Richmond, California
February 5, 2002

Sangamo BioSciences, Inc. (Nasdaq: SGMO) today reported financial results for the fourth quarter ended December 31, 2001. The consolidated core net loss, which excludes non-cash charges, was $1.9 million, or $0.08 per share. In the comparable quarter of 2000, Sangamo reported a consolidated core net loss of $1.2 million or $0.05 per share. Including the non-cash charges, the net loss in the fourth quarter of 2001 was $3.4 million, or $0.14 per share, as compared to a net loss of $2.8 million, or $0.13 per share, in the same period in 2000.

Revenues for the fourth quarter of 2001 were $2.2 million as compared to fourth quarter 2000 revenues of $1.1 million. The principal components of fourth quarter 2001 revenues were revenues from the ZFP-Therapeutics collaboration with Edwards Lifesciences Corporation, Universal GeneTools(TM) revenues and revenues from Sangamo's partnerships in the areas of human therapeutics and plant agriculture.

Excluding the non-cash charges, total fourth quarter 2001 expenses were $4.7 million as compared to $3.3 million in the prior year period. The increase in expenses was primarily due to greater research and development activity, including expenses associated with Gendaq Ltd., which was acquired by Sangamo in July 2001. Research and development expenses were $3.6 million for the three months ended December 31, 2001 as compared to $2.4 million for the fourth quarter of 2000. General and administrative expenses were $1.2 million for the fourth quarter of 2001 as compared to $861,000 for the same period in 2000.

Net interest income for the fourth quarter of 2001 was $608,000 as compared to $1.1 million in the comparable period of 2000. At December 31, 2001, the company had cash, cash equivalents, and investments of $62.6 million, compared with $64.7 million at December 31, 2000.

Recent Highlights

-- First therapeutics milestone: Sangamo received a $1.4 million milestone payment from partner Edwards Lifesciences upon the delivery of a lead zinc finger protein transcription factor (ZFP TF) therapeutic product candidate that activates the vascular endothelial growth factor (VEGF) gene. Sangamo's collaboration with Edwards is focused on the development of new treatments for coronary artery disease and peripheral vascular disease.
-- Antibody production agreement: Medarex, Inc. and Sangamo entered into a collaboration to use Sangamo's ZFP technology to increase the expression of antibodies in cell lines. Medarex will provide research funding to Sangamo over a two year period and Medarex will have a non-exclusive license to use the ZFP-modified cell lines to manufacture antibody products. Sangamo will be entitled to milestone payments and royalties on product sales.
-- GeneTools(TM) agreement: Sangamo signed an agreement with Wyeth-Ayerst Laboratories, the pharmaceutical division of American Home Products Corporation, to provide ZFP TFs to Wyeth for use in its internal research programs.
-- Patent issuance: Sangamo was granted a new patent in the United Kingdom that covers methods for identifying target DNA sequences, within any gene, that will serve as preferred binding sites for ZFPs
and methods for designing ZFP TFs that bind tightly and specifically to those sites. Related applications with similar claims are pending worldwide.
-- Scientific publication: In collaboration with scientists from Pfizer Inc, Sangamo published results using ZFP TFs to repress the expression of a gene variant required for fat cell development. The paper,
published in Genes & Development, received significant media coverage, including reports in The Wall Street Journal, Dow Jones, Reuters Health, New York Newsday, the BBC News and the Times of London, as well as several trade publications.

Twelve Month Results

For the year ended December 31, 2001 the net loss attributable to common stockholders was $25.2 million, or $1.09 per share. Included in the year's net loss were non-cash charges totaling $17.0 million; excluding these charges, the core operating loss was $8.3 million, or $0.36 per share. Revenues for the year ended December 31, 2001 were $4.9 million as compared to $3.4 million in 2000. Excluding non-cash charges and a deemed dividend upon issuance of convertible preferred stock, total expenses for the years ended December 31, 2001 and 2000 were $16.4 million and $10.0 million, respectively.

At December 31, 2001, the company had cash, cash equivalents, and investments of $62.6 million as compared to $64.7 million at December 31, 2000. Total shares outstanding at December 31, 2001 were 24.5 million as compared to 22.1 million at December 31, 2000. The company issued 2.2 million shares for the purchase of Gendaq.

Sangamo BioSciences, Inc., of Richmond, CA, is focused on the research and development of novel transcription factors for the regulation of gene expression. The company's most advanced therapeutic development program involves the use of transcription factors for the treatment of cardiovascular disease. Other therapeutics development programs are focused on cancer and infectious diseases. Sangamo's Universal Gene Recognition(TM) technology enables the engineering of transcription factors known as zinc finger DNA-binding proteins, or ZFPs. By engineering ZFPs so that they can recognize a specific gene, Sangamo has created ZFP transcription factors (ZFP TFs) that can control gene expression and, consequently, cell function. The company intends to establish Universal Gene Recognition as a widely used technology for commercial applications in human therapeutics, pharmaceutical discovery, clinical diagnostics, agriculture and industrial biotechnology. Over twenty leading pharmaceutical and biotechnology companies have utilized ZFP TFs.