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Array BioPharma Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2007

BOULDER, Colo.--(BUSINESS WIRE)--Aug. 6, 2007--Array BioPharma Inc. (NASDAQ: ARRY) today reported financial results for the fourth quarter and full year of fiscal 2007.

Array reported revenue of $8.0 million for the fourth quarter of fiscal 2007, compared to revenue of $10.1 million for the same period in fiscal 2006. The decrease is due to lower collaboration revenue resulting from executing our strategy of shifting resources to advance and expand Array's internal proprietary drug discovery programs. Array invested $16.1 million in proprietary research and development for the quarter to help advance its eight wholly owned development programs as well as its portfolio of discovery programs. This compares to $9.2 million during the same quarter last year. Array reported a net loss of $17.3 million, or ($0.39) per share, for the fourth quarter, compared to a net loss of $12.0 million, or ($0.31) per share, for the same quarter in fiscal 2006. Array ended the fourth quarter of fiscal 2007 with $141 million in cash, cash equivalents and marketable securities.

"We strengthened our financial position during the quarter through successfully raising a net of $85 million," said Robert E. Conway, Chief Executive Officer, Array BioPharma. "We will use these funds to advance our wholly owned development pipeline which now includes five oncology programs and three programs for treating inflammatory diseases. Over the next six months, we anticipate advancing two of these drugs into Phase 2 clinical trials."

    Fourth Quarter and Subsequent Accomplishments:

    Advancing Proprietary Research Programs

    --  Continued ARRY-886 (AZD6244), a novel MEK inhibitor, in Phase
        2 clinical development for the treatment of metastatic
        melanoma, colorectal, pancreatic and non-small cell lung
        cancers. These trials are being conducted by our partner
        AstraZeneca PLC.

    --  Advanced ARRY-704 (AZD8330), a novel MEK inhibitor being
        developed by AstraZeneca, into a Phase 1 clinical trial in
        cancer patients.

    --  Advanced ARRY-543, an oral, selective, reversible, small
        molecule tyrosine kinase inhibitor of both ErbB-2 and EGFR for
        cancer, in Phase 1 clinical trials. Array expects to initiate
        the expansion phase of this trial in ErbB-2 and EGFR driven
        tumors during the current quarter. Array also plans to begin a
        Phase 2 trial during the second half of 2007.

    --  Completed a Phase 1 clinical trial in healthy volunteers for
        ARRY-162, a first in class MEK inhibitor for the treatment of
        inflammatory disease, and continued a Phase 1b combination
        trial with methotrexate in stable rheumatoid arthritis
        patients. Array plans to begin a Phase 2 trial for ARRY-162 in
        the second half of 2007.

    --  Presented Phase 1 data on ARRY-162 at the Annual European
        Congress of Rheumatology (EULAR) and the International
        Association of Inflammation Societies' (IAIS) 8th World
        Congress on Inflammation in June 2007. The multiple ascending
        dose (MAD) study showed 50 to 90% inhibition of IL-1, TNF and
        IL-6 when measured over a 24-hour period with 40 mg daily.
        ARRY-162 was well-tolerated with no serious adverse events and
        showed dose proportional human pharmacokinetics.

    --  Advanced ARRY-797, a novel p38 inhibitor, into a Phase 1 MAD
        clinical trial in healthy volunteers and presented Phase 1
        single ascending dose (SAD) data at the EULAR and IAIS
        meetings. ARRY-797 met study objectives and was well-tolerated
        with no serious adverse events. There were linear increases in
        exposure with increasing oral dose ranging between 25 and 400
        mg. ARRY-797 demonstrated a maximal inhibition of greater then
        90% for the production of IL-1, TNF and PGE2, and showed
        greater than 50% inhibition at 24 hours at the high dose.

    --  Advanced ARRY-797 into a Phase 1 clinical trial in cancer
        patients. ARRY-797 has shown good efficacy and a low side
        effect profile in preclinical models of certain
        cytokine-driven cancers.

    --  Advanced ARRY-520, a small molecule Kinesin Spindle Protein
        (KSP) inhibitor, in a Phase 1 dose escalation clinical trial
        in cancer patients. ARRY-520 caused marked tumor regression in
        preclinical models of human solid tumors and human leukemias.

    --  Filed an IND application with the U.S. Food and Drug
        Administration for ARRY-380, an oral, selective ErbB-2
        inhibitor for cancer, and is able to proceed with a Phase 1
        clinical trial.

    --  Advanced ARRY-614, a p38/Tie2 inhibitor, into regulated safety
        assessment testing. Array is preparing an IND application and
        plans to file it in the second half of 2007.

    Partnered Research

    --  Received a milestone payment from Eli Lilly and Company for
        dosing the CHK-1 inhibitor, IC83, in a Phase 1 clinical trial.
        Array and ICOS scientists collaborated to invent IC83; ICOS
        was acquired by Eli Lilly in 2006.

    Enhancing Leadership

    --  Appointed John Yates, M.B. Ch.B., M.D., to the newly created
        position of Chief Medical Officer. Dr. Yates will oversee the
        medical strategy and clinical development of Array's cancer
        and inflammation pipeline.

    --  Appointed Jonathan Kay, M.D., to Array's Scientific Advisory
        Board. Dr. Kay will work with Array in the development of its
        inflammation portfolio.

    Strengthening Financial Position

    --  Raised approximately $85 million, net of offering costs,
        through an underwritten public offering of 7 million shares of
        common stock at a price to the public of $13.00 per share in
        May 2007.

