DellaCamera Sends Letter to Enzon Board of Directors

NEW YORK--(BUSINESS WIRE)--DellaCamera Capital Management, LLC, today delivered a letter to the Board of Directors of Enzon Pharmaceuticals, Inc. (NASDAQ: ENZN) stating its ongoing belief that the Company’s stock is significantly undervalued and that it is encouraged by the Company’s present commitment to enhance shareholder value. DellaCamera beneficially owns in excess of 7% of Enzon’s common stock.

The full text of the letter follows:

Dear Jeff:

While we are fully aware of the recent troubles in the financial markets, we believe that the stock of Enzon (the “Company”) has been punished to a degree that borders on the absurd, particularly given the numerous assets owned by the Company coupled with the current, robust demand for biotech/pharmaceutical properties. Furthermore, we are encouraged by the recent steps taken by the Company to explore strategic alternatives for Enzon’s specialty pharmaceuticals division, a step that we had previously advocated. In light of the value disconnect that we believe exists, and armed with the present belief that the Company is committed to enhancing shareholder value, we have increased our investment in Enzon and now have beneficial ownership that exceeds 7% of the Company.

While there is clear value inherent in Enzon’s specialty pharmaceuticals division, we call attention to the Company’s royalty streams to put the undervaluation of Enzon in perspective. At the Company’s recent stock price of $6.42 per share, Enzon’s equity market capitalization is approximately $290 million. As you may recall, we have previously calculated Enzon’s remaining 75% stake in its PEG-Intron royalty stream to be worth $300 million alone! In addition, the Company had over $190 million of cash and marketable securities as of June 30, 2008 which Enzon could easily tap to implement a share repurchase program, particularly in light of the Company’s undervaluation. Indeed, every share that is bought at a discount to intrinsic value makes every remaining share worth more; at current prices, Enzon could repurchase more than half of its outstanding shares with just this existing cash!

Notwithstanding Enzon’s stock price performance, our discussions with certain members of the Company’s Board of Directors and management team, as well as your financial advisors at Goldman Sachs, have led us to presently believe that the Company is aware of the unrealistically low trading level of the stock and is committed to addressing this matter. Furthermore, we believe that all parties understand the need for action and it gives us comfort that there are many options within the Company’s control to enhance shareholder value. As such, we look forward to engaging in further dialogue with Enzon and its advisors to help ensure that value is delivered in an effective and timely manner.

As always, and while aware of the vagaries of the markets, we remain intent upon seeing that the value of Enzon is appropriately reflected in its stock price.

Sard Verbinnen & Co.
Dan Gagnier/Renee Soto, 212-687-8080