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Vasogen Announces First Quarter 2002 Results

Toronto, Ontario - April 11, 2002

Vasogen Inc. (TSE:VAS; AMEX:MEW) today reported the results of operations for the first quarter of 2002. Comparative figures relate to the three-month period ending February 28, 2002, and to the three-month period ending February 28, 2001. All amounts referenced herein are Canadian dollars, unless otherwise noted.

The loss for the first quarter of 2002 was $5.0 million, or $0.11 per share, compared to a loss of $2.7 million, or $0.06 per share, in 2001. The increased loss resulted primarily from higher costs associated with the expansion of clinical research and development activities and the corporate costs associated with supporting these activities.

During the first quarter of 2002, research and development expenditures totaled $3.2 million, compared to $1.8 million in 2001. The increase in spending primarily reflects costs to support Vasogen's expanded clinical development activity. The Company recently completed two clinical trials, which are discussed in the "Highlights" below.

General and administration expenditures totaled $2.0 million for the first quarter of 2002, compared to $1.6 million in 2001. This increase relates to the growing infrastructure requirements necessary to support the development of the Company's immune modulation therapy.

For the first quarter of 2002, investment income totaled $0.2 million, compared to $0.6 million in 2001. Investment income was lower in 2002, compared to the prior year, primarily due to lower average interest rates in the Company's investment portfolio.

Cash, cash equivalents, and marketable securities held to maturity totaled $34.6 million, versus $39.5 million at year-end. During the first quarter of 2002, Vasogen received proceeds of $0.2 million from the exercise of options and warrants, compared to $0.1 million in 2001. The total number of common shares outstanding at the end of the first quarter of 2002 increased to 46.5 million from 46.4 million at year-end.

An expanded Management's Discussion & Analysis for the quarter is accessible on Vasogen's web site at www.vasogen.com.

• Vasogen reported positive results from a randomized, double-blind, placebo-controlled clinical trial in 73 advanced chronic heart failure patients, conducted at leading North America cardiac centers: Baylor College of Medicine and the Methodist DeBakey Heart Center; the Texas Heart Institute; The Cleveland Clinic Foundation; and the University of Montreal. The study showed that, compared to the placebo group, the group receiving Vasogen's immune modulation therapy experienced significantly fewer major events - either hospitalizations (24 versus 41) or deaths (1 versus 7). This significantly lower event rate was supported by improvements in quality of life and NYHA (New York Heart Association) clinical classification for patients receiving Vasogen's immune modulation therapy. These results have positioned the Company to accelerate its clinical development program in support of regulatory approval for the treatment of chronic heart failure. Chronic heart failure affects 5 million people, costs $34 billion (driven mainly by hospitalizations), and is implicated in 300,000 deaths in the United States each year.
  
  
• Vasogen successfully completed an open-label, multi-center clinical trial in moderate to severe psoriasis. The 113-patient study, conducted under the direction of Daniel Sauder, M.D., Professor and Chairman, Department of Dermatology, Johns Hopkins University, achieved its primary objective of identifying an optimal treatment schedule for Vasogen's immunotherapeutic intervention in psoriasis and provides the basis for continued clinical development. Vasogen believes that the emerging therapeutic profile of its immune modulation therapy makes it particularly well suited as an adjuvant therapy in moderate to severe disease. Psoriasis is an inflammatory autoimmune disease of the skin occurring in up to 2% of the population, with over $3 billion spent on treatment every year. Approximately 500,000 individuals in the United States have moderate to severe disease.
  
  
• Vasogen announced the appointment of Surya N. Mohapatra, Ph.D., President and Chief Operating Officer of Quest Diagnostics Incorporated (NYSE: DGX), to its Board of Directors. Dr. Mohapatra has held the position of President and Chief Operating Officer of Quest Diagnostics since June 1999. He combines an exceptionally strong background in U.S. and international operations, with a Ph.D. in medical physics from the University of London and The Royal College of Surgeons of England. Vasogen and Quest Diagnostics have formed a strategic alliance for the joint commercialization of Vasogen's immune modulation therapy in the United States.

Vasogen will hold its Annual and Special Meeting of shareholders on Wednesday, May 1, 2002 at 4:30 p.m. (Eastern Time) at the TSE Conference Centre. This meeting will be web cast live and will be accessible on the Vasogen web site at www.vasogen.com.

View entire press release with Financials.

This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. For this purpose, any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Without limiting the foregoing, the words "believes," "anticipates," "plans," "intends," "will," "should," "expects," "projects," and similar expressions are intended to identify forward-looking statements. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances, or events to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, those associated with the success of research and development programs, the regulatory approval process, competition, securing and maintaining corporate alliances, market acceptance of the Company's products, the availability of government and insurance reimbursements for the Company’s products, the strength of intellectual property, financing capability, the potential dilutive effects of any financing, reliance on subcontractors and key personnel and other risks detailed from time-to-time in the Company's public disclosure documents or other filings with the Canadian and U.S. securities commissions or other securities regulatory bodies. The forward-looking statements are made as of the date hereof, and the Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

CONTACT:
Glenn Neumann, Investor Relations
2155 Dunwin Drive
Mississauga, ON, Canada L5L 4M1
tel: (905) 569-9065 fax: (905) 569-9231
www.vasogen.com / investor@vasogen.com