Mesoblast Ltd ADR (MESO)

[SuperSquirrel]

Mesoblast Reports Strong Cash Position
After Angioblast Acquisition

Melbourne, Australia: 31 January 2011:Global regenerative medicine company, Mesoblast Limited (ASX: MSB; OTC ADR: MBLTY), today reported its quarterly cash position for the period ended 31 December 2010, with cash reserves of $140.6 million.

This flows directly from the recently completed acquisition of United States-based Angioblast Systems Inc. On 7 December 2010, Angioblast entered into a strategic alliance with global biopharmaceutical company Cephalon Inc. (Nasdaq: CEPH) to develop and commercialize adult stem cell therapeutics for degenerative conditions of the cardiovascular and central nervous systems, and for bone marrow transplantation in cancer patients. To gain commercial rights to Angioblast's products, Cephalon made an upfront payment to the company of US$100 million.

Mesoblast expects its cash position to be further strengthened following an Extraordinary General Meeting to be held on 9 February 2011 to consider an additional placement of Mesoblast shares to Cephalon.

About 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). More information - www.mesoblast.com

For further information, please contact:

Julie Meldrum
Corporate Communications Director
T: + 61 (0) 3 9639 6036
E: [e-mail]

For more information, please visit http://202.66.146.82/listco/au/mesoblast/halfyr/2011/int2qpress.pdf.