Mesoblast Limited (ASX:MSB) US Asssociate Company Angioblast Closes A$10 Million Equity-Based Financing

Melbourne, Aug 25, 2009 AEST (ABN Newswire) - Mesoblast Limited (ASX:MSB)(PINK:MBLTY) today announced that its United States-based associate company Angioblast Systems Inc. has closed a A$10 million equity-based financing from institutional and sophisticated investors. New investors oversubscribed the financing, with A$3 million coming from existing Angioblast shareholders.

The capital was raised by way of non-redeemable convertible securities that will convert into common shares at the time of Angioblast's next financing event, defined as an Initial Public Offering, Merger and Acquisition, or private equity round of at least A$10 million. Mesoblast will retain its 38.4% equity in Angioblast until at least the next financing event, at which time it may seek to maintain or increase its shareholding.

In view of Angioblast's successful capital raising, Mesoblast's Board of Directors has decided that Mesoblast does not need to participate in the current financing round. Mesoblast will allocate an increased portion of its A$16.5 million existing funds towards a major new orthopedic clinical application during the course of the current financial year.

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