EXHIBIT 99.1

                       [VION PHARMACEUTICALS, INC. LOGO]




                 COMPANY CONTACT:         VION PHARMACEUTICALS, INC.
                                          Alan Kessman, Chief Executive Officer
                                          Howard B. Johnson, President and CFO
                                          (203) 498-4210


        VION REPORTS 2006 SECOND QUARTER AND SIX MONTH FINANCIAL RESULTS

NEW HAVEN, CT, AUGUST 8, 2006 - VION PHARMACEUTICALS, INC. (NASDAQ CAPITAL
MARKET: VION) today announced results for the three-month and six-month periods
ended June 30, 2006.

The Company reported a net loss of $6.9 million, or $0.10 per share, for the
three-month period ended June 30, 2006, compared to a net loss of $5.1 million,
or $0.08 per share, for the same period in 2005. Weighted-average common shares
outstanding for the three months ended June 30, 2006 and 2005 were 66.2 million
and 65.9 million, respectively.

For the six-month period ended June 30, 2006, the net loss was $12.9 million, or
$0.20 per share, compared to a net loss of $9.7 million, or $0.15 per share, for
the same period in 2005. Weighted-average common shares outstanding for the six
months ended June 30, 2006 and 2005 were 66.1 million and 64.3 million,
respectively.

Total operating expenses were $7.4 million and $5.6 million for the three months
ended June 30, 2006 and 2005, respectively, and $13.9 million and $10.5 million
for the six months ended June 30, 2006 and 2005, respectively. The increase in
operating expenses was primarily due to higher total research and development
expenses resulting from (i) late-stage clinical development of Cloretazine(R)
(VNP40101M), including higher spending for clinical trials and development costs
in support of a potential registration filing, as well as (ii) preclinical
development costs related to the Company's preclinical anticancer agent,
VNP40541, and (iii) stock-based compensation expense. In addition, general and
administrative expenses were higher than the previous period, primarily due to
stock-based compensation expense.

In the quarter, the Company continued to accrue patients to its Phase III trial
of Cloretazine(R) (VNP40101M) in combination with Ara-C in patients with
relapsed acute myelogenous leukemia (AML). The Company also initiated a pivotal
Phase II trial of Cloretazine(R) (VNP40101M) in elderly patients with previously
untreated de novo poor-risk AML. In June, the Company submitted an
Investigational New Drug Application (IND) with the U.S. Food and Drug
Administration (FDA) for its hypoxia-selective anticancer agent, VNP40541. Based
on







discussions with the FDA related to its initial filing, the Company will seek
to provide additional information to the FDA and resubmit the IND when this
information is available.

Alan Kessman, Chief Executive Officer, said, "Vion continued to make progress
this quarter towards our goal of product registration for Cloretazine(R)
(VNP40101M). We now have two ongoing pivotal trials of Cloretazine(R)
(VNP40101M) in AML. We will work hard to provide the FDA with the requested
additional information for VNP40541 in a timely fashion so that we can move
forward with the clinical development of our third anticancer agent."

The Company reported ending the quarter with $41.4 million in cash and cash
equivalents. Based on revisions to its operating plan, the Company expects its
cash resources will be sufficient to fund its operations through the fourth
quarter of 2007. The revisions to the operating plan include: (i) a reduction in
the costs of three planned trials of Cloretazine(R) (VNP40101M) and the
elimination of two planned investigator-sponsored trials of Cloretazine(R)
(VNP40101M); (ii) strict control of the timing and amount of pre-launch
marketing and commercialization expenses for Cloretazine(R) (VNP40101M); (iii) a
delay in the initiation of a Phase I trial of VNP40541; (iv) a reduction in the
preclinical development of the hydrazone compounds; and (v) an adjustment to the
timing of the plan's cash flow to reflect the latest estimated payment schedules
for the two pivotal trials of Cloretazine(R) (VNP40101M).

Alan Kessman, Chief Executive Officer, commented, "We are pleased to say that,
based on revisions to our operating plan and current assumptions, we believe
that our cash position funds the Company through 2007." Mr. Kessman added, "We
expect to be able to extend the use of our cash resources while maintaining a
clinical development plan for Cloretazine(R) (VNP40101M) consisting of some
additional future trials to complement our two existing pivotal trials and three
other ongoing trials. There is also no change assumed to the expected timing of
accrual in the two pivotal trials. Based on the current accrual plan, we
continue to be on track to complete accrual to our two pivotal trials in 2007."

