Delcath Announces Closing of $14.2 Million Investment by Institutional Investors Proceeds To Fund Completion of Phase III Trial for the Treatment of Liver Cancer.

NEW YORK, N.Y.--Sept. 26, 2007--Delcath Systems, Inc. (Nasdaq:DCTH) announced today that the Company completed the sale of approximately 3.8 million shares of its common stock plus warrants to purchase 1.9 million shares of common stock with an exercise price of $4.53 per share. Selected institutional investors, led by Winslow Management of Boston, purchased units via a registered direct offering. Each unit consisted of one share of common stock and one warrant to purchase 0.5 shares of common stock, and was priced at $3.70 per unit. Total gross proceeds were approximately $14.2 million, before deducting offering fees and expenses. Canaccord Adams Inc. and ThinkEquity Partners, LLC acted as placement agents for the offering.

The Company intends to use the net proceeds from this offering to fund the continued advancement of the Company's Phase II and Phase III clinical trials currently underway, to fund new research and development activities, and for other general corporate purposes. Including the expected net proceeds from this offering, it is anticipated that the Company currently has sufficient capital to fund operations through the completion of its pivotal Phase III clinical trial.

Richard L. Taney, Chief Executive Officer of Delcath, commented, "This financing strengthens our balance sheet and allows us to continue to expand enrollment in our pivotal Phase III trial as we look towards regulatory approval and the commercialization of our core chemotherapy delivery platform. In addition, it gives us an improved capital position to pursue strategic opportunities for our company in the pharmaceutical and licensing areas. We are pleased with the support and enthusiasm of a number of new, recognized institutional healthcare investors who participated in this financing, and thank our long term loyal stockholders for their continued strong support."

Pro-forma for the offering, Delcath has 25.2 million shares outstanding, 950,000 options (at a $4.69 weighted average strike price), and approximately 2.5 million warrants (at a $4.27 weighted average strike price). Including the proceeds from this offering, Delcath's adjusted cash position is approximately $20 million, and the company has no debt. Assuming exercise by their terms of all currently outstanding options and warrants, the company would have 28.6 million shares outstanding and would receive an additional $15 million in cash proceeds.

Delcath plans to update investors on the enrollment status of its clinical trials in the near future.

About Delcath Systems, Inc.
Delcath Systems is the developer of percutaneous perfusion technology for organ- or region-specific delivery of therapeutic and chemotherapeutic agents. The Delcath System is currently being tested with the drug Melphalan in a Phase III trial of patients with metastatic ocular and cutaneous melanoma in the liver, and a Phase II trial of patients with primary liver cancers and metastatic tumors in the liver from neuroendocrine cancers and adenocarcinomas, as well as patients with melanoma who previously received isolated perfusion. The Company's intellectual property portfolio currently consists of 18 patents on a worldwide basis including the U.S., Europe, Asia and Canada. For more information, please visit the Company's website www.delcath.com.