iBio, Inc. Enters into Common Stock Purchase Agreement for Up to $16.0 Million with Lincoln Park Capital Receives Initial Investment of $1.0 Million New York, NY

iBio, Inc. Enters into Common Stock Purchase

Agreement for Up to $16.0 Million with Lincoln Park Capital

Receives Initial Investment of $1.0 Million

New York, NY, July 24, 2017- iBio, Inc.

(NYSE MKT: IBIO) ("iBio"), a leader in developing plant-based biopharmaceuticals,

announced today that it has entered into a $16 million common stock purchase agreement with Lincoln Park Capital Fund, LLC ("LPC"),

a Chicago-based institutional investor. Upon execution of the agreement, LPC initially purchased $1.0 million worth of common

stock at $0.40 per share. After the SEC declares a registration statement effective relating to the transaction, iBio will have

the right and the sole discretion to sell to LPC up to an additional $15.0 million worth of shares over a 36-month period subject

to certain limitations. iBio will control the timing and amount of any future investment and LPC will be obligated to make purchases

in accordance with the agreement. Proceeds from the Agreement will be used for operations, marketing, and to advance development

of iBio's product candidates and product collaborations.

There are no upper limits to the price LPC

may pay to purchase common stock from iBio and the purchase price of the shares will be based on the prevailing market prices

of iBio's shares at the time of each sale to LPC. LPC has agreed not to cause or engage in any manner whatsoever, any direct

or indirect short selling or hedging of iBio's shares of common stock. No warrants, derivatives, or other share classes

are associated with this agreement. In consideration for entering into the agreement, iBio has issued shares of common stock to

LPC as a commitment fee. The agreement may be terminated by iBio at any time, at its sole discretion, without any additional cost

"This agreement with Lincoln Park will

enable us to access capital if and when we wish (subject to customary conditions), to use possibly for our own product development

activities or for collaborative participations in products being developed for clients of our contract development and manufacturing

organization (CDMO) subsidiary," commented Robert Kay, Chairman and CEO of iBio. "Our CDMO is fully operational for

product development from feasibility through full-scale manufacturing based on our proprietary plant-based technology. As such,

we believe this capability for opportunistic equity collaboration can accelerate business growth for the CDMO and provide upside

participation for us in selected third-party products."

A more detailed description of the agreement

is set forth in iBio's Current Report on Form 8-K to be filed with the SEC.

This press release does not constitute an

offer to sell or a solicitation of an offer to buy the securities in this offering, nor there be any sale of these securities

in any jurisdiction in which such offer solicitation or sale are unlawful prior to registration or qualification under securities

laws of any such jurisdiction.

a leader in developing plant-based biopharmaceuticals, provides a range of product and process development, analytical, and manufacturing

services at the large-scale development and manufacturing facility of its subsidiary iBio CDMO LLC in Bryan, Texas. iBio applies

its technology for the benefit of its clients and the advancement of its own product interests. The Company's pipeline is comprised

of proprietary candidates for the treatment of a range of fibrotic diseases including idiopathic pulmonary fibrosis, systemic

sclerosis, and scleroderma. IBIO-CFB03, based on the Company's proprietary gene expression technology, is the Company's lead therapeutic

candidate being advanced for IND development.

Further information is available at: WWW.IBIOINC.COM

About Lincoln Park Capital Fund, LLC

LPC is an institutional investor headquartered

in Chicago, Illinois which manages a portfolio of investments in public and private entities. These investments are in a wide

range of companies and industries emphasizing life sciences, specialty financing, cleantech, energy, real estate and technology.

LPC's investments range from multiyear financial commitments to fund growth to special situation financings to long-term

strategic capital offering companies certainty, flexibility and consistency. For more information, visit www.lpcfunds.com.

STATEMENTS INCLUDED IN THIS NEWS RELEASE RELATED

TO IBIO, INC. MAY CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF

1995. SUCH STATEMENTS INVOLVE A NUMBER OF RISKS AND UNCERTAINTIES SUCH AS COMPETITIVE FACTORS, TECHNOLOGICAL DEVELOPMENT, MARKET

DEMAND, AND THE COMPANY'S ABILITY TO OBTAIN NEW CONTRACTS AND ACCURATELY ESTIMATE NET REVENUES DUE TO VARIABILITY IN SIZE, SCOPE

AND DURATION OF PROJECTS. FURTHER INFORMATION ON POTENTIAL RISK FACTORS THAT COULD AFFECT THE COMPANY'S FINANCIAL RESULTS CAN

BE FOUND IN THE COMPANY'S REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

Stephanie Carrington