MESOBLAST LTD — Earnings Release 2011

Aug 23, 2011

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Mesoblast in Position of Considerable Strength

Melbourne, Australia; 24 August 2011 : Regenerative medicine company, Mesoblast Limited (ASX: MSB; OTC ADR: MBLTY), today provided its full year financial results. The company stated that it had substantial funds of $263.2 million at 30 June 2011. Mesoblast recorded revenue and other income of $120.9 million and a profit before tax of $92.2 million.

Mesoblast Chairman, Mr Brian Jamieson, said that Mesoblast was in a position of considerable strength after securing its financial future.

“With substantial cash reserves, we are able to continue the strong pace of commercialization of our proprietary adult Mesenchymal Precursor Cell (MPC) products across a broad range of diseases with major unmet clinical needs,” he said.

The key financial highlights of the 2011 year were:

• Acquired 100% of Angioblast and entire intellectual property for MPCs

• Executed a strategic alliance with Cephalon Inc., a major global biopharmaceutical company, covering cardiovascular, neurologic and bone marrow products, and

• Cash flow of $263M following receipt of upfront fee and equity placement to Cephalon

The key operational highlights of the 2011 year were:

• Strategic expansion of the cardiovascular franchise to cover congestive heart failure, heart attacks and chronic angina

• Completion of our congestive heart failure Phase 2 trial, and its selection for special presentation at the American Heart Association 2011 annual meeting

• Commencement of our first Phase 3 trial, for bone marrow transplantation

• Expansion of spinal franchise with the commencement of our degenerative disc repair Phase 2 trial to complement ongoing spinal fusion Phase 2 trials, and

• Development of intravenous product for systemic diseases, such as Type 2 diabetes and various inflammatory conditions.

Mesoblast Limited

Mesoblast Limited (ASX: MSB; OTC ADR: MBLTY) is a world leader in the development, manufacture, and commercialization of biologic products for the broad field of regenerative medicine. Mesoblast has the worldwide exclusive rights to a series of patents and technologies developed over more than 10 years relating to the identification, extraction, culture and uses of adult Mesenchymal Precursor Cells (MPCs). www.mesoblast.com

For further information, please contact:

Julie Meldrum Corporate Communications Director

T: +613 9639 6036

• E: julie.meldrum@mesoblast.com

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