AMAG Pharmaceuticals, well known as the biopharmaceutical company behind the FERAHEME® injection for treating iron deficiency anemia in adult chronic kidney disease and Allos Therapeutics, developers of a revolutionary indication for relapsed or refractory peripheral T-cell lymphoma (PTCL), called FOLOTYN®, announced entry into a definitive merger agreement today.

An all-stock merger with total equity value of roughly $686M will not only drive home a projected $55-60M in annual cost savings synergies (a majority of which should be realized within the first fiscal year after closing the deal), but result in a powerhouse company that will be able to punch significantly above its fighting weight.

Terms of the deal, which has been approved by both company boards, will see Allos stockholders gaining 0.1282 shares of AMAG common stock for each share of Allos stock owned and will result in a balance of 61% ownership by AMAG stockholders, with Allos stockholders retaining 39% of the combined company.

The new board of directors will be a fusion of five members nominated by the AMAG board and four nominated by the Allos board, with President, MD and CEO of AMAG, Brian Pereira, retaining his positions and Paul Berns, President and CEO of Allos, serving on the board.

The Company will achieve numerous benefits as a result of the merger, ranging from enhanced brand presence due to product overlap in the target markets, to an extremely healthy combined cash position ($373.7M as of June 30). With a massive non-dialysis IV iron market in the US alone estimated to be serving some 1.6M Americans, worth some $400M, with only a tiny fraction of the market actually being treated, there is strong future for FERAHEME (FDA approval in June 2009). A similar size market is estimated for FOLOTYN (FDA accelerated approval, Sept. 2009 for single agent treatment in relapsed or refractory PTCL) and ongoing negotiations outside the US with various industry leaders are progressing for both products.

Pereira was clearly pleased with the merger and telegraphed the global potential of the resulting presence, pointing to collaborations that should get both products into multiple key global markets like China and the EU. Pereira confirmed that the resulting company would continue to innovate down the biopharmaceutical vector and benefit nicely in doing so, thanks to a stronger balance sheet and the kind of resources to make portfolio growth via “in-licensing or acquisition” of new products a snap.

For more information on the deal or on AMAG Pharmaceuticals, Inc., please visit the Company’s website at: www.amagpharma.com

For more information on FERAHEME: www.FERAHEME.com

For more information on FOLOTYN: www.FOLOTYN.com