ZIOPHARM

REPORTS THIRD QUARTER FINANCIAL RESULTS

UPDATES CLINICAL PROGRAMS

NEW YORK, NY - November 4,

2010 - ZIOPHARM Oncology, Inc. (Nasdaq: ZIOP), a biopharmaceutical cancer

company addressing unmet medical needs, today reported its financial results for

the three months ended September 30, 2010 and provided an update on the

Company's continued progress with its clinical programs.

third quarter of 2010, the Company's cash used in operations was $5.8 million,

an increase of $3.7 million from $2.1 million for the same period for 2009. The

spending increase is attributable to the deployment of additional resources for

the initiation of the Phase III trial of palifosfamide in metastatic soft tissue

sarcoma. The Company ended the September 2010 quarter with cash of approximately

$66.5 million which is expected to support operations well into

Company reported net loss from operations for the third quarter of 2010 of $8.5

million, or $(0.18) per basic share, compared to a net loss from operations of

$2.6 million, or $(0.12) per share in the third quarter of 2009. In the third

quarter of 2010, the Company recognized a non-cash loss of $3.7 million

attributable to the change in liability-classified warrants arising primarily

from an increase in the Company's stock price during the period, resulting in

total net loss for the third quarter of 2010 of $12.2 million or $(0.26) per

basic share, compared with a net loss for the third quarter of 2009 of $2.9

million, or $(0.13) per share. The non-cash warrant expense relates to fair

value accounting which requires liability-classified warrants to be

marked-to-market under U.S. generally accepted accounting

the third quarter of 2010, research and development expenses increased by $4.5

million and general and administrative expenses increased by $1.5 million over

the third quarter of 2009. The increases are attributable to the palifosfamide

Phase III pivotal trial as well as preparatory expenses for new clinical studies

not initiated in the quarter.

ZIOPHARM Oncology, Inc.:

Oncology is a biopharmaceutical company engaged in the development and

commercialization of a diverse portfolio of cancer drugs. The Company is

currently focused on three clinical programs.

ZIO-201) is a novel DNA cross-linker in class with bendamustine, ifosfamide, and

cyclophosphamide. ZIOPHARM is currently enrolling patients in a randomized,

double-blinded, placebo-controlled Phase III trial with palifosfamide

administered intravenously for the treatment of metastatic soft tissue sarcoma

in the front-line setting. The Company expects to initiate additional studies in

the near-term, including a Phase I intravenous study of palifosfamide in

combination with standard of care addressing small cell lung cancer and a Phase

I study of oral palifosfamide.

ZIO-101) is a novel mitochondrial-targeted agent (organic arsenic) being

developed intravenously for the treatment of peripheral T-cell lymphoma with a

pivotal study expected to begin in late 2011. An oral form is in a Phase I trial

ZIO-301) is a novel, oral tubulin binding agent that is expected to have several

potential benefits including oral dosing, application in multi-drug resistant

tumors, no neuropathy and minimal overall toxicity. It is currently being

studied in Phase I/II in metastatic breast cancer.

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

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, the risk that pre-clinical

or clinical trials will proceed on schedules that are consistent with the

Company's current expectations or at all, 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, as well as other risks regarding the

Company that are discussed under the heading "Risk Factors" in the Company's

filings with the United States Securities and Exchange Commission.

Forward-looking statements can be identified by the use of words such as "may,"

"will," "intend," " should," "could," "can," "would," "expect," "believe,"

"estimate," " predict," "potential," "plan," "is designed to," "target" and

similar expressions. The Company assumes no obligation to update these

forward-looking statements, except as required by law.