Galena Biopharma Takes Final Actions to Complete Spin-Off of RXi Pharmaceuticals

Galena Biopharma, Inc.

announced today that it has initiated the final steps to complete the previously announced spin-off of RXi Pharmaceuticals Corporation, Galena's wholly-owned subsidiary. To effectuate the spin-off, Galena is paying a dividend of one share of RXi Pharmaceuticals common stock for each outstanding share of Galena common stock. The dividend is being paid at the close of business on April 26, 2012 to Galena stockholders who owned shares of Galena common stock as of close of business on April 23, 2012, the record date for the dividend. Galena expects that its common stock will trade on an ex-dividend basis beginning on April 27, 2012.