the stockholders of Genitope having little or no continuing interest in Genitope’s programs, that we may be unable to settle our lease obligations and could be required to seek protection under the federal bankruptcy laws, and other important risk factors described in Genitope’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2007. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Genitope undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.