Infinity provides guidance on anticipated pipeline and business goals for 2011

Infinity Pharmaceuticals, Inc. (Nasdaq:INFI) today provided guidance on its anticipated pipeline and business goals for 2011. Infinity begins the year with a broad pipeline of four drug candidates in clinical development and a fifth expected to enter the clinic during the year. The company also enters 2011 with approximately $345 million in committed capital. This financial foundation provides Infinity with cash runway into 2014 based on its current operating plan, and enables the company to advance its pipeline of innovative product candidates to key value inflection points without the need for additional financing.

"2010 was an important year for Infinity. We made significant progress advancing our diverse portfolio of product candidates, added considerable talent to our management team to enhance our late-stage clinical, medical affairs and commercial functions, and ended 2010 with substantial financial resources," stated Adelene Q. Perkins, president and chief executive officer of Infinity. "The strength of our pipeline, team and finances positions us beautifully to realize our goal of bringing important new medicines to patients, thereby creating significant value for shareholders."

2011 Program Goals

Infinity anticipates achieving the following development milestones in 2011:

IPI-926: An oral molecule that targets the Hedgehog pathway by inhibiting Smoothened

• Begin the Phase 2 portion of the combination study with Gemzar^® (gemcitabine) in patients with pancreatic cancer
• Present data from the Phase 1b portion of the pancreatic cancer study
• Begin additional Phase 2 studies
• Initiate a broad investigator sponsored trial program

IPI-504 (I.V.) and IPI-493 (oral): Proprietary Hsp90 chaperone inhibitors

• Present Phase 1 data of IPI-504 in combination with Taxotere^® (docetaxel) in patients with solid tumors, including an expansion cohort in patients with non-small cell lung cancer
• Announce path forward for Hsp90 program

IPI-145: An oral delta/gamma-specific inhibitor of phosphoinositide-3-kinase

• Begin a Phase 1 study in the second half of 2011

IPI-940: An oral inhibitor of fatty acid amide hydrolase (FAAH)

• Complete transition activities to facilitate Phase 2 studies in pain by Purdue Pharmaceutical Products L.P.

Discovery

• Expand pipeline by naming a new development candidate

2011 Financial Guidance

Infinity enters 2011 with approximately $345 million in committed capital, which includes slightly over $100 million in cash and investments (unaudited), $195 million in committed research and development funding from Mundipharma International Corporation Ltd., and access to a $50 million line of credit from Purdue Pharma L.P.

Exclusive of any business development activities, Infinity anticipates a cash burn of $30 million to $40 million during 2011 and estimates a year-end cash and investments balance ranging from $60 million to $70 million. The anticipated year-end cash and investments balance does not include any amounts that Infinity may draw under the $50 million line of credit.

Infinity's financial foundation provides the company with cash runway into 2014 based on its current operating plan, enabling the company to advance its pipeline of innovative product candidates to key value inflection points without the need for additional financing.

Infinity to Present at J.P. Morgan 29^th Annual Healthcare Conference

Infinity will present at the J.P. Morgan 29^th Annual Healthcare Conference in San Francisco on Thursday, January 13, 2011 at 1:30 p.m. PST (4:30 p.m. EST). A live webcast of Infinity's presentation will be accessible on the "investors/media" section of the company's website, www.infi.com. The presentation will be archived for 30 days following the event.