Sangamo BioSciences, Inc. (Nasdaq: SGMO), announced yesterday that it has priced an underwritten offering of 3,100,000 shares of common stock. The price per share of common stock sold in the offering was $6.75, resulting in net proceeds to Sangamo of approximately $20.15 million after deducting the underwriting discount. The underwriter has been granted an option for a period of 30 days to purchase up to an aggregate of 465,000 additional shares of common stock from the company to cover over-allotments, if any. Sangamo intends to use the proceeds from the financing to continue the development of its ZFP Therapeutic product candidates and research programs and for other general corporate purposes. Piper Jaffray & Co. acted as the sole underwriter for this offering.

"We believe that the initial results of our clinical and commercial development efforts put us in a position to complete this firmly underwritten offering quickly, without a lengthy marketing effort," said Edward Lanphier, Sangamo's president and CEO. "As we prepare to enter into our first Phase 2 clinical trial, this $20.15 million of additional capital puts us in a stronger position to accelerate this program and to simultaneously bring additional ZFP Therapeutic programs into the clinic. As a result of this financing, we now project ending fiscal year 2006 with approximately $50 million in cash and cash equivalents, instead of $30 million as previously projected."

The securities were offered pursuant to the company's existing shelf registration statement on Form S-3. The closing of the offering is subject to customary closing conditions.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in this offering, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This offering of shares of common stock may be made only by means of a prospectus supplement. Copies of the prospectus supplement, when available, can be obtained from the SEC's website at http://www.sec.gov .

Sangamo BioSciences, Inc. is focused on the research and development of novel DNA-binding proteins for therapeutic gene regulation and modification. The most advanced ZFP Therapeutic(TM) development programs are currently in Phase 1 clinical trials for evaluation of safety in patients with diabetic neuropathy and peripheral artery disease. Other therapeutic development programs are focused on macular degeneration, ischemic heart disease, congestive heart failure, neuropathic pain, and infectious and monogenic diseases. Sangamo's core competencies enable the engineering of a class of DNA-binding proteins known as zinc finger DNA-binding proteins (ZFPs). By engineering ZFPs that recognize a specific DNA sequence Sangamo has created ZFP transcription factors (ZFP TF(TM)) that can control gene expression and, consequently, cell function. Sangamo is also developing sequence-specific ZFP Nucleases (ZFN(TM)) for therapeutic gene modification as a treatment for a variety of monogenic diseases, such as sickle cell anemia, and for infectious diseases, such as HIV. Sangamo has established several Enabling Technology Agreements with companies to apply its ZFP Technology to enhance the production of protein pharmaceuticals.