Contact:
            Investors:
              
              Progenics
      Pharmaceuticals, Inc.
              
              Richard
      W. Krawiec, Ph.D.
              Vice
      President, Corporate Affairs
              (914)
      789-2814
              rkrawiec@progenics.com
            Dory
      A. Lombardo
              Senior
      Manager, Corporate Affairs
              (914)
      789-2818
              dlombardo@progenics.com


ANNOUNCEMENT
BY PROGENICS PHARMACEUTICALS


UNDER
NASDAQ MARKETPLACE RULES





Tarrytown, N.Y., December 11, 2008 -Progenics Pharmaceuticals, Inc. (Nasdaq: PGNX) announced today that it
has received a Nasdaq Staff Deficiency Letter indicating that it fails to comply
with Nasdaq’s audit committee requirements.  As a result of Mr. Paul
F. Jacobson’s previously-announced resignation from the Company’s Board of
Directors, the Company’s Audit Committee currently has only two members, both of
whom are independent directors. Nasdaq Marketplace Rule 4350 requires a Nasdaq
listed company to have an audit committee with at least three members, all of
whom must be independent.





The
Company intends to regain compliance with this requirement within the cure
period provided by Nasdaq rules, and has begun the process of seeking a
qualified candidate to serve on its Audit Committee.





During
this period, the Company’s common stock will continue to trade on Nasdaq subject
to continued compliance with other listing requirements.





Nasdaq
Marketplace Rule 4350(d)(4) provides a cure period for restoring compliance with
the audit committee requirements. In the Company’s case, the period extends
until the Company’s next annual shareholders’ meeting, which is expected to be
held in June 2009.  If the Company were not to name a new independent
Audit Committee member in this timeframe, Nasdaq could begin proceedings to
delist its shares.








About
the Company





Progenics Pharmaceuticals,
Inc., of Tarrytown, NY, is a biopharmaceutical company focusing on the
development and commercialization of innovative therapeutic products to treat
the unmet medical needs of patients with debilitating conditions and
life-threatening diseases. Principal programs are directed toward
gastroenterology, virology--including human immunodeficiency virus (HIV) and
hepatitis C virus (HCV) infections--and oncology. Progenics, in collaboration
with Wyeth, is developing RELISTOR(R) (methylnaltrexone bromide) for the
treatment of opioid-induced side effects. Wyeth has worldwide rights to develop
and commercialize all forms of RELISTOR, except in Japan where Progenics has
granted Ono Pharmaceutical Co., Ltd. an exclusive license to the subcutaneous
form of RELISTOR for development and commercialization in that country. In the
U.S., RELISTOR (methylnaltrexone bromide) subcutaneous injection is indicated
for the treatment of opioid-induced constipation (OIC) in patients with advanced
illness who are receiving palliative care, when response to laxative therapy has
not been sufficient. In Canada, RELISTOR (methylnaltrexone bromide injection)
for subcutaneous use is indicated for the treatment of OIC in patients with
advanced illness receiving palliative care. In European member states and
Iceland, Norway and Liechtenstein, RELISTOR (methylnaltrexone bromide)
subcutaneous injection is indicated for the treatment of OIC in patients with
advanced illness who are receiving palliative care, when response to the usual
laxative therapy has not been sufficient. Marketing applications are pending for
RELISTOR in other countries. In the area of virology, Progenics is developing
the HIV entry inhibitor PRO 140, a humanized monoclonal antibody targeting the
entry co-receptor CCR5, which is in phase 2 clinical testing. A novel HCV entry
inhibitor, PRO 206, has been selected for clinical development and is currently
undergoing IND-enabling studies. In the area of oncology, the Company is
conducting a phase 1 clinical trial of a human monoclonal antibody-drug
conjugate (ADC) for the treatment of prostate cancer--a selectively targeted
cytotoxin-linked antibody directed against prostate-specific membrane antigen
(PSMA). PSMA is a protein found on the surface of prostate cancer cells as well
as in blood vessels supplying other solid tumors. Progenics is also conducting a
phase 1 clinical trial of a vaccine designed to treat prostate cancer by
stimulating an immune response to PSMA.





PROGENICS DISCLOSURE NOTICE:
This document contains
statements that do not relate strictly to historical fact, any of which may be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. When we use the words "anticipates," "plans,"
"expects" and similar expressions, we are identifying forward-looking
statements. Forward-looking statements involve known and unknown risks and
uncertainties which may cause our actual results, performance or achievements to
be materially different from those expressed or implied by forward-looking
statements. While it is impossible to identify or predict all such matters, this
may result from, among other things, the inherent uncertainty of the timing and
success of, and expense associated with, research, development, regulatory
approval and commercialization of our products and product candidates, including
the risks that clinical trials will not commence or proceed as planned; products
appearing promising in early trials will not demonstrate efficacy or safety in
larger-scale trials; clinical trial data on our products and product candidates
will be unfavorable; our products will not receive marketing approval from
regulators or, if approved, do not gain sufficient market acceptance to justify
development and commercialization costs; we, our collaborators or others might
identify side effects after the product is on the market; or efficacy or safety
concerns regarding marketed products, whether or not originating from subsequent
testing or other activities by us, governmental regulators, other entities or
organizations or otherwise, and whether or not scientifically justified, may
lead to product recalls, withdrawals of marketing approval, reformulation of the
product, additional pre-clinical testing or clinical trials, changes in labeling
of the product, the need for additional marketing applications, declining sales
or other adverse events.








We
are also subject to risks and uncertainties associated with the actions of our
corporate, academic and other collaborators and government regulatory agencies;
potential product liability; intellectual property, litigation, environmental
and other risks; the risk that licenses to intellectual property may be
terminated for our failure to satisfy performance milestones; the risk of
difficulties in, and regulatory compliance relating to, manufacturing products;
and the uncertainty of our future profitability.





Risks
and uncertainties also include general economic conditions, including interest
and currency exchange rate fluctuations and the availability of capital; changes
in generally accepted accounting principles; the impact of legislation and
regulatory compliance; the highly regulated nature of our business, including
government cost-containment initiatives and restrictions on third-party payments
for our products; trade buying patterns; the competitive climate of our
industry; and other factors set forth in our Annual Report on Form 10-K and
other reports filed with the U.S. Securities and Exchange Commission. In
particular, we cannot assure you that our lead product, RELISTOR®, will be
commercially successful or be approved in the future in other formulations,
indications or jurisdictions, or that any of our other programs will result in a
commercial product.





We
do not have a policy of updating or revising forward-looking statements and
assume no obligation to update any statements as a result of new information or
future events or developments. Thus, it should not be assumed that our silence
over time means that actual events are bearing out as expressed or implied in
forward-looking statements.





(PGNX-G)





Editor’s
Note:





Additional
information on Progenics is available at www.progenics.com.