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   &lt;/div&gt;
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   &lt;/div&gt;
   &lt;div align="center" style="font-size: 10pt"&gt;&lt;b&gt;&lt;/b&gt;&lt;/div&gt;
   &lt;div align="center" style="font-size: 10pt"&gt;&lt;b&gt;&lt;/b&gt;&lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;1. BUSINESS, PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;i&gt;Business&lt;/i&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Dendreon Corporation (&amp;#8220;Dendreon&amp;#8221;, the &amp;#8220;Company&amp;#8221;, &amp;#8220;we&amp;#8221;, &amp;#8220;us&amp;#8221;, or &amp;#8220;our&amp;#8221;), a Delaware
   corporation, is a biotechnology company focused on the discovery, development and commercialization
   of novel therapeutics that may significantly improve cancer treatment options for patients. Our
   product portfolio includes active cellular immunotherapy and small molecule product candidates to
   treat a wide range of cancers.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;On April&amp;#160;29, 2010 (the &amp;#8220;Approval Date&amp;#8221;), the U.S. Food and Drug Administration (&amp;#8220;FDA&amp;#8221;)
   licensed PROVENGE&lt;sup style="font-size: 85%; vertical-align: text-top"&gt;&amp;#174;&lt;/sup&gt; (sipuleucel-T), our first in class autologous cellular immunotherapy for the
   treatment of asymptomatic and minimally symptomatic, metastatic, castrate-resistant
   (hormone-refractory) prostate cancer. Commercial sale of PROVENGE began in May&amp;#160;2010. Prostate
   cancer is the most common non-skin cancer among men in the United States, with over one million men
   currently diagnosed with the disease, and the second leading cause of cancer deaths in men in the
   United States. We own worldwide rights for PROVENGE.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;i&gt;Principles of Consolidation&lt;/i&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The consolidated financial statements for the three months ended March&amp;#160;31, 2011 include the
   accounts of Dendreon and its direct and indirect wholly-owned subsidiaries, Dendreon UK Ltd.,
   Dendreon Holdings, LLC, Dendreon Distribution, LLC and Dendreon Manufacturing, LLC. Dendreon UK and
   Dendreon Holdings are wholly-owned subsidiaries of the Company, and Dendreon Distribution and
   Dendreon Manufacturing are wholly-owned subsidiaries of Dendreon Holdings.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;All material intercompany transactions and balances have been eliminated in consolidation.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;i&gt;Basis of Presentation&lt;/i&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The accompanying unaudited financial statements reflect, in the opinion of management, all
   adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of
   our financial position, results of operations and cash flows for each period presented in
   accordance with U.S. generally accepted accounting principles for interim financial information and
   with the instructions to Form 10-Q and Article&amp;#160;10 of Regulation&amp;#160;S-X. Accordingly, information and
   disclosures normally included in financial statements prepared in accordance with U.S. generally
   accepted accounting principles have been condensed or omitted from the accompanying statements.
   These interim financial statements should be read in conjunction with the audited financial
   statements and related notes thereto, which are included in our Annual Report on Form 10-K for the
   year ended December&amp;#160;31, 2010 (the &amp;#8220;2010 Form 10-K&amp;#8221;). The accompanying financial information as of
   December&amp;#160;31, 2010 has been derived from audited financial statements. Operating results for the
   three month period ended March&amp;#160;31, 2011 are not necessarily indicative of future results that may
   be expected for the year ending December&amp;#160;31, 2011, or any other future period.
   &lt;/div&gt;
   &lt;/div&gt;
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