Revenue for the fiscal year ended June 30, 2007, was $37.0 million, compared to revenue of $45.0 million for fiscal 2006. The net loss for the fiscal year ended June 30, 2007, was $55.4 million, or ($1.36) per share, compared to a net loss of $39.6 million, or ($1.02) per share, reported in fiscal 2006. Array invested $57.5 million in proprietary research and development for the year, compared to $33.4 million for fiscal 2006.

Array will hold a conference call on Tuesday, August 7, 2007, at 9:00 a.m. Eastern time to discuss these results. Robert E. Conway, Chief Executive Officer, and Michael Carruthers, Chief Financial Officer, will lead the call.

Conference Call Information
Date:        Tuesday, August 7, 2007
Time:        9:00 a.m. Eastern time
Toll-Free:   800-210-9006
Toll:        719-457-2621
Pass Code:   3027874
Web Cast:    www.arraybiopharma.com

A replay of the call will be available as a webcast on www.arraybiopharma.com and by phone for one week by dialing toll-free 888-203-1112 or 719-457-0820. The access code is 3027874.

About Array BioPharma

Array BioPharma Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule drugs to treat life-threatening and debilitating diseases. Our proprietary drug development pipeline is focused on the treatment of cancer and inflammatory diseases and includes clinical candidates that are designed to regulate therapeutically important targets. In addition, leading pharmaceutical and biotechnology companies collaborate with Array to discover and develop drug candidates across a broad range of therapeutic areas. For more information on Array, please go to www.arraybiopharma.com.

Forward-Looking Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about our future plans for advancing certain of our proprietary drug programs, the potential to earn future milestone payments, license fees or royalty revenue, and the plans of our collaborators to further develop drugs we have out-licensed or on which we are collaborating. These statements involve significant risks and uncertainties, including those discussed in our annual report filed on form 10-K for the year ended June 30, 2006, and in other reports filed by Array with the Securities and Exchange Commission. Because these statements reflect our current expectations concerning future events, our actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors. These factors include, but are not limited to, our ability to continue to fund and successfully progress internal research efforts and to create effective, commercially viable drugs, our ability to achieve and maintain profitability, the extent to which the pharmaceutical and biotechnology industries are willing to in-license drug candidates for their product pipelines and to collaborate with and fund third parties on their drug discovery activities, our ability to out-license our proprietary candidates on favorable terms, risks associated with our dependence on our collaborators for the clinical development and commercialization of our out-licensed drug candidates, the ability of our collaborators and of Array to meet objectives tied to milestones and royalties, and our ability to attract and retain experienced scientists and management. We are providing this information as of August 6, 2007. We undertake no duty to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements or of anticipated or unanticipated events that alter any assumptions underlying such statements.

                         Array BioPharma Inc.
                  Condensed Statements of Operations
               (in thousands, except per share amounts)
                             (Unaudited)

                            Three Months Ended    Fiscal Years Ended
                                 June 30,              June 30,
                           --------------------- ---------------------
                             2007       2006       2007       2006
                           ---------- ---------- ---------- ----------

Revenue:
  Collaboration revenue       $6,758     $9,527    $30,106    $37,738
  License and milestone
   revenue                     1,248        598      6,864      7,265
                           ---------- ---------- ---------- ----------
     Total revenue             8,006     10,125     36,970     45,003

Operating expenses (a)
  Cost of revenue (1)          6,287      9,647     24,936     39,611
  Research and development
   for proprietary drug
   discovery (2)
                              16,088      9,231     57,464     33,382
  Selling, general and
   administrative expenses
   (3)                         4,122      3,841     13,644     13,789
                           ---------- ---------- ---------- ----------
     Total operating
      expenses                26,497     22,719     96,044     86,782
                           ---------- ---------- ---------- ----------

Loss from operations         (18,491)   (12,594)   (59,074)   (41,779)

Interest expense                (246)      (209)      (979)      (670)
Interest income                1,487        760      4,611      2,835
                           ---------- ---------- ---------- ----------
Net loss                    $(17,250)  $(12,043)  $(55,442)  $(39,614)
                           ========== ========== ========== ==========

Basic and diluted net loss
 per share                    $(0.39)    $(0.31)    $(1.36)    $(1.02)
                           ========== ========== ========== ==========
Number of shares used to
 compute per share data       44,283     39,073     40,717     38,759
                           ========== ========== ========== ==========

(a) Includes stock-based
 compensation expense
  (1) Cost of revenue           $301       $462     $1,127     $2,089
  (2) Research and
   development for
   proprietary drug
   discovery
                                 583        321      1,748      1,341
  (3) Selling, general and
   administrative expenses       461        517      1,936      2,727
                           ---------- ---------- ---------- ----------
     Total                    $1,345     $1,300     $4,811     $6,157
                           ========== ========== ========== ==========

                      Summary Balance Sheet Data
                            (in thousands)

                            June 30,   June 30,
                             2007       2006
                           ---------- ----------

Cash, cash equivalents and
 marketable securities      $141,331    $70,100
Property, plant and
 equipment, gross             72,964     66,139
Working capital              120,829     56,008
Total assets                 174,974    102,173
Long-term debt                15,000     14,150
Stockholders' equity         107,703     68,641

CONTACT: Array BioPharma Inc.
Tricia Haugeto, 303-386-1193
thaugeto@arraybiopharma.com

SOURCE: Array BioPharma Inc.