Mesoblast Limited's (ASX:MSB) Associate Company Angioblast Systems Secures New Capital

Melbourne, Aug 19, 2009 AEST (ABN Newswire) - Australia's regenerative medicine company, Mesoblast Limited (ASX:MSB)(PINK:MBLTY), today announced that institutional and sophisticated investors have made a minimum of A$7 million and up to a maximum of A$10 million equity-based investment in its United States associate company, Angioblast Systems Inc. Settlement formalities are expected to be completed in the next seven days.

Mesoblast's Board of Directors has welcomed Angioblast's successful funding by new investors as further third-party validation of Angioblast's underlying value proposition, underscoring the inherent value of Mesoblast's significant equity stake in the company.

Angioblast will use the proceeds from this raising to significantly advance its cardiovascular and other clinical programs towards Phase 3 trials. On the basis of continued positive results from its lead indications, Angioblast will seek to obtain additional funding for Phase 3 trials and product commercialisation needs via either an Initial Public Offering or alternative commercial transactions.

Together with Mesoblast's current cash reserves, both companies now have up to A$26.5 million in funds to allocate towards clinical development of the shared adult stem cell platform technology. This funding depth underpins the nature of potential strategic corporate partnerships for both companies.

Mesoblast Chairman Mr Brian Jamieson said: "We are delighted with the successful capital raising by Angioblast. As Angioblast continues to deliver clinical and commercial outcomes, we are confident that our significant equity investment in the company will continue to appreciate. We anticipate that this latest round of new capital will support the company through the next phase of its evolution that will serve to further crystallise Mesoblast's investment."

Specialist broking house, Lodge Corporate, assisted with the capital raising from Australian investors.

Contact

Julie Meldrum Corporate Communications Director Mesoblast Limited Tel: + 61-3-9639-6036 Mob: + 61-419-228-128 Email: julie.meldrum@mesoblast.com www.mesoblast.com