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Vasogen Announces Second Quarter 2003 Results

Mississauga, Ontario - July 23, 2003

Vasogen (TSX:VAS; AMEX:VSV), today reported the results of operations for the second quarter of 2003. Comparative figures relate to the three-month and six-month periods ending May 31, 2003, and to the three-month and six-month periods ending May 31, 2002. All amounts referenced herein are in Canadian dollars, unless otherwise stated.

Cash, cash equivalents, and marketable securities held to maturity totalled $30.0 million at May 31, 2003, versus $42.7 million at year-end 2002. The total number of common shares outstanding at the end of the second quarter of 2003 was 52.0 million. Subsequent to the end of the second quarter, the Company completed a private placement for gross proceeds of US$37.9 million (Cdn$51.2 million), resulting in the issuance of 9.5 million shares at a price of US$4.00 per share.

The loss for the second quarter of 2003 was $7.3 million, or $0.14 per share, compared with a loss of $4.5 million, or $0.09 per share, in 2002. The loss for the six months ended May 31, 2003, was $12.8 million, or $0.25 per share, compared with a loss of $9.5 million, or $0.20 per share, in 2002. The increased loss resulted mainly from higher costs associated with the advancement of the Company's phase III clinical programs in chronic heart failure and peripheral arterial disease.

Research and development expenditures totalled $5.0 million in the second quarter of 2003, compared with $2.8 million in 2002. For the six months ended May 31, 2003, research and development expenses totalled $8.4 million, compared with $6.0 million in 2002. The increase in spending primarily reflects costs to support Vasogen's phase III programs.

General and administration expenditures totalled $2.6 million for the second quarter of 2003, compared with $1.9 million in 2002. For the six months ended May 31, 2003, general and administration expenses totalled $4.9 million, compared with $3.9 million in 2002. These increases resulted mainly from increases in insurance expense and other infrastructure costs associated with supporting the Company's clinical programs.

For the second quarter of 2003, investment income was comparable to the same period in 2002. For the six months ended May 31, 2003, investment income totalled $0.6 million, compared with $0.4 million for the same period in 2002.

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

Highlights:

• Vasogen announced the initiation of patient enrollment in its Phase III ACCLAIM trial in chronic heart failure. The Cleveland Clinic Foundation, Baylor College of Medicine and the DeBakey Heart Center of The Methodist Hospital in Houston, and l'Hôpital Notre-Dame du CHUM (University of Montreal), were the first centers to enroll patients in the study. The ACCLAIM trial will enroll up to 2,000 patients with advanced chronic heart failure at approximately 100 leading cardiac centers in the United States and Canada.
• The primary outcome measure of Vasogen's ACCLAIM trial is the composite endpoint of all-cause mortality or hospitalization for cardiovascular causes (time to first event). The Global Principal Investigator and Chairman of the Steering Committee for the trial is James B. Young, MD, Medical Director of the Kaufman Center for Heart Failure and Head of the Section of Heart Failure and Cardiac Transplant Medicine at The Cleveland Clinic Foundation.
• Vasogen completed a private placement totalling US$37.9 million, resulting in the issuance of 9.5 million shares at a price of US$4.00 per share. Participants in the private placement included strategic and financial investors, including Quest Diagnostics, WPG Farber Fund, AIG Global Investment, China Development Industrial Bank, George Weiss Associates, Knott Partners, Oakmont Corporation, Straus Asset Management, Sceptre Investment Counsel, and AGF Management. Needham & Company acted as placement agent for the offering.
• Milton Packer, MD, Director of the Heart Failure Center at the Columbia-Presbyterian Medical Center, a leading expert in the pathophysiology and treatment of heart failure, and Valentin Fuster, MD, PhD, Director of The Zena and Michael A. Wiener Cardiovascular Institute and The Marie-Josée and Henry R. Kravis Cardiovascular Health Center at the Mount Sinai School of Medicine, widely recognized as a leading expert in coronary disease, atherosclerosis, and thrombosis research, joined Vasogen's Scientific Advisory Board.
• The U.S. Patent and Trademark Office issued patent No. 6,572,895 covering the use of Vasogen's immune modulation therapy in the treatment of chronic heart failure.

A quarterly conference call will be conducted on Wednesday, July 23, 2003 at 4:10 p.m. Eastern Time. The conference can be accessed by calling 416-695-6120 or 1-877-461-2814 ten minutes prior to the call. An audio web cast of the event will also be available at www.vasogen.com

About Vasogen:
Vasogen is a leader in the research and commercial development of immune modulation therapies for the treatment of cardiovascular disease and other inflammatory disorders. Vasogen's immune modulation therapies are designed to target chronic inflammation by activating the immune system's physiological anti-inflammatory response to apoptosis. Vasogen's lead product is currently in pivotal phase III clinical trials for the treatment of chronic heart failure and peripheral arterial disease. The Company is also developing immune modulation therapies for the treatment of additional indications, including neuro-inflammatory diseases.

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