Contact: Gary Sender
Chief Financial Officer
Tengion Inc.
gary.sender@tengion.com

Tengion Breaks Ground on Human Neo-Organ Manufacturing Facility in Montgomery County, PA
Gov. Rendell Salutes Tengion as a Leader in Regenerative Medicine: Advancing Development of the Investigational Neo-bladder Technology Recently Reported in The Lancet.
April 18, 2006

East Norriton, Pa., April 18, 2006 -- With shovel in hand, Pennsylvania Gov. Edward G. Rendell helped Tengion Inc., a leader in developing human organs and tissues from a patient’s own cells, break ground today on the company’s commercial manufacturing facility and corporate headquarters in Montgomery County, PA.

[Caption: Steven Nichtberger, MD, President and CEO; Governor Edward G. Rendell; and David Scheer, Chairman]

“Today’s announcement that Tengion will locate its commercial manufacturing facility and headquarters in Pennsylvania is good news,” Governor Rendell said. “It shows that our targeted investments in businesses, communities and people are working. Tengion and Pennsylvania share a commitment to medical breakthroughs and scientific innovation. Tengion’s presence here will elevate the commonwealth’s reputation as a leader in the biomedical field, and show that we are creating a positive environment for life-science companies to grow and prosper.”

The 45,000 square foot facility is being built to manufacture neo-organs for late stage clinical trials and the launch of Tengion’s lead product, the neo-bladder, which is currently in development. The company intends to submit an application in mid-2006 to the U.S. Food and Drug Administration to start clinical trials later this year in children with spina bifida and a failing bladder.

The company operates its Science and Technology Center, including research laboratories and a pilot manufacturing facility, in Winston-Salem, N.C.

“Our decision to locate in Pennsylvania was the result of a thorough analysis, driven primarily by our ability to recruit a world class leadership team and employees with extensive biopharmaceutical and device oriented manufacturing experience to implement a transformational regenerative medicine technology.” said Steven Nichtberger, M.D., President and Chief Executive Officer, Tengion. “ Pennsylvania distinguished itself as a leading center in the biopharmaceutical manufacturing universe, providing a nurturing environment for a growing biotech company in a geographic region that has a legacy of biopharmaceutical manufacturing expertise. I would urge other companies to explore Pennsylvania and to locate in this outstanding and deserving community.”

Tengion is further developing the investigational neo-bladder technology recently reported on in the British medical journal The Lancet. The published study describes the first human clinical experience involving the development of a neo-organ construct from a patient’s own cells and its implantation in the patient where it continues to regenerate.

Founded in 2003, Tengion is a leader in developing autologous neo-organs and tissues, such as bladders, that are derived from the patient’s own (autologous) cells. Tengion’s proprietary approach to regenerative medicine has the potential to enable people with organ and tissue failure to lead healthier lives without donor transplants or the side effects of current therapies. For more information, visit Tengion online at: http://www.tengion.com.