Yesterday, after the market close, Sangamo Biosciences reported EPS of $(0.15) for 2Q:07

in-line with our estimate of $(0.13) for the quarter. During 2Q:07, we think Sangamo made

significant progress towards building out its business model — leveraging its enabling ZFP

platform technology across multiple industries (pharma, agro, biomanufacturing and research

lab) — to develop and commercialize proprietary products that provide near-term revenue

with the potential for sustainable top-line and bottom-line growth.

We expect Sangamo to end 2007 with about $75 million in cash following the closing of their

offering of approximately 3.28 million shares at $9.15 per share on July 20, 2007, along with

the upfront fee and other payments from the recent Sigma-Aldrich alliance to create products

for research labs. We anticipate continued agro-product development progress with

DowAgrosciences following the generation of specific traits in both maize and canola,

including payment of milestones later this year. Further, we expect Sangamo to receive

milestone payments and royalties from Sigma-Aldrich later this year.

We have adjusted our EPS to reflect the recent transactions and alliances, along with

increases in both R&D and G&A quarter over quarter that we anticipate to continue as

Sangamo supports its advancing clinical trials.

We think the multiple near-term revenue sources, ongoing R&D funding, research grants and

recent offering, provide Sangamo with the ongoing funding to move its proprietary

therapeutic pipeline forward and we expect the company to execute at least one therapeutic

product alliance, plus additional commercial biomanufacturing agreements within the next 12

Sangamo currently has numerous preclinical programs that could enter clinical development

over the next 12 to 18 months and could require increased financial and human resources to

manage this growth. Should Sangamo be unsuccessful in attracting future partners for these

programs, development could be stalled or Sangamo may be required to find other funding

sources including additional equity offerings that could dilute current shareholders. If

Sangamo's current clinical programs are not successful, this could significantly diminish the

company's ability to attract future partners for its therapeutic products. Since Sangamo has

limited experience conducting clinical trials, if the company is unable to attract partners, its

therapeutic product programs could encounter increased regulatory uncertainty.

Further, Sangamo is dependent upon its relationships with collaborative partners and their

interest and ability to commercialize products based upon Sangamo technology for its future

revenue. There are no current commercial products based upon ZFP technology; therefore,

market acceptance of such products is unknown. Sangamo product candidates could face

significant competition in the future, which could diminish its revenue potential.

Additionally, Sangamo is dependent upon its patent estate to create product value for its

customers. The company could also face competitive opposition and be required to defend its

(,000)

Year End December 31st

Research and development 11,184 10,909 21,527 5,430 6,309 6,350 6,350 24,439

General and administrative 4,781 5,323 7,087 1,999 2,113 2,150 2,150 8,412

Interest income, net 620 850 2,411 648 657 750 750 2,805

Basic and diluted net loss per common share ($0.55) ($0.51) ($0.55) ($0.15) ($0.15) ($0.13) ($0.13) ($0.56)

Weighted average common shares outstanding, 25,126 25,855 32,502 35,057 35,136 38,597 39,527 37,079

basic and diluted