ALT Ishares Diversified Alternatives Trust

Alteon Announces Financial Results for the Second Quarter Ended June 30, 2004 PARSIPPANY, N.J., Aug. 9 /PRNewswire-FirstCall/ -- Alteon Inc. (AMEX:ALT) announced today a net loss of $3,501,802 for the three months ended June 30, 2004. This compared to a net loss of $5,061,474 for the same period in 2003. The net loss applicable to common stockholders, which included a non-cash preferred stock dividend, was $4,518,759 or $0.11 per basic/diluted share for the three months ended June 30, 2004, as compared to $5,996,181 or $0.17 per basic/diluted share for the same period in 2003. Also included in the net loss applicable to common stockholders for the three months ended June 30, 2003 was a non-cash variable stock compensation expense of $531,657. Research and development expenses for the three months ended June 30, 2004 decreased by $814,532, or 25.0%, as compared to the three months ended June 30, 2003. The decrease was primarily attributed to lower clinical costs in the three months ended June 30, 2004 associated with the Phase 2 trials, SPECTRA and PEDESTAL, as compared to the completion of the SAPPHIRE/SILVER trial for the same period in 2003, which included higher personnel and personnel-related costs, including temporary help related to accumulating and assessing the data of the SAPPHIRE/SILVER trial. General and administrative expenses decreased by $671,265, primarily related to the non-cash variable stock compensation expense of $509,988 for the three months ended June 30, 2003. Based upon the price of our common stock at June 30, 2004, there was no non-cash variable stock compensation expense/(benefit) incurred for the period. For the six months ended June 30, 2004, Alteon had a net loss of $7,236,795. This compared to a net loss of $10,284,531 for the same period in 2003. The net loss applicable to common stockholders, which included a non- cash preferred stock dividend, was $9,249,605 or $0.23 per basic/diluted share for the six months ended June 30, 2004, as compared to $12,124,695 or $0.35 per basic/diluted share for the same period in 2003. Non-cash variable stock compensation expense for the six months ended June 30, 2003 was $1,559,556. Research and development expenses for the six months ended June 30, 2004 decreased by $1,035,240 or 16.8%, as compared to the six months ended June 30, 2003. The decrease was primarily attributed to lower clinical costs in the six months ended June 30, 2004 associated with the Phase 2 trials, SPECTRA and PEDESTAL, as compared to the completion of the SAPPHIRE/SILVER trial for the same period in 2003, which included higher personnel and personnel-related costs, including temporary help related to accumulating and assessing the data of the SAPPHIRE/SILVER trial. General and administrative expenses decreased by $1,898,156, primarily related to the non-cash variable stock compensation expense of $1,475,917 for the six months ended June 30, 2003. Cash and cash equivalents at June 30, 2004 totaled $9,569,472. On July 2, 2004, pursuant to a Stock Purchase Agreement, the Company sold 8,000,000 shares of common stock to a number of new and existing institutional investors at $1.00 per share for net proceeds after fees and expenses of approximately $7,600,000. Alteon will hold its investor update conference call on September 9, 2004 at 2:00 p.m., ET. About Alteon Alteon is developing several new classes of drugs that reverse or slow down diseases of aging and complications of diabetes. These compounds have an impact on a fundamental pathological process caused by protein-glucose complexes called Advanced Glycation End-products (A.G.E.s). The formation and crosslinking of A.G.E.s lead to a loss of flexibility and function in body tissues, organs and vessels and have been shown to be a causative factor in many age-related diseases and diabetic complications. Alteon has created a library of novel classes of compounds targeting the A.G.E. Pathway. Alteon's lead compound alagebrium chloride (formerly ALT-711), the only A.G.E. Crosslink Breaker in advanced human testing, has demonstrated safety and efficacy in several Phase 2 trials and is actively being developed for systolic hypertension and heart failure. Ongoing clinical trials include SPECTRA (Systolic Pressure Efficacy and Safety Trial of Alagebrium) and PEDESTAL (Patients with Impaired Ejection Fraction and Diastolic Dysfunction: Efficacy and Safety Trial of ALagebrium). For more information on Alteon, visit the company's website at http://www.alteon.com/. Any statements contained in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties including, but not limited to, those relating to technology and product development (including the possibility that early clinical trial results may not be predictive of results that will be obtained in large-scale testing or that any clinical trials will not demonstrate sufficient safety and efficacy to obtain requisite approvals or will not result in marketable products), regulatory approval processes, intellectual property rights and litigation, competitive products, ability to obtain financing, and other risks identified in Alteon's filings with the Securities and Exchange Commission. The information contained in this press release is accurate as of the date indicated. Actual results, events or performance may differ materially. Alteon undertakes no obligation to publicly release the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Alteon Inc. Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2004 2003 2004 2003 Income: Investment Income $29,051 $55,176 $66,417 $103,898 Other Income 100,000 -- 151,821 -- Total Income $129,051 $55,176 $218,238 $103,898 Expenses: Research and Development (which includes non-cash variable stock compensation expense of $0 and $21,669, for the three months ended June 30, 2004 and June 30, 2003, respectively, and $0 and $83,639, for the six months ended June 30, 2004 and June 30, 2003, respectively) 2,445,563 3,260,095 5,129,698 6,164,938 General and Administrative (which includes non-cash variable stock compensation expense of $0 and $509,988, for the three months ended June 30, 2004 and June 30, 2003, respectively, and $0 and $1,475,917, for the six months ended June 30, 2004 and June 30, 2003, respectively) 1,185,290 1,856,555 2,325,335 4,223,491 Total Expenses $3,630,853 $ 5,116,650 $7,455,033 $10,388,429 Net Loss $(3,501,802) $(5,061,474) $(7,236,795) $(10,284,531) Preferred Stock Dividends 1,016,957 934,707 2,012,810 1,840,164 Net Loss Applicable to Common Stockholders $(4,518,759) $(5,996,181) $(9,249,605) $(12,124,695) Basic/Diluted Net Loss Per Share Applicable to Common Stockholders $(0.11) $(0.17) $(0.23) $(0.35) Weighted Average Common Shares Used in Computing Basic/ Diluted Net Loss Per Share 40,472,898 35,907,764 40,472,123 34,773,382 Selected Balance Sheet Data (Unaudited) June 30, December 31, 2004 2003 Cash and Cash Equivalents $9,569,472 $16,678,582 Total Assets 10,605,360 17,254,985 Accumulated Deficit (196,868,464) (187,618,859) Total Stockholders' Equity 8,161,821 15,384,432 DATASOURCE: Alteon Inc. CONTACT: Susan M. Pietropaolo, Director, Corporate Communications & Investor Relations of Alteon Inc., +1-201-818-5537 or Web site: http://www.alteonpharma.com/

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