Completed equity public offering raising total net proceeds of approximately $104.2 million: AVEO completed an underwritten public offering of 6,352,119 shares of common stock, comprised of 5,750,000 shares of common stock initially offered and an additional 602,119 shares of common stock sold pursuant to the underwriters’ exercise of their over-allotment option, at a price of $17.50 per share. Net proceeds to AVEO were approximately $104.2 million. AVEO expects to use these proceeds for general corporate purposes, including expanding the development of tivozanib and ficlatuzumab, and advancing its monoclonal antibody pipeline, led by AV-203.

Completed patient enrollment in ongoing ficlatuzumab Phase 2 trial: AVEO has completed patient enrollment with 188 patients in the Phase 2 portion of its ongoing Phase 1b/2 trial evaluating ficlatuzumab in combination with gefitinib (Iressa™) versus gefitinib monotherapy as first-line therapy for patients with both wild-type and mutant EGFR non-small cell lung cancer (NSCLC). As reported at the American Society of Clinical Oncology (ASCO) 2011 Annual Meeting, results from the Phase 1b portion of this trial showed that ficlatuzumab was well tolerated and demonstrated clinical activity in patients with NSCLC when combined with gefitinib. AVEO continues to expect top-line data from the Phase 2 trial in 2012.

Achieved development milestone for AV-203 under agreement with Biogen Idec: AVEO achieved a preclinical development milestone for AV-203 that triggered a $5 million payment from Biogen Idec under the terms of the ex-North American option and license agreement for AVEO’s ErbB3-targeted antibody program. AVEO plans to initiate Phase 1 development of AV-203 in 2012.

Exclusive license agreement with Centocor Ortho Biotech for AVEO’s RON antibody program: AVEO entered into an exclusive license agreement with Centocor Ortho Biotech Inc. for the worldwide development and commercialization of AVEO’s internally-discovered antibodies targeting the RON (Recepteur d’Origine Nantais) receptor. Under the terms of the agreement, AVEO initially received $15 million, which included a $7.5 million up-front payment and a $7.5 million equity investment. AVEO is eligible to receive up to $540 million in milestone payments based upon the achievement of specified development, regulatory and commercialization goals. Upon commercialization, AVEO will be entitled to a tiered, double-digit royalty on net sales worldwide.

Continued visibility into AVEO’s programs with recent scientific presentations: Data from AVEO’s ongoing tivozanib clinical trials were highlighted in multiple poster presentations at ASCO. Among these data presentations, final analyses from AVEO’s 272-patient Phase 2 trial evaluating tivozanib in patients with renal cell carcinoma (RCC) showed that the median progression-free survival (PFS) achieved among all patients (both clear cell and non-clear histologies) treated with tivozanib was 11.7 months, and 14.8 months among those with clear cell RCC who had undergone nephrectomy, which is the same patient population being evaluated in TIVO-1. AVEO anticipates top-line TIVO-1 data in the fourth quarter of this year at the earliest. AVEO also presented six poster presentations of preclinical data on tivozanib and its monoclonal antibody programs, including AV-203, RON, Notch and FGFR, at the American Association for Cancer Research (AACR) 2011 Annual Meeting. Two poster presentations were also presented in collaboration with OSI Pharmaceuticals highlighting AVEO’s Human Response Platform™.

Total collaboration revenues for the second quarter ended June 30, 2011 were $26.6 million compared with $15.6 million for the second quarter of 2010. The primary driver for the increase was revenue recognized in conjunction with AVEO’s collaboration agreements with OSI, Centocor Ortho Biotech and Biogen Idec, offset in part by the fact that no revenues were earned from Merck as a result of termination of the companies’ collaboration agreement in December 2010.

Research and development (R&D) expense for the second quarter of 2011 was $25.1 million compared with $26.0 million for the second quarter of 2010. The decrease in R&D spending was primarily due to reimbursable amounts under the cost sharing provisions of AVEO’s collaboration agreement with Astellas executed in the first quarter of 2011 and a decrease in tivozanib-related costs, offset in part by an increase in ficlatuzumab-related costs.

General and administrative (G&A) expense for the second quarter of 2011 was $6.4 million compared with $3.8 million for the second quarter of 2010. The increase in G&A spending was primarily driven by an increase in personnel-related expenses, legal costs and pre-commercialization activities for tivozanib, partially offset by reimbursable amounts under the cost sharing provisions of AVEO’s collaboration agreement with Astellas.

Net loss for the second quarter of 2011 was $5.7 million, or basic and diluted net loss per share of $0.16, compared with a net loss of $15.5 million, or basic and diluted net loss per share of $0.50, for the second quarter of 2010.

AVEO ended the second quarter of 2011 with cash, cash equivalents and marketable securities of $296.8 million, which includes net proceeds of approximately $104.2 million, after payments to strategic, legal and financial advisors, from the June 2011 sale of approximately 6.4 million shares of AVEO common stock.

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Preferred Stock, $.001 par value: 5,000 shares authorized at June 30, 2011 and December 31, 2010, respectively; 0 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively

Common stock, $.001 par value: 100,000 shares authorized at June 30, 2011 and December 31, 2010, respectively; 42,901 and 35,604 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively

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