NeoRx Corporation's Auditors Expressed Going-Concern Qualification

SEATTLE, March 8 /PRNewswire-FirstCall/ -- NeoRx Corporation announced today that in its 2005 financial statements included in the Company's Form 10-K filed last week, the audit opinion of KPMG LLP contained a going-concern qualification. Nasdaq's rules require Nasdaq-listed companies to publicly announce whenever a Form 10-K includes an audit opinion containing a going-concern qualification.

The proxy statement for NeoRx's April 11, 2006, special shareholder meeting relating to the previously announced proposed $65 million financing has been mailed to shareholders.

The Company's annual report on Form 10-K is available from the SEC's website at http://www.sec.gov or the "Investor Information" section of the Company's website at http://www.neorx.com .

About NeoRx

NeoRx is a specialty pharmaceutical company dedicated to the development and commercialization of oncology drugs that impact the lives of individuals afflicted with cancer and metastases. The Company currently is focusing its development efforts on picoplatin (NX 473), a next-generation platinum therapy that has improved safety features and is designed to overcome mechanisms of platinum-based resistance. NeoRx also is collaborating with the Scripps Florida Research Institute on the discovery of novel, small-molecule, multi-targeted protein kinase inhibitors for the treatment of cancer. For more information, visit www.neorx.com.

This release contains forward-looking statements relating to the development of the Company's products and future operating results, including but not limited to the Company's expectations regarding its use of the proceeds from the bridge loan and the proposed equity financing, financial requirements and intent and ability to solicit shareholder approval of the proposed equity financing and the amendment of the Company's Articles of Incorporation and file a related proxy statement in connection therewith, which are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe," "expect," "intend," "anticipate," "plan," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect the Company's actual product development activities and operating results include the risk that the proposed equity financing may not be completed in a timely manner, it at all, the required shareholder approvals may not be obtained for the proposed equity financing transaction and the amendment of the Articles of Incorporation, anticipated operating losses, uncertainties associated with research, development, testing and related regulatory approvals and with intellectual property, dependence of third party manufacturers, suppliers and collaborators, lack of sales and marketing experience, loss of key personnel, uncertainties associated with market acceptance, technology change and government regulation, and the other risks and uncertainties described in the Company's current and periodic reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2005. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update any forward-looking statement to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

CONTACT: Julie Rathbun, Corporate Communications of NeoRx Corporation,+1-206-286-2517, or jrathbun@neorx.com

Web site: http://www.neorx.com/