Sangamo BioSciences, Inc. (Nasdaq: SGMO) today reported financial results for the third quarter ended September 30, 2005. The consolidated net loss was $3.7 million, or $0.14 per share, as compared to a net loss of $4.6 million, or $0.18 per share, in the same period of 2004. At September 30, 2005, the company had cash, cash equivalents, investments and interest receivable of $23.7 million.

Revenues for the third quarter of 2005 were $412,000 as compared to third quarter 2004 revenues of $172,000. Third quarter 2005 revenues were from Sangamo's partnerships in the areas of enabling technologies, human therapeutics, and federal government research grants.

Total third quarter 2005 operating expenses were $4.2 million as compared to $4.8 million in the prior year period. Research and development expenses were $3.2 million for the third quarter of 2005 as compared to $3.8 million for the third quarter of 2004. General and administrative expenses were $976,000 for the third quarter of 2005 as compared to $1.1 million for the same period in 2004.

Net interest and other income for the third quarter of 2005 was $125,000 as compared to $104,000 in the comparable period of 2004.

Nine-Month Results

For the nine-month period ended September 30, 2005 the consolidated net loss was $10.6 million, or $0.42 per share compared with a consolidated net loss of $10.8 million, or $0.43 per share, in the comparable period in 2004. Revenues were $1.1 million in both nine-month periods ended September 30, 2005 and 2004. Total operating expenses for the nine months ended September 30, 2005 and 2004 were $12.0 million and $12.4 million, respectively.

Recent Highlights

Major Agreement in plant agriculture established with Dow AgroSciences.  On October 5, 2005 Sangamo and Dow AgroSciences, LLC, (DAS) a wholly owned subsidiary of The Dow Chemical Company, announced the signing of a Research and Commercial License Agreement.  The agreement provides Dow AgroSciences with access to Sangamo's ZFP technology for use in plants and plant cell cultures to develop products in areas including, on an exclusive basis, plant agriculture and industrial products, and, on a non-exclusive basis, animal health and  biopharmaceutical products produced in plants. DAS has made an initial cash payment to Sangamo of $7.5 million and will purchase up to $4 million of Sangamo common stock in the next financing transaction meeting certain criteria.  In addition, DAS will provide between $4 and $6 million in research funding over the initial three-year research term and may make up to an additional $4 million in research milestone payments to Sangamo during this same period, depending on the success of the research program.  In the event that DAS elects to extend the research program beyond the initial three-year term, DAS will provide additional research funding.  If DAS exercises its option to obtain a commercial license, Sangamo will be entitled to a one-time exercise fee of $6 million as well as minimum annual payments totaling up to $25.25 million, development and commercialization milestone payments for each product, and royalties on sales of products.  Furthermore, DAS will have the right to sublicense Sangamo's ZFP technology to third parties for use in plant cells, plants, or plant cell cultures, and Sangamo will be entitled to twenty five percent (25%) of any revenue received by DAS under such sublicenses.

Sangamo senior management updated stockholders at the Company's second Analyst and Investor Briefing.  On October 5, 2005, Sangamo provided an update to the financial community on the status and the latest developments in several of its ZFP Therapeutics(TM) programs. Dale Ando, M.D., Vice President of Therapeutic Development and CMO and Philip Gregory, D. Phil., Senior Director of Research, presented details of Sangamo's therapeutic programs, specifically the Company's ZFP TF programs for the potential treatment of diabetic neuropathy (DN), age-related macular degeneration (AMD) and its ZFN-mediated gene disruption program for the potential treatment of HIV/AIDS. Edward Lanphier, Sangamo's president and CEO and David Ichikawa, Senior Vice President of Business Development, updated the financial community on Sangamo's business development strategy and provided details of the recently announced agreement with Dow AgroSciences, LLC. The webcast of the event can be accessed via a link on the Sangamo BioSciences website http://phx.corporate-ir.net/phoenix.zhtml?c=120938&p=irol-IRHome in the Investor Relations section under "Company Overview."

Second expansion of research collaboration with LifeScan Inc. in area of regenerative medicine.  Sangamo announced the second expansion of its research collaboration with LifeScan, Inc. to use Sangamo's proprietary ZFPs to develop therapeutic cell lines as a treatment for diabetes.  LifeScan, a Johnson & Johnson company, is a leading manufacturer of blood glucose meters. Under the agreement, Sangamo will receive expanded research funding from LifeScan through 2006.

Enabling Technology agreements in protein production announced.  In September, Novo Nordisk A/S and Sangamo announced an agreement that provides Novo Nordisk with access to Sangamo's proprietary ZFP technology for evaluation for use in the field of enhanced protein production.  A similar agreement was announced with Novartis in October.

Sangamo awarded reseach funding by the Cystic Fibrosis Foundation. Sangamo has been granted research funding from the Cystic Fibrosis Foundation as part of an award obtained by collaborator Dr. Eric Sorscher, M.D., Professor in the Departments of Medicine and Physiology and Biophysics at the University of Alabama at Birmingham (UAB) and Director of the Gregory Fleming James Cystic Fibrosis Research Center. Sangamo will receive research funding over a period of two years to generate cell lines for use in cystic fibrosis (CF) research using its ZFP technology.

Preclinical animal efficacy data presented from AMD program at ARVO-sponsored conference. Sangamo scientists presented preclinical animal efficacy data from the Company's program to develop a ZFP Therapeutic(TM) for age-related "wet" macular degeneration (AMD) at the Ocular Cell and Molecular Biology (OCMB) Conference, sponsored by the Association for Research in Vision and Ophthalmology (ARVO), on September 10, 2005, in Sarasota, Florida.  The study demonstrates the efficacy of ZFP TF(TM) in an animal model of AMD and was conducted by researchers at the Wilmer Eye Institute, Johns Hopkins University School of Medicine.