Affymax Announces Reduction in Force to Align Resources Around Ongoing Product Investigation

  Affymax Announces Reduction in Force to Align Resources Around Ongoing
  Product Investigation

Business Wire

PALO ALTO, Calif. -- March 18, 2013

Affymax, Inc. (Nasdaq: AFFY) today announced that it will reduce its workforce
as part of a plan to focus the company’s resources on the ongoing
investigation of reported hypersensitivity reactions in patients receiving
OMONTYS® (peginesatide) Injection following the nationwide voluntary recall of
product from the market. This action will reduce the company’s workforce by
approximately 230 employees (or 75%), which includes its commercial and
medical affairs field organizations as well as other officers and employees.

“I would like to sincerely thank all of our departing employees and recognize
their important and valued contributions to the company,” said John Orwin,
chief executive officer of Affymax. “While this decision was extremely
difficult, aligning and managing our limited resources around our product
investigation is our most important priority.”

The company also announced that it will retain a bank to evaluate strategic
alternatives for the organization, including the sale of the company or its
assets, or a corporate merger. The company is considering all possible
alternatives, including further restructuring activities, wind-down of
operations or even bankruptcy proceedings.

About Affymax, Inc.

Affymax, Inc. is a biopharmaceutical company based in Palo Alto, California.
Affymax's mission is to discover, develop and deliver innovative therapies
that improve the lives of patients with kidney disease and other serious and
often life-threatening illnesses. For additional information, please visit
www.affymax.com.

This release contains forward-looking statements, including statements
regarding the potential attributes and safety profile of OMONTYS, the
continuation and success of Affymax's collaboration with Takeda, ongoing
product investigation, and strategic alternatives for Affymax. Affymax's
actual results may differ materially from those indicated in these
forward-looking statements due to risks and uncertainties, including risks
relating to the recall and adverse events, ability to identify the causes of
safety issues, ability to continue as a going concern, ability to continue the
investigation and satisfy regulatory requirements to re-introduce OMONTYS to
the market and other factors affecting the commercial potential of OMONTYS,
the continued safety and efficacy of OMONTYS, the industry and competitive
environment, regulatory requirements or actions by the FDA or other regulatory
authorities including withdrawal, existing and potential future litigation,
ability to significantly reduce costs of operations in a timely manner,
financing requirements and our ability to continue as a going concern, access
to capital and other matters that are described in Affymax's most recent 8K
and 10-Q filed with the Securities and Exchange Commission. Investors are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this release. Affymax undertakes no
obligation to update any forward-looking statement in this press release
except as required by law.

Contact:

Affymax, Inc.
Sylvia Wheeler, 650-812-8861
Vice President, Corporate Communications