Xenetic Biosciences, Inc. Reports Third Quarter 2019 Financial Results and Provides Corporate Update - Company ramps up activities to execute XCART's preclinical and regulatory strategy - - Cash runway expected to fund C

Xenetic Biosciences, Inc. Reports Third

Quarter 2019 Financial Results and Provides Corporate Update

Company ramps up activities to execute XCART's preclinical and regulatory strategy -

Cash runway expected to fund Company through preclinical advancements towards IND filing -

MA - (November 15, 2019) - Xenetic Biosciences, Inc. (NASDAQ:

XBIO) ("Xenetic" or the "Company"), a biopharmaceutical company focused on advancing XCART, a personalized

chimeric antigen receptor T cell ("CAR T") platform technology engineered to target patient-specific tumor neoantigens,

announced today its financial results for the quarter ended September 30, 2019 and provided a corporate update.

Jeffrey Eisenberg, Chief Executive Officer

of Xenetic, commented, "The third quarter marks a pivotal moment in the evolution of Xenetic to date. Following the acquisition

of our proprietary XCART platform technology, we believe we have the potential to truly advance CAR T therapy and ultimately address

the significant shortcomings that exist in the treatment of many oncology indications. As

we look forward to the remainder of 2019 and into 2020, we continue to build momentum and ramp up our efforts to achieve

the corporate, clinical and regulatory milestones that we believe will drive significant value for our shareholders."

Platform Technology Overview: Designed to develop cell-based therapeutics for the treatment of multiple tumor types

of B-cell Non-Hodgkin lymphomas, an area of significant unmet need, with the potential to address an initial global market opportunity

of over $5 billion annually.1

____________________

Market Reports World GLOBAL NON-HODGKIN LYMPHOMA THERAPEUTICS MARKET - SEGMENTED BY TYPE OF TREATMENT - GROWTH, TRENDS AND FORECASTS

(2018 - 2023); BioPharm Insight Surveillance, Epidemiology, and End Results (SEER) 9 registries, National Cancer Institute, 2017

Platform Technology: Patent-protected enabling platform technology designed for protein or peptide therapeutics,

enabling next-generation biological drugs to prolong a drug's circulating half-life and potentially improve other pharmacological

Summary of Financial Results for Third

Quarter and Nine Months Ended September 30, 2019

The Company reported

a net loss of approximately $8.9 million and $11.6 million for the three and nine months ended September 30, 2019, respectively,

compared to a net loss of approximately $1.8 million and $5.7 million for the same periods in 2018. The results of the three and

nine months ended September 30, 2019 included $6.3 million of non-cash expenses composed of in-process research and development

expenses of $3.0 million associated with the Company's acquisition of XCART and Goodwill impairment of $3.3 million, as well

as $1.1 million of transaction costs related to our acquisition of XCART. Excluding the $6.3 million of non-cash expenses and $1.1

million of transaction costs, net loss was $1.5 million and $4.2 million for the three and nine months ended September 30, 2019,

respectively. The Company has continued to reduce core expenses, control non-essential spending and maximize its available resources

to advance its research and development efforts. On July 19, 2019, the Company completed its $15.0 million public offering, resulting

in approximately $13.4 million of net proceeds to the Company. The Company ended the third quarter of 2019 with approximately $12.0

million in cash and $11.2 million of working capital.

About Xenetic Biosciences

Xenetic Biosciences, Inc. is a biopharmaceutical

company focused on progressing XCART, a personalized CAR T platform technology engineered to target patient-specific tumor neoantigens.

The Company is initially advancing cell-based therapeutics targeting the unique B-cell receptor on the surface of an individual

patient's malignant tumor cells for the treatment of B-cell lymphomas. XCART has the potential to fuel a robust pipeline

of therapeutic assets targeting high-value oncology indications.

Additionally, Xenetic is leveraging PolyXen , its proprietary drug delivery platform, by partnering with biotechnology and

pharmaceutical companies. PolyXen has demonstrated its ability to improve the half-life and other pharmacological properties

of next-generation biologic drugs. The Company has an exclusive license agreement with Takeda Pharmaceuticals Co. Ltd. in the field

of coagulation disorders and expects to earn royalty payments under this agreement.

For more information, please visit the Company's website at www.xeneticbio.com

and connect on Twitter, LinkedIn, and Facebook.

This press release contains forward-looking

statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements contained

in this press release other than statements of historical facts may constitute forward-looking statements within the meaning of

the federal securities laws. These statements can be identified by words such as "expects," "plans," "projects,"

"will," "may," "anticipates," "believes," "should," "intends," "estimates,"

and other words of similar meaning, including, but not limited to, statements regarding the Company's expectations regarding

cash runway funding the Company through preclinical advancements towards IND filing; the Company's belief that it has the

potential to advance CAR T therapy and ultimately address the significant shortcomings that exist in the treatment of many oncology

indications; the Company's expectations of achieving corporate, clinical and

regulatory milestones that will drive significant value for our shareholders; XCART's potential to address an initial global

market opportunity of over $5 billion annually; the Company's belief the XCART technology has the potential to significantly

enhance the safety and efficacy of cell therapy for B-cell lymphomas by generating patient- and tumor-specific CAR T cells; the

Company's anticipated goals for its clinical developmental program seeking to confirm the early preclinical results, and

demonstrating a more attractive safety profile than existing therapies; the Company's plans to initially apply the XCART

technology to advance cell-based therapeutics by targeting the unique B-cell receptor on the surface of an individual patient's

malignant tumor cells for the treatment of B-cell lymphomas; the Company's expectations that XCART has the potential to fuel

a robust pipeline of therapeutic assets targeting high-value oncology indications; and the Company's expectations regarding

potential royalties resulting from the sublicense with Takeda commencing by the end of 2019. Any forward-looking statements contained

herein are based on current expectations, and are subject to a number of risks and uncertainties. Many factors could cause our

actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. Important

factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others,

(1) unexpected costs, charges or expenses resulting from the acquisition of the CAR T technology; (2) uncertainty of the expected

financial performance of the Company following completion of the acquisition of the CAR T technology; (3) failure to realize the

anticipated potential of the XCART technology; (4) the ability of the Company to implement its business strategy; and (5) other

risk factors as detailed from time to time in the Company's reports filed with the SEC, including its annual report on Form

10-K, periodic quarterly reports on Form 10-Q, periodic current reports on Form 8-K and other documents filed with the SEC. The

foregoing list of important factors is not exclusive. In addition, forward-looking statements may also be adversely affected by

general market factors, competitive product development, product availability, federal and state regulations and legislation, the

regulatory process for new product candidates and indications, manufacturing issues that may arise, patent positions and litigation,

among other factors. The forward-looking statements contained in this press release speak only as of the date the statements were

made, and the Company does not undertake any obligation to update forward-looking statements, except as required by law.

Jenene Thomas Communications, LLC.