Phio Pharmaceuticals Reports First Quarter 2019 Financial Results and Corporate Highlights Expansion of Industry Partners With Glycostem Therapeutics BV Collaboration Dr. John A. Barrett Appointed as Chief Development Of

Pharmaceuticals Reports First Quarter 2019

Results and Corporate Highlights

Mass., May 14, 2019 /PRNewswire/ - Phio Pharmaceuticals Corp. (NASDAQ: PHIO), a biotechnology company developing the next generation

of immuno-oncology therapeutics based on its proprietary self-delivering RNAi (sd-rxRNA ) therapeutic platform,

today reported its financial results for the first quarter ended March 31, 2019 and provided a business update.

results during the first quarter of the year continue to remain consistent and in line with our projections for 2019. With an approximate

$2 million quarterly cash burn expected to continue for the remainder of the year, the Company expects to have funding into the

second half of 2020 while also providing us with the ability to significantly advance and expand our pipeline projects. In parallel

with progressing our lead pipeline products, we have expanded our collaborations to include a collaboration with Glycostem Therapeutics

and have increased our data output supporting the broad applicability of our self-delivering RNAi platform in various immune cell

types and immuno-oncology applications, such as adoptive cell therapy and direct intra-tumoral use of our products," said

Dr. Gerrit Dispersyn, President and CEO of Phio Pharmaceuticals Corp. "By bringing new talent on board and implementing improved

R&D processes, we look forward to further accelerating our R&D efforts within the financial expectations and projected

in Review and Recent Corporate Updates

Select Financial Results

At March 31, 2019, the Company had cash

of $12.7 million as compared with $14.9 million at December 31, 2018. The Company expects its cash to provide funding into the

second half of 2020.

Research and Development Expenses

Research and development expenses for the

quarter ended March 31, 2019 were $1.1 million as compared with $1.4 million for the quarter ended March 31, 2018. The decrease

was primarily due to a reduction in headcount and the payroll-related expenses, as well as

the completion of the Company's drug manufacture of RXI-762 in the prior year period.

General and Administrative Expenses

General and administrative expenses for

the quarter ended March 31, 2019 were $1.1 million as compared with $0.9 million for the quarter ended March 31, 2018. The increase

was primarily due to an increase in stock-based compensation expense related to the restricted

stock issued to the Company's former Chief Executive Officer in lieu of cash compensation.

Net loss for the quarter ended March 31,

2019 was $2.1 million, compared with $2.2 million for the quarter ended March 31, 2018. The decrease was primarily due to changes

in operating expenses, as discussed above.

About Phio Pharmaceuticals

Phio Pharmaceuticals Corp. (NASDAQ: PHIO)

is a biotechnology company developing the next generation of immuno-oncology therapeutics based on its self-delivering RNAi (sd-rxRNA )

therapeutic platform. The Company's efforts are focused on developing sd-rxRNA therapeutic compounds to be used in the context

of immunotherapy by targeting checkpoints or other gene targets, by local or intravenous injections. We aim to maximize the power

of our sd-rxRNA therapeutic compounds by weaponizing immune effector cells to overcome tumor immune escape providing patients

with a powerful new treatment option that goes beyond current treatment modalities. For additional information, visit the Company's

website, www.phiopharma.com.

Forward-Looking Statements

press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking

statements are neither historical facts nor assurances of future performance. These statements are based only on our current beliefs,

expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events

and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject

to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our

control. Our actual results may differ materially from those indicated in the forward-looking statements as a result of a

number of important factors, including, but not limited to, the safety and efficacy of our product candidates, future success of

our clinical trials and scientific studies, expected duration of available cash runway, our ability to enter into strategic partnerships

and the future success of these strategic partnerships, the availability of funds and resources to pursue our research and development

projects and general economic conditions. Our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q

include detailed risks under the caption "Risk Factors" that may affect our business, results of operations and financial

condition. Readers are urged to review these risk factors and to not act in reliance on any forward-looking statements, as actual

results may differ from those contemplated by our forward-looking statements. Phio does not undertake to update forward-looking

statements to reflect a change in its views, events or circumstances that occur after the date of this release.

Phio Pharmaceuticals Corp.