Intrexon Announces Fourth Quarter and Full Year 2017 Financial Results Quarterly GAAP revenues of $77.0 million and net loss attributable to Intrexon of $27.3 million including non-cash charges of $41.5 million Adjusted

Intrexon Announces Fourth Quarter and Full Year 2017 Financial Results

Quarterly GAAP revenues of $77.0 million and net loss attributable to Intrexon of $27.3 million

including non-cash charges of $41.5 million

Adjusted EBITDA of $13.7 million

GERMANTOWN, MD, March 1, 2018 Intrexon Corporation (NYSE: XON), a leader in the engineering and industrialization of

biology to improve the quality of life and health of the planet, today announced its fourth quarter and full year financial results for 2017.

Recent Developments:

Fourth Quarter 2017 Financial Highlights:

Full Year 2017 Financial Highlights:

has intended to be a leader in the field of industrialized biotechnology, by focusing on technology solutions that are more advanced than where most others are investing and making these technologies and their benefits tangibly real, commented

Randal J. Kirk, Chairman and Chief Executive Officer of Intrexon. We began with the belief that rationally designed, complex transgenes will be superior to tiny gene programs that can be constructed by almost anyone who tries to do so. In our

long-held view, the number of high value problems that can be solved with a single gene, for example, are very limited and, even if successful, then very easily duplicated. Further, we realized years ago that gene programs often will require

real-time control features in order to regulate their activity.

As we developed those capabilities, we learned that host cell and organism

expertise is a necessary requirement in order to know how to construct and test complex gene programs and realize their advantages in real-world situations. One may analogize this to a programming language (the gene program) and an

operating system (that of the host cell). Deep expertise in both is essential if one will succeed in advancing functional solutions to complex biological problems. Today, we believe that we are the world leaders in the design and construction of

multigenic, controllable gene programs and that we have achieved host expertise in 51 expression host species with additional expertise in diverse cell types across organisms, from the methanotroph to any of several human cells. Importantly, we

observe that our original view is becoming more widely recognized as examples of simple gene programming have become appreciated, along with their limitations.

Because we believed the opportunity space for our technology was vast and the fact that we did not have infinite capital, we went into business in 2011

with a model we refer to as the Exclusive Channel Collaboration. In essence, we formed collaborations with parties in which they paid Intrexon upfront fees, milestone payments and participating economics, as well as fees for our work on behalf of

the collaborative product. This model allowed us, in a manner that was capital-sparing for Intrexon, to investigate a multitude of opportunities, many of which have proven out very well thus far both for Intrexon and our collaborators. It always was

our intention, however, once we had them, to partner late stage products and platforms rather than early stage work. Indeed, late stage assets are worth much more than the promise of an interesting early stage program and we would rather work on

early stage programs in-house and out of the limelight.

In 2017 we began this transition. We were enabled

in this by several events, among them being (1) the quality of the Intrexon scientific leadership and our fine scientists in labs in the Americas and Europe, (2) our achievement of technical success in several projects that had been the

labor of years of effort, (3) the interest being shown in these mature programs by large incumbent companies and (4) the maturation of several of our target marketplaces so that our offerings can be better comprehended in context.

Mr. Kirk concluded, We realize that it has been painful for many who have invested in Intrexon s shares but we are determined that 2018

will be a year of vindication for those who have made this journey with us. We lead in several categories that others did not realize would even be categories when we began our work, and we intend to make the most of our advantages.

Fourth Quarter 2017 Financial Results Compared to Prior Year Period

Total revenues increased $31.0 million, or 67%, from the quarter ended December 31, 2016. Collaboration and licensing revenues increased

$28.5 million from the quarter ended December 31, 2016 primarily due to the recognition of previously deferred revenue totaling $28.9 million related to the Company s collaboration with ZIOPHARM for the treatment of

graft-versus-host disease, which was mutually terminated in December 2017. Product revenues were comparable to the quarter ended December 31, 2016. Gross margin on products increased slightly in the current period primarily due to lower cost of

cows. Service revenues increased $2.4 million, or 23%, due to an increase in the number of bovine in vitro fertilization cycles performed due to higher customer demand. Gross margin on services decreased slightly in the current period

primarily due to an increase in royalties and commissions due to vendors.

