Mesoblast Completes A$170m Private Placement

Mesoblast Completes A$170m Private Placement

MELBOURNE, Australia, March 13, 2013 (GLOBE NEWSWIRE) -- Regenerative medicine
company Mesoblast Limited (ASX:MSB) (USOTC:MBLTY) today announced that it has
completed a private placement of its shares, raising A$170 million. Mesoblast
now has cash reserves of approximately A$332 million.

Under the placement, 26,970,979 fully paid ordinary shares were issued at
A$6.30 per share, a discount of 2.2 per cent to the closing price of the
company's shares on 1 March 2013. The total shares on issue have now increased
by 9.4 per cent to 314,811,301.

The shares were placed to a select group of existing strategic investors and
new United States and global institutional funds, including M & G Investment
Management and Capital Research.

As a result of the placement, Mesoblast's free float has increased by
approximately 16.5 percent, which may positively impact the Company's
weighting within the S &P/ASX 200 index.

In determining Mesoblast's free float under S &P/ASX methodology, strategic
shareholdings of Mesoblast alliance partner Teva Pharmaceutical Industries Ltd
and Mesoblast Chief Executive Silviu Itescu, both of which remain unchanged
post the placement, are not included.

The intended uses of these funds are for continued development of Mesoblast's
proprietary Mesenchymal Precursor Cell (MPCs) technology platform,
specifically:

-a Phase 3 clinical trial using MPCs for treatment of degenerative disease of
the lumbar spine

-new Phase 2 clinical trials to broaden the indications for intravenous
delivery of MPCs in the treatment of systemic inflammatory conditions

-optimization of MPC manufacturing processes and increased product inventory
staff and overheads.

Professor Itescu said: "Our strengthened financial position ensures that we
can drive our independent programs to commercial outcomes, particularly in the
areas of degenerative disease of the lumbar spine and in the treatment of
inflammatory and immune-mediated conditions."

Mesoblast Limited
Mesoblast Limited is a world leader in the development of biologic products
for the broad field of regenerative medicine. Mesoblast's patented Mesenchymal
Precursor Cell (MPC) technology is being developed for an extensive range of
major clinical diseases, including inflammatory and immunologic conditions of
the joints and lungs, diabetes and kidney disease, orthopedic spine
conditions, and cardiovascular disorders. www.mesoblast.com

This ASX announcement does not constitute an offer of shares for sale in the
United States, or to any person that is, or is acting for the account or
benefit of, any U.S. Person (as defined in Regulation S under the United
States Securities Act of 1933, as amended (the "Securities Act"))
("U.S. Person"), or in any jurisdiction in which such an offer would be
illegal. The Mesoblast shares under this placement have not been, and will not
be, registered under the Securities Act or the securities laws of any state or
other jurisdiction of the United States and may not be offered, sold or resold
in the United States (as defined in Regulation S under the Securities Act)
absent registration or an applicable exemption from the registration
requirements.

This ASX announcement includes "forward-looking statements" within the meaning
of securities laws of applicable jurisdictions. Forward-looking statements can
generally be identified by the use of forward-looking words such as "may,"
"will," "expect," "intend," "plan," "estimate," "anticipate," "believe,"
"continue," "objectives," "outlook," "guidance" or other similar words, and
include statements regarding certain plans, strategies and objectives of
management and expected financial performance. These forward- looking
statements involve known and unknown risks, uncertainties and other factors,
many of which are outside the control of Mesoblast, and its officers,
employees, agents or associates. Actual results, performance or achievements
may vary materially from any projections and forward-looking statements and
the assumptions on which those statements are based. Readers are cautioned not
to place undue reliance on forward-looking statements and Mesoblast assumes no
obligation to update such information.

CONTACT: Julie Meldrum
         Global Head of Corporate Communications
         Mesoblast Limited
         T: +613 96396036
         E: julie.meldrum@mesoblast.com
 
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