Windtree Therapeutics, Inc. (the “ Company”) announced today that it has received the second installment of $1.3 million under a Loan Agreement dated as of August 14, 2017 (the “Loan Agreement ” ) with Lee’s Pharmaceutical (HK) Ltd. ( “ Lee’s”). As previously announced in a press release and in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission (“SEC”) on August 18, 2017 (“August 18 Form 8-K”), Lee’s agreed to lend the Company up to $3.9 million, payable at Lee’s sole discretion in three equal installments of $1.3 million. The Company received the initial installment on August 15, 2017 and expects to receive the third installment on October 10, 2017. The proceeds are being used to support the Company’s AEROSURF ® development activities and sustain its operations through October 31, 2017, while the parties negotiate a potential share purchase agreement and related agreements.

As of June 30, 2017 the Company had cash and cash equivalents of $2.5 million. As of September 11, 2017, after receipt of the first two advances under the Loan Agreement, the Company has cash and cash equivalents of approximately $2.9 million and currently anticipates that, assuming receipt of the third and final installment under the Loan Agreement, and before any additional financings, including under a share purchase agreement with Lee’s, if completed, it expects to have sufficient cash resources to fund its operations through approximately November 2017.

The foregoing description of the Loan Agreement do es not purport to be complete and is qualified in its entirety by reference to the agreement itself, a copy of which is attached as Exhibit 10.1 to the August 18 Form 8-K. The Loan Agreement was filed to provide investors and the Company’s stockholders with information regarding the terms thereof and in accordance with applicable rules and regulations of the SEC. Pursuant to the Loan Agreement, each of the parties thereto made customary representations, warranties and covenants and agreed to indemnify each other for certain losses arising out of breaches of such representations, warranties, covenants and other specified matters. The representations, warranties and covenants were made by the parties to and solely for the benefit of each other and any expressly intended third party beneficiaries in the context of all of the terms and conditions of the Loan Agreement and related agreements in the context of the specific relationship between the parties. Accordingly, investors and stockholders should not rely on the representations, warranties and covenants. Furthermore, investors and stockholders should not rely on the representations, warranties and covenants as characterizations of the actual state of facts or continuing intentions of the parties, since they were only made as of the date of the Loan Agreement. Information concerning the subject matter of such representations, warranties and covenants may change after the date of the agreements, which subsequent information may or may not be fully reflected in the Company’s reports or other filings with the Commission.

Cautionary Note Regarding Forward-looking Statements:

To the extent that statements in this Current Report on Form 8-K are not strictly historical, including statements as to business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, future collaboration agreements, the success of the Company ’s product development or otherwise as to future events, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this Current Report are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made. Such risks and others are further described in the Company’s filings with the Securities and Exchange Commission including the most recent reports on Forms 10-K, 10-Q and 8-K, and any amendments thereto.