Research and development expenses increased $9.5 million, or 33%, due

primarily to increases in (i) lab supplies and consulting expenses and (ii) depreciation and amortization. Lab supplies and consulting expenses increased $4.9 million as a result of (i) the progression of certain programs into

the preclinical and clinical phases with certain of Intrexon s collaborators and (ii) the expansion or improvement of certain of the Company s platform technologies. Depreciation and amortization increased $1.5 million primarily

as a result of (i) the amortization of developed technology acquired from Oxitec, which began in November 2016 upon the completion of certain operational and regulatory events, and (ii) the amortization of developed technology acquired

from GenVec in June 2017. As a result of the Company s assessment of the recoverability of goodwill and intangible assets acquired in previous acquisitions, the Company recorded an impairment charge of $16.8 million in the fourth quarter

of 2017. Of this amount, $13.0 million was attributable to the write off of goodwill related to the AquaBounty subsidiary, which was based primarily on the fair value of the Company s holdings in AquaBounty after consideration of the

closing of a public financing by AquaBounty in January 2018.

Total other expense, net, decreased $3.6 million, or 41%. This change was primarily

attributable to changes in the fair value of the Company s equity securities and preferred stock portfolio for the period.

Financial Results Compared to Prior Year Period

Total revenues increased $40.1 million, or 21%, over the year ended December 31, 2016.

Collaboration and licensing revenues increased $35.7 million, or 33%, over the year ended December 31, 2016, primarily due to (i) the recognition of previously deferred revenue totaling $28.9 million related to the Company s

collaboration with ZIOPHARM for the treatment of graft-versus-host disease, which was mutually terminated in December 2017 and (ii) a full year of recognition of deferred revenue associated with the payment received in June 2016 from ZIOPHARM

to amend the collaborations between the parties. Product revenues decreased $3.4 million, or 9%, primarily due to lower customer demand for cows and live calves. Gross margin on products improved slightly in the current period primarily due to

a decline in the average cost of cows. Service revenues increased $7.6 million, or 18%, due to an increase in the number of bovine in vitro fertilization cycles performed due to higher customer demand. Gross margin on services decreased

slightly in the current period primarily due to an increase in royalties and commissions due to vendors.

Research and development expenses increased

$31.1 million, or 28%, due primarily to increases in (i) lab supplies and consulting expenses, (ii) salaries, benefits and other personnel costs for research and development employees, (iii) depreciation and amortization, and

(iv) rent and utilities expenses. Lab supplies and consulting expenses increased $11.3 million as a result of (i) the progression of certain programs into the preclinical and clinical phases with certain of Intrexon s

collaborators and (ii) the expansion or improvement of certain of the Company s platform technologies. Salaries, benefits and other personnel costs increased $8.0 million due to an increase in research and development headcount

necessary to invest in current or expanding platforms and to develop new

prospective collaborations and other partnering opportunities. Depreciation and amortization increased $5.8 million primarily as a result of (i) the amortization of developed technology

acquired from Oxitec, which began in November 2016 upon the completion of certain operational and regulatory events, and (ii) the amortization of developed technology acquired from GenVec in June 2017. Rent and utilities expenses increased

$3.3 million due to the expansion of certain facilities to support the Company s increased headcount. Selling general and administrative expenses increased $3.8 million, or 3%. Salaries, benefits and other personnel costs increased

$4.2 million primarily due to increased headcount to support the Company s expanding operations. Legal and professional fees increased $4.2 million primarily due to (i) increased legal fees to defend ongoing litigation and to

support our evolving corporate strategy and (ii) consulting fees related to potential business opportunities and public relations. These increases were partially offset by $4.3 million in litigation expenses recorded in the prior period

arising from the entrance of a court order in Trans Ova Genetics, L.C. s trial with XY, LLC. As a result of the Company s assessment of the recoverability of goodwill and intangible assets acquired in previous acquisitions, the Company

recorded an impairment charge of $16.8 million in the fourth quarter of 2017. Of this amount, $13.0 million was attributable to the write off of goodwill related to the AquaBounty subsidiary which was based primarily on the fair value of

the Company s holdings in AquaBounty after consideration of the closing of a public financing by AquaBounty in January 2018.

(expense), net, increased $70.3 million, or 147%. This increase was primarily attributable to (i) the change in fair market value of the Company s equity securities portfolio, investments in preferred stock and other convertible

instruments and (ii) a full year of dividend income from the Company s investment in preferred stock of ZIOPHARM.

