Phio Pharmaceuticals Reports Q1 2024 Results and Provides Business Update -Four sites across the country participating in Phase 1b clinical trial for lead product candidate PH-762 -Three patients have been enrolled

Phio Pharmaceuticals Reports Q1 2024 Results

and Provides Business Update

-Four sites across the country participating

in Phase 1b clinical trial for lead product candidate PH-762

-Three patients have been enrolled

MARLBOROUGH, Mass., May 9, 2024 (GLOBE NEWSWIRE)-Phio Pharmaceuticals

Corp. (Nasdaq: PHIO), a clinical stage biotechnology company whose proprietary INTASYL siRNA gene silencing technology is designed

to make immune cells more effective in killing tumor cells, today reported its Q1 2024 financial results and provided a business update.

Recent Corporate Updates

At March 31, 2024, we had cash of $6.5 million as compared with $8.5

million at December 31, 2023.

Research and Development Expenses

Research and development expenses were $1.1 million for the three months

ended March 31, 2024 as compared with $2.1 million for the three months ended March 31, 2023, a decrease of 46%. The decrease was primarily

driven by the Company's cost rationalization measures in transitioning from a discovery research company to a product development

company resulting in decreased costs for the wind-down of preclinical studies, salary-related costs and lab supplies. Additional decreases

in research and development expenses were due to clinical consulting fees incurred in connection with the Company's IND filing and

manufacturing fees for PH-762 in the prior year period.

General and Administrative Expenses

General and administrative expenses were $1.1 million for the three

months ended March 31, 2024 as compared with $1.5 million for the three months ended March 31, 2023, a decrease of 28%. The decrease was

primarily due to decreases in consulting expenses and legal expenses as compared to the prior year period.

Net loss was $2.2 million for the three months ended March 31, 2024

as compared with $3.6 million for the three months ended March 31, 2023. The decrease in net loss was primarily due to the changes in

research and development expenses, as described above.

About Phio Pharmaceuticals Corp.

Phio Pharmaceuticals Corp. (Nasdaq: PHIO) is a clinical stage biotechnology

company whose proprietary INTASYL siRNA gene silencing technology is designed to make immune cells more effective in killing tumor

cells. INTASYL is the only self-delivering RNAi technology focused on immuno-oncology therapeutics. INTASYL drugs precisely target specific

proteins that reduce the body's ability to fight cancer, without the need for specialized formulations or drug delivery systems.

For additional information, visit the Company's website, www.phiopharma.com.

Forward Looking Statements

This press release contains forward-looking statements within the

meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "intends,"

"believes," "anticipates," "indicates," "plans," "expects," "suggests," "may,"

"would," "should," "potential," "designed to," "will," "ongoing," "estimate,"

"forecast," "target," "predict," "could" and similar references, although not all forward-looking

statements contain these words. These statements, which include statements regarding the anticipated benefits of our INTASYL RNAi

platform and the results from our ongoing clinical trials, are based only on our current beliefs, expectations and assumptions and 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 impact to our business and operations by inflationary pressures, rising interest rates, recession

fears, the development of our product candidates, results from our preclinical and clinical activities, our ability to execute on business

strategies, our ability to develop our product candidates with collaboration partners, and the success of any such collaborations, the

timeline and duration for advancing our product candidates into clinical development, the timing or likelihood of regulatory filings and

approvals, the success of our efforts to commercialize our product candidates if approved, our ability to manufacture and supply our product

candidates for clinical activities, and for commercial use if approved, the scope of protection we are able to establish and maintain

for intellectual property rights covering our technology platform, our ability to obtain future financing, market and other conditions

and those risks identified in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q under the caption "Risk

Factors" and in other filings the Company periodically makes with the SEC. 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, except as required by law.

Phio Pharmaceuticals Corp.

PHIO PHARMACEUTICALS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share and per

PHIO PHARMACEUTICALS CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)