Lion Biotechnologies Announces Second Quarter 2016 Financial Results - Company appointed new CEO, Maria Fardis, Ph.D., with deep oncology leadership experience - - Completed $100M equity financing and expanded Board

Lion Biotechnologies Announces Second

Quarter 2016 Financial Results

- Company appointed new CEO, Maria Fardis, Ph.D., with deep oncology leadership experience -

- Completed $100M equity financing and expanded Board -

NEW YORK, NY - August 8, 2016 -- Lion Biotechnologies,

Inc. (NASDAQ: LBIO), a biotechnology company developing novel cancer immunotherapies based on tumor-infiltrating lymphocytes (TIL),

today reported its second quarter 2016 financial results and provided a corporate update.

"My vision for Lion is to build a fully integrated oncology

company with development expertise in cell-based therapy. We are expanding our research and development teams and centralizing

many of the new team members at our new corporate headquarters in California. The R&D team has refined its focus on process

optimization for TIL growth and research in additional indications for which TIL technology could be utilized. We have assembled

multiple scenarios for development of TIL technology with a focus toward registration-enabling activities. We have raised $100

million to support these efforts, allowing expeditious execution with the ultimate goal of commercialization of TILs," said

Dr. Maria Fardis, Chief Executive Officer of Lion Biotechnologies.

Recent Company and Pipeline Highlights

Second Quarter and Year-to-Date 2016 Financial Results

For the second quarter ended June 30, 2016, Lion reported research

and development expenses of $4.5 million, compared to $4.1 million for the same period in 2015. Year-to-date June 30, 2016 research

and development expenses were $8.7 million compared to $6.8 million for the first six months of 2015. The increase in research

and development spending in 2016 is due, in part, to the ongoing Phase 2 study for LN-144 and an increase in hiring at the Company's

Tampa, Florida research and development facility.

General and administrative expenses increased to $7.3 million

for the quarter ended June 30, 2016, compared to $2.4 million for the same period in 2015. Year-to-date June 30, 2016 general and

administrative expenses were $10.1 million compared to $4.9 million for the same period in 2015. The increase in general and administrative

expenses for 2016 is primarily due to the hiring of new employees along with severance and $3.5 million in non-cash stock compensation

charges associated with the Company's former Chief Executive Officer.

Excluding non-cash stock compensation expense, the Company incurred

approximately $11.6 million in costs on general and administrative and research and development activities for the six months ended

June 30, 2016. After these expenditures and the net proceeds received from the $100 million private placement, the Company held

$191.6 million in cash and short-term investments as of June 30, 2016, compared to $103.7 million as of December 31, 2015.

2016 Cash Expectations

Lion anticipates that it will now invest between $35 million

and $40 million in its research, development and operations for the 2016 calendar year, resulting in approximately $23 million

to $28 million in additional spending for the remainder of 2016.

About Lion Biotechnologies, Inc.

Lion Biotechnologies, Inc. is a clinical-stage biotechnology

company focused on the development of cancer immunotherapy products for the treatment of various cancers. The company's lead product

candidate is an adoptive cell therapy using tumor-infiltrating lymphocytes (TIL) for the treatment of patients with refractory

metastatic melanoma. TIL therapy is also being evaluated in clinical trials at the National Cancer Institute, MD Anderson Cancer

Center and Moffitt Cancer Center. For more information, please visit http://www.lionbio.com.

Forward-Looking Statements

This press release contains "forward-looking statements"

as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, the company's future goals, its

operating and financial performance, additional studies and product development, expansion of the company's research platform,

and market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements

are based on current expectations of future events. If underlying assumptions prove inaccurate, or if known or unknown risks or

uncertainties materialize, actual results could vary materially from the expectations and projections. Risks and uncertainties

include, but are not limited to, the company's ability to initiate a Phase 2 trial for LN-145 in 2017, its ability to continue

to enroll patients in the Phase 2 trial for LN-144, and the amount that will be invested in 2016 in research and development. A

further list and description of these and other risks, uncertainties and other factors can be found in Lion Biotechnologies, Inc.

most recent Annual Report on Form 10-K and the company's subsequent filings with the Securities and Exchange Commission. Copies

of these filings are available online at www.sec.gov or www.lionbio.com. Any forward-looking statement made in this release speaks

only as of the date of this release. Lion Biotechnologies, Inc. does not undertake to update any forward-looking statements as

a result of new information or future events or developments.

Stern Investor Relations, Inc.

inVentivHealth Public Relations

Financial Information:

(in 000s, except per share amounts)

Condensed Statement of Operations

* Includes $593, $809, $1,178 and $1,584 in stock-based compensation costs

** Includes $4,764, $1,114, $5,958 and $1,805 in stock-based compensation costs