Xenetic Biosciences, Inc. Reports Third Quarter 2020 Financial Results and Provides Corporate Update - Continued advancement of XCART platform towards an IND filing and Phase 1 Study - Leveraging partnerships with leadin

Biosciences, Inc. Reports Third Quarter 2020 Financial Results and Provides Corporate Update

Continued advancement of XCART platform towards an IND filing and Phase 1 Study

Leveraging partnerships with leading global academic institutions, including Scripps Research

MA - (November 13, 2020) - Xenetic Biosciences, Inc. (NASDAQ:

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

CAR T platform technology engineered to target patient- and tumor-specific neoantigens, today reported its financial results for

the three and nine months ended September 30, 2020 and provided a corporate update.

"We continue to make progress as

we work to advance XCART through preclinical development and into a Phase 1 study as quickly as possible. This includes finalizing

the protocol of our upcoming exploratory study in Belarus which will be used to evaluate the XCART process in a clinical setting,"

commented Jeffrey Eisenberg, Chief Executive Officer of Xenetic. "As we proceed through our preclinical development phase,

we, along with our scientific advisors, continue to refine our analysis to identify which NHL patient populations would most benefit

from XCART therapy, including those who can no longer be treated effectively with CD19 targeting therapeutics due to loss of the

Platform Technology Overview: Significantly differentiated, proprietary approach to personalized CAR T therapy 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] Xenetic believes XCART has the potential

to transform CAR T therapy.

PolyXen Platform Technology:

Patent-protected platform technology designed for protein or peptide therapeutics, enabling next-generation biological drugs by

prolonging a drug's circulating half-life and potentially improving other pharmacological properties.

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

Summary of Financial Results for Third

nine months ended September 30, 2020 was approximately $9.7 million compared to a net loss of approximately $11.6 million for the

same period in 2019. The results for the nine months ended September 30, 2020 included $6.3 million of non-cash expenses representing

the impairment of indefinite-lived intangibles of $9.2 million less a $2.9 million income tax benefit. The results for the 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 and Goodwill impairment of $3.3 million, as well as $1.1 million of transactions costs related to our acquisition

of XCART. Excluding the non-cash charges of $6.3 million for both the nine months ended September 30, 2020 and 2019, respectively,

and the $1.1 million of transaction costs in 2019, adjusted net loss was $3.4 million and $4.2 million for the nine months ended

September 30, 2020 and 2019, respectively. As of September 30, 2020, working capital was $7.2 million compared to $9.7 million

as of December 31, 2019. The decrease in working capital was primarily due to the Company's net loss for the nine months

ended September 30, 2020. The Company ended the quarter with approximately $7.1 million of cash.

is a Non-GAAP financial measure, which is utilized by management in comparing our operating performance on a consistent basis.

We present this non-GAAP financial measure because we believe such measure provides important supplemental information to management

and investors regarding financial and business trends relating to the Company's financial condition and results of operations.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated

in accordance with GAAP.

About Xenetic Biosciences

Xenetic Biosciences, Inc. is a biopharmaceutical

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

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 receives 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: our progress advancing XCART through preclinical

development towards an IND filing and a Phase 1 study, including finalizing the exploratory study in Belarus; expectations regarding

the collaboration with Pharmsynthez optimizing the overall XCART workflow and ultimately dosing NHL patients; our 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; our expectations that XCART has the potential to fuel

a robust pipeline of therapeutic assets targeting high-value oncology indications; our belief that our significantly differentiated,

proprietary approach to personalized CAR T therapy for the treatment of multiple tumor types of B-cell Non-Hodgkin lymphomas, an

area of significant unmet need, has the potential to address an initial global market opportunity of over $5 billion annually;

our belief that XCART has the potential to transform CAR T therapy; our plans to leverage PolyXen by partnering with biotechnology

and pharmaceutical companies; and our expectation regarding receipt of royalty payments under the exclusive license agreement with

Takeda Pharmaceuticals Co. Ltd. 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, performance, achievements, or results to

differ materially from the activities and results anticipated in forward-looking statements. Important factors that could cause

actual activities, performance, achievements, or results to differ materially from such plans, estimates or expectations include,

among others, (1) unexpected costs, charges or expenses resulting from the acquisition of XCART; (2) uncertainty of the expected

financial performance of the Company following completion of the acquisition of XCART; (3) failure to realize the anticipated potential

of the XCART technology; (4) the ability of the Company to implement its business strategy; (5) failure of Scripps Research and/or

Pharmsynthez or the other academic institutions in Belarus and Russia (as applicable) to perform their obligations under the respective

agreements; (6) failure of the Company and Pharmsynthez to reach agreements with the contract sites on terms favorable to the Company,

or at all; and (7) 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, general economic and business conditions, including potential adverse effects

of public health issues, such as the COVID-19 outbreak on economic activity, 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.