Titan Reports Second Quarter 2006 Results.

SAN FRANCISCO -- Titan Pharmaceuticals, Inc. (AMEX: TTP) today announced financial results for the second quarter ended June 30, 2006.

Net loss for the second quarter of 2006 was approximately $3.4 million, or $0.09 per share, compared to a net loss of approximately $5.7 million, or $0.18

Research and development expenses were approximately $2.4 million, compared to $4.5 million for the same period last year. General and administrative expenses for the second quarter 2006 were approximately $1.2 million, compared to $1.3 million for the same period last year.

At June 30, 2006, the Company had approximately $20.3 million in cash and marketable securities.

"Financial results for the second quarter were in line with expectations, and reflect the Company's efforts to manage operating costs, while preparing for launch of our Probuphine Phase III program." stated Dr. Louis R. Bucalo, Chairman, President and CEO.

Titan's Product Development Programs in Clinical Testing

Iloperidone

Iloperidone, is being evaluated in a randomized, double-blind, placebo-controlled Phase III clinical study in schizophrenia. The study is being conducted by Vanda Pharmaceuticals, Inc., and is designed to confirm the product's efficacy. Vanda has recently stated that the study is ahead of schedule, and that it expects to report top-line results in the first quarter of 2007. If the study is successful, Vanda plans to file a New Drug Application (NDA) with the FDA for iloperidone by the end of 2007. Vanda acquired iloperidone from Titan's sublicensee, Novartis, and Vanda is funding the ongoing iloperidone Phase III development program.

Probuphine(R)

Probuphine is our novel, proprietary product in development for the treatment of opiate dependence. Over the past several months, we have achieved substantial regulatory and manufacturing progress in preparation for the initiation of a registration directed, multinational Phase III clinical development program for the treatment of opiate addiction. If successful, this Phase III program is intended to lead to potential product approval and commercialization in the U.S. and Europe. The Company plans to initiate Phase III testing for Probuphine later this year.

Spheramine(R)

Spheramine is Titan's novel, cell-based therapeutic for the treatment of advanced Parkinson's disease. Spheramine is being evaluated in an ongoing, double-blind, placebo controlled Phase IIb clinical study that is funded by Schering AG, Germany, our corporate partner for the development of Spheramine. Results from this study are expected to be available in the second half of 2007. The Investigational New Drug application (IND) for Spheramine was transferred to Schering earlier this year, and Spheramine has been granted both Fast Track and Orphan Drug designations by the FDA.

DITPA

Titan has expanded the development of DITPA, our novel, proprietary analogue of thyroid hormone (T3), beyond the potential treatment of congestive heart failure (CHF), into the potential treatment of elevated cholesterol. In addition to the two ongoing, randomized, controlled Phase II clinical studies that are evaluating DITPA in the treatment of CHF, an investigator sponsored study of DITPA as a potential treatment for elevated cholesterol is being conducted at The Johns Hopkins medical institutions in Baltimore.

Gallium maltolate

Gallium maltolate is our novel, oral agent for the potential treatment of chronic bacterial infections, bone disease and cancer. Titan has developed a new formulation of gallium maltolate with potentially improved bioavailability, and plans to use this new formulation in future clinical development of gallium maltolate.

About Titan Pharmaceuticals

Titan Pharmaceuticals, Inc. (AMEX: TTP) is a biopharmaceutical company focused on the development and commercialization of novel treatments for central nervous system disorders, cardiovascular disease, chronic bacterial infections, bone disease and other disorders. Titan's products in development utilize novel technologies that have the potential to significantly improve the treatment of these diseases. Titan also establishes partnerships with government institutions and other leading pharmaceutical development companies. For more information, please visit the Company's website at www.titanpharm.com.

The press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to the Company's development program and any other statements that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to difficulties or delays in development, testing, regulatory approval, production and marketing of the Company's drug candidates, unexpected adverse side effects or inadequate therapeutic efficacy of the Company's drug candidates that could slow or prevent product development or commercialization, the uncertainty of patent protection for the Company's intellectual property or trade secrets and the Company's ability to obtain additional financing if necessary. Such statements are based on management's current expectations, but actual results may differ materially due to various factors, including those risks and uncertainties mentioned or referred to in this press release.

TITAN PHARMACEUTICALS, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (in thousands, except per share amounts)

                              Three Months Ended    Six Months Ended
                                   June 30,             June 30,
                              -------------------  -------------------
                                2006      2005       2006      2005
                              -------------------  -------------------
                                  (unaudited)          (unaudited)
License revenue                     $1       $13         $2       $27

Operating expenses:
 Research and development        2,378     4,523      6,065     9,722
 General and administrative      1,237     1,338      2,370     2,600
                              --------- ---------  --------- ---------
   Total operating expenses      3,615     5,861      8,435    12,322
                              --------- ---------  --------- ---------
   Loss from operations         (3,614)   (5,848)    (8,433)  (12,295)

   Interest income, net of
    other expense                  188       106        302       257
                              --------- ---------  --------- ---------
Net loss                       $(3,426)  $(5,742)   $(8,131) $(12,038)
                              ========= =========  ========= =========

Basic and diluted net loss
 per share                      $(0.09)   $(0.18)    $(0.22)   $(0.37)
                              ========= =========  ========= =========

Weighted average shares used
 in computing basic and
 diluted net loss per share     38,874    32,361     37,407    32,350
                              ========= =========  ========= =========



                CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)

                                              June 30,    December 31,
                                               2006          2005
                                            ------------  ------------
                                            (unaudited)     (Note A)
Assets
  Cash, cash equivalents, and marketable
   securities                                   $20,261       $17,369
  Prepaid expenses, receivables and other
   current assets                                   496         1,216
                                            ------------  ------------
    Total current assets                         20,757        18,585
  Furniture and equipment, net                      574           788
  Investment in other companies                     150           150
  Other assets                                      214           214
                                            ------------  ------------
                                                $21,695       $19,737
                                            ============  ============
Liabilities and Stockholders' Equity
  Current liabilities                            $2,999        $3,136
  Minority interest - Series B preferred
   stock of Ingenex, Inc.                         1,241         1,241
  Stockholders' Equity                           17,455        15,360
                                            ------------  ------------
                                                $21,695       $19,737
                                            ============  ============

Note A: The balance sheet has been derived from the audited
consolidated financial statements at that date but does not include
all of the information and footnotes required by U.S. generally
accepted accounting principles for complete financial statement
presentation.