Equity in net loss of

affiliates, which includes the Company s pro-rata share of the net losses of its investments accounted for using the equity method of accounting, decreased $6.8 million, or 32%. This decrease was

primarily due to the temporary redeployment of certain of the Company s resources away from joint venture programs towards supporting prospective new platforms and additional collaborations.

Conference Call and Webcast

The Company will host a

conference call today Thursday, March 1st, at 5:30 PM ET to discuss the fourth quarter and full year 2017 financial results and provide a general business update. The conference call may be

accessed by dialing 1-888-317-6003 (Domestic US), 1-866-284-3684 (Canada), and 1-412-317-6061 (International) and providing the

number 1163462 to join the Intrexon Corporation Call. Participants may also access the live webcast through Intrexon s website in the Investors section at http://investors.dna.com/events.

About Intrexon Corporation

Intrexon Corporation (NYSE:

XON) is Powering the Bioindustrial Revolution with Better DNA to create biologically-based products that improve the quality of life and the health of the planet. Intrexon s integrated

technology suite provides its partners across diverse markets with industrial-scale design and development of complex biological systems delivering unprecedented control, quality, function, and performance of living cells. We call our synthetic

Non-GAAP Financial Measures

This press release presents Adjusted EBITDA and Adjusted EBITDA per share, which are non-GAAP financial measures within

the meaning of applicable rules and regulations of the Securities and Exchange Commission (SEC). For a reconciliation of these measures to the most directly comparable financial measure calculated in accordance with generally accepted accounting

principles and for a discussion of the reasons why the company believes that these non-GAAP financial measures provide information that is useful to investors see the tables below under Reconciliation of

GAAP to Non-GAAP Measures. Such information is provided as additional information, not as an alternative to Intrexon s consolidated financial statements presented in accordance with GAAP, and is

intended to enhance an overall understanding of the Intrexon s current financial performance.

Intrexon, AdenoVerse, Arctic, ActoBio Therapeutics, ActoBiotics, RTS, Powering the Bioindustrial Revolution with Better DNA, and Better DNA are trademarks of

Intrexon and/or its affiliates. Other names may be trademarks of their respective owners.

Safe Harbor Statement

Some of the statements made in this press release are forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the

Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made in this press release include, but are not limited to, statements regarding clinical and

pre-clinical development activities by Intrexon and its collaborators, commercial and business development plans and the submission of regulatory filings. These forward-looking statements are based upon

Intrexon s current expectations and projections about future events and generally relate to Intrexon s plans, objectives and expectations for the development of Intrexon s business. Although management believes that the plans and

objectives reflected in or suggested by these forward-looking statements are reasonable, all forward-looking statements involve risks and uncertainties and actual future results may be materially different from the plans, objectives and expectations

expressed in this press release. These risks and uncertainties include, but are not limited to, (i) Intrexon s current and future collaborations and joint ventures; (ii) Intrexon s ability to successfully enter new markets or

develop additional products, whether with its collaborators or independently; (iii) actual or anticipated variations in Intrexon s operating results; (iv) actual or anticipated fluctuations in Intrexon s competitors or its

collaborators operating results or changes in their respective growth rates; (v) Intrexon s cash position; (vi) market conditions in Intrexon s industry; (vii) the volatility of Intrexon s stock price;

(viii) Intrexon s ability, and the ability of its collaborators, to protect Intrexon s intellectual property and other proprietary rights and technologies; (ix) Intrexon s ability, and the ability of its collaborators, to

adapt to changes in laws or regulations and policies; (x) the outcomes of pending or future litigation; (xi) the rate and degree of market acceptance of any products developed by a collaborator under an ECC or through a joint venture;

(xii) Intrexon s ability to retain and recruit key personnel; (xiii) Intrexon s expectations related to the use of proceeds from its public offerings and other financing efforts; (xiv) Intrexon s estimates regarding

expenses, future revenue, capital requirements and needs for additional financing; and (xv) Intrexon s expectations relating to its subsidiaries and other affiliates. For a discussion of other risks and uncertainties, and other important

factors, any of which could cause Intrexon s actual results to differ from those contained in the forward-looking statements, see the section entitled Risk Factors in Intrexon s Annual Report on Form 10-K, as well as discussions of potential risks, uncertainties, and other important factors in Intrexon s subsequent filings with the Securities and Exchange Commission. All information in this press release is

as of the date of the release, and Intrexon undertakes no duty to update this information unless required by law.