ZIOPHARM

ANNOUNCES COMMENCEMENT OF PUBLIC OFFERING

NEW YORK, NY - December 3,

2009 - ZIOPHARM Oncology, Inc. (NASDAQ: ZIOP) announced today that it

intends to offer shares of its common stock and warrants to purchase shares of

its common stock in a public offering. JMP Securities LLC and Rodman &

Renshaw, LLC are acting as co-lead managers for the offering.

Company plans to use net proceeds from this offering for general corporate

purposes, which may include ongoing clinical development of its three product

candidates, palifosfamide (ZymafosTM or

ZIO-201), darinaparsin (ZinaparTM or

ZIO-101), and indibulin (ZybulinTM or

offering is being made pursuant to an effective shelf registration statement

previously filed with the Securities and Exchange Commission (File No.

333-161453). A prospectus supplement relating to the offering will be

filed with the Securities and Exchange Commission. When available, copies of the

prospectus supplement relating to this offering may be obtained by contacting

JMP Securities LLC at Equity Syndicate, 600 Montgomery Street, Suite 1100, San

Francisco, CA 94111; (415) 835-8900.

press release does not constitute an offer to sell, or the solicitation of an

offer to buy, shares of common stock and warrants. Furthermore, ZIOPHARM

Oncology, Inc. will not sell any of the common stock or warrants and has been

advised by JMP Securities LLC that the underwriters and their affiliates will

not sell any of the common stock or warrants in any state or jurisdiction in

which such offer, solicitation or sale would be unlawful prior to registration

or qualification of the securities under the securities laws of any such state

ZIOPHARM Oncology, Inc.:

biopharmaceutical company engaged in the development and commercialization of a

diverse portfolio of cancer drugs. The Company is currently focused on three

ZIO-201) references a novel composition (tris formulation) that is the

functional active metabolite of ifosfamide, a standard of care for treating

sarcoma, lymphoma, testicular, and other cancers. Palifosfamide delivers

only the cancer fighting component of ifosfamide. It is expected to overcome the

resistance seen with ifosfamide and cyclophosphamide, two of the most commonly

used alkylating drugs used to treat certain cancers. Palifosfamide does not have

the toxic metabolites of ifosfamide that cause the debilitating side effects of

"fuzzy brain" (encephalopathy) and severe bladder inflammation.

organic arsenic being developed for the treatment of various hematologic and

solid cancers. Preclinical and clinical studies to date have demonstrated that

darinaparsin is considerably less toxic than inorganic arsenic, particularly

with regard to cardiac toxicity.

novel, oral tubulin binding agent that targets both mitosis and cancer cell

migration. Indibulin is expected to have several potential benefits,

including oral dosing, application in multi-drug resistant tumors, no neuropathy

and minimal overall toxicity.

In multiple Phase I trials in cancer patients, oral indibulin has been

administered both as a single agent and in combination with favorable activity

and a promising safety profile that does not include the neurotoxicity seen with

all of the other classes of tubulin binding agents.

operations are located in Boston, MA with an executive office in New York.

Further information about ZIOPHARM may be found at www.ziopharm.com.

Safe Harbor Statement:

press release contains forward-looking statements for ZIOPHARM Oncology, Inc.

that involve risks and uncertainties that could cause the Company's actual

results to differ materially from the anticipated results and expectations

expressed in these forward-looking statements. These statements are based on

current expectations, forecasts and assumptions that are subject to risks and

uncertainties, which could cause actual outcomes and results to differ

materially from these statements. Among other things, there can be no assurance

that any of the Company's development efforts relating to its product candidates

will be successful, or such product candidates will be successfully

commercialized. Other risks that affect forward-looking information contained in

this press release include the possibility of being unable to obtain regulatory

approval of the Company's product candidates, the risk that the results of

clinical trials may not support the Company's claims, risks related to the

Company's ability to protect its intellectual property and its reliance on third

parties to develop its product candidates, risks related to the sufficiency of

existing capital reserves to fund continued operations for a particular amount

of time and uncertainties regarding the Company's ability to obtain additional

financing to support its operations thereafter. The Company assumes no

obligation to update these forward-looking statements, except as required by

Noonan Communications, LLC

Communications Group