EXHIBIT 1



XOMA Contacts           Investor Contacts                  Media Contacts
Peter B. Davis          Lippert/Heilshorn & Associates     Elissa Grabowski
Ellen M. Martin         Bruce Voss (bvoss@lhai.com)        (egrabowski@lhai.com)
(510) 644-1170          Bonnie Feldman                     (212) 838-3777
                        (bfeldman@lhai.com)
                        (310) 691-7100









XOMA Completes $43 Million Common Share Financing
Berkeley, CA - June 26, 2001 -- XOMA Ltd. (Nasdaq: XOMA) today announced it has
agreed to sell three million common shares in an offering underwritten by U.S.
Bancorp Piper Jaffray, CIBC World Markets, Adams, Harkness & Hill and Arnhold &
S. Bleichroeder, Inc., subject to customary closing conditions, for net proceeds
after expenses and fees of approximately $43.3 million.

"Our objective was to secure sufficient funding to meet our projected needs with
a prudent reserve through our currently anticipated timeline for the
commercialization of Xanelim," said Peter B. Davis. "We were pleased that the
demand for XOMA shares enabled us to meet that objective."

XOMA develops and manufactures antibody and other protein-derived
biopharmaceuticals for disease targets that include cancer, immunological and
inflammatory disorders and infectious diseases. Late-stage programs include a
collaboration with Genentech, Inc. to develop the anti-CD11a antibody product
for psoriasis (Phase III) and kidney transplant rejection (Phase I/II), and an
agreement with the Baxter Healthcare Corporation to develop NEUPREX(R) (a
systemic formulation of rBPI-21) for multiple indications (Phase II). Earlier
stage programs include: ING-1, a Human Engineered(TM) antibody in Phase I
studies in adenocarcinoma patients; and antibody, protein and peptide compounds
to treat autoimmune diseases, immunological cancers, infections and retinal
disorders. For more information about XOMA's pipeline and activities, please
visit XOMA's web site at www.xoma.com.

Statements made in this press release related to the sufficiency of the
Company's cash position, timing of clinical trials, the FDA regulatory process,
collaborative relationships, other aspects of product development, or that
otherwise relate to future periods, are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These statements are based on assumptions that
may not prove accurate. Actual results could differ materially from those
anticipated due to certain risks inherent in the biotechnology industry and for
companies engaged in the development of new products in a regulated market.
These risks, including those related to the timing or results of pending or
future





clinical trials, changes in the status of the Company's collaborative
relationships, uncertainties regarding the legal standards applicable to
biotechnology patents, and actions by the U.S. Food and Drug Administration or
the U.S. Patent and Trademark Office, are discussed in the Company's most recent
annual report on Form 10-K and in other SEC filings. Consider such risks
carefully in evaluating XOMA's prospects.