Vion Pharmaceuticals, Inc. is committed to extending the lives and improving the
quality of life of cancer patients worldwide by developing and commercializing
innovative cancer therapeutics. Vion has two agents in clinical trials.
Cloretazine(R) (VNP40101M), a unique alkylating agent, is being evaluated in:
(i) a Phase III trial in combination with cytarabine in relapsed acute
myelogenous leukemia and (ii) a Phase II pivotal trial as a single agent in
elderly patients with previously untreated de novo poor-risk acute myelogenous
leukemia. Additional trials of Cloretazine(R) (VNP40101M) as a single agent in
pediatric brain tumors, small cell lung cancer, and in combination with
temozolomide in hematologic malignancies, are also underway. Triapine(R), a
potent inhibitor of a key step in DNA synthesis, is being evaluated in clinical
trials sponsored by the National Cancer Institute. In preclinical studies, Vion
is also evaluating VNP40541, a hypoxia-selective compound. The Company also is
seeking development partners for TAPET(R), its modified Salmonella vector used
to deliver anticancer agents directly to tumors. For additional information on
Vion and its product development programs, visit the Company's Internet web site
at www.vionpharm.com.

This news release contains forward-looking statements. Such statements are
subject to certain risk factors which may cause Vion's plans to differ or
results to vary from those expected, including Vion's ability to secure external
sources of funding to continue its operations, the inability to access capital
and funding on favorable terms, continued operating losses and the inability to
continue operations as a result, its dependence on regulatory approval for its
products, delayed or unfavorable results of drug trials, the possibility that
favorable results of earlier clinical trials are not predictive of safety and
efficacy results in later clinical trials, the need for additional research and
testing, and a variety of other risks set forth from time to time in Vion's
filings with the Securities and Exchange Commission, including but not limited
to the risks discussed in Vion's Annual Report on Form 10-K for the year ended
December










31, 2005. Except in special circumstances in which a duty to update arises under
law when prior disclosure becomes materially misleading in light of subsequent
events, Vion does not intend to update any of these forward-looking statements
to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.



                         --Financial Statements Follow--











                           VION PHARMACEUTICALS, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)


                                                               THREE MONTHS ENDED             SIX MONTHS ENDED
                                                                    JUNE 30,                      JUNE 30,
(In thousands, except per share data)                            2006      2005               2006       2005
----------------------------------------------------------------------------------------------------------------------

Revenues                                                              $ 1          $ 7             $ 10          $ 12

Operating expenses:
     Clinical trials                                                3,563        2,626            6,698         5,675
     Other research and development                                 2,233        1,958            4,178         3,103
                                                           -----------------------------------------------------------
         Total research and development                             5,796        4,584           10,876         8,778
     General and administrative                                     1,053          981            2,153         1,672
     Marketing                                                        582           --              891            --
                                                           -----------------------------------------------------------
        Total operating expenses                                    7,431        5,565           13,920        10,450
                                                           -----------------------------------------------------------

Loss from operations                                              (7,430)      (5,558)         (13,910)      (10,438)

     Interest income                                                  526          454            1,058           795
     Other income (expense), net                                     (18)            8             (28)             6
                                                           -----------------------------------------------------------
Loss before income taxes                                          (6,922)      (5,096)         (12,880)       (9,637)

     Income tax provision                                              11           11               24            22
                                                           -----------------------------------------------------------
Net loss                                                        $ (6,933)    $ (5,107)       $ (12,904)     $ (9,659)
                                                           ===========================================================

Basic and diluted loss per share                                 $ (0.10)     $ (0.08)         $ (0.20)      $ (0.15)
                                                           ===========================================================

Weighted-average number of shares
    of common stock outstanding                                    66,158       65,932           66,134        64,298
                                                           ===========================================================




                                      CONDENSED CONSOLIDATED BALANCE SHEET DATA
                                                     (UNAUDITED)
                                                                                          JUNE 30,        DEC. 31,
(In thousands)                                                                               2006           2005
----------------------------------------------------------------------------------------------------------------------

Cash and cash equivalents                                                                     $ 41,415       $ 52,762
Total assets                                                                                    42,280         53,719
Total liabilities                                                                                5,544          5,080
Shareholders' equity                                                                            36,736         48,639
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