SOURCE: Living Cell Technologies

April 29, 2008 23:35 ET

Living Cell Technologies Enhanced Cash Position -- Appendix 4C Quarterly Report

MELBOURNE, AUSTRALIA and AUCKLAND, NEW ZEALAND--(Marketwire - April 29, 2008) - Living Cell Technologies Limited (ASX: LCT) (PINKSHEETS: LVCLY) today announced that the cash balance at the end of the quarter to March 31st 2008 was $12,689,973 compared to $7,643,560 at the end of the previous quarter, to December 31st 2007.

The $5,046,413 increase in cash (or 66 percent improvement) was primarily due to the capital placement of US$6.0 million, as announced on March 19th 2008. Total proceeds from the issue of shares in the quarter totaled $7,434,782. The series of capital placements over the last 6 months have significantly improved the cash position of LCT.

In the last quarter the company has also increased share capital by a further $2 million and reduced debt at the same time, with the conversion of the convertible notes issued to US based investors in June 2006, as well as settling accrued interest by way of issuing shares, as approved by shareholders at the general meeting held on March 7th 2008.

CFO of LCT Richard Justice said, "This continued support from the global investment community will allow us to commence expansion of our production and manufacturing capabilities as planned for 2008."

About Living Cell Technologies:

Living Cell is developing cell-based products to treat life threatening human diseases. The Company owns a biocertified pig herd that it uses as a source of cells for treating diabetes and neurological disorders. For patients with Type 1 diabetes, the Company transplants microencapsulated islet cells so that near-normal blood glucose levels may be achieved without the need for administration of insulin or at significantly reduced levels. The company entered clinical trials for its diabetes product in 2007. For the treatment of Huntington's disease and other neurological disorders, the company transplants microencapsulated choroid plexus cells that deliver beneficial proteins and neurotrophic factors to the brain. Living Cell's technology enables healthy living cells to be injected into patients to replace or repair damaged tissue without requiring the use of immunosuppressive drugs to prevent rejection. Living Cell also offers medical-grade porcine-derived products for the repair and replacement of damaged tissues, as well as for research and other purposes.

LCT Disclaimer

This document contains certain forward-looking statements, relating to LCT's business, which can be identified by the use of forward-looking terminology such as "promising," "plans," "anticipated," "will," "project," "believe," "forecast," "expected," "estimated," "targeting," "aiming," "set to," "potential," "seeking to," "goal," "could provide," "intends," "is being developed," "could be," "on track," or similar expressions, or by express or implied discussions regarding potential filings or marketing approvals, or potential future sales of product candidates. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no assurance that any existing or future regulatory filings will satisfy the FDA's and other health authorities' requirements regarding any one or more product candidates nor can there be any assurance that such product candidates will be approved by any health authorities for sale in any market or that they will reach any particular level of sales. In particular, management's expectations regarding the approval and commercialization of the product candidates could be affected by, among other things, unexpected clinical trial results, including additional analysis of existing clinical data, and new clinical data; unexpected regulatory actions or delays, or government regulation generally; our ability to obtain or maintain patent or other proprietary intellectual property protection; competition in general; government, industry, and general public pricing pressures; and additional factors that involve significant risks and uncertainties about our products, product candidates, financial results and business prospects. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. LCT is providing this information as of April 30 2008, and does not assume any obligation to update any forward-looking statements contained in this document as a result of new information, future events or developments or otherwise.

                                                        Rule 4.7B
                               Appendix 4C

                            Quarterly report
                          for entities admitted
                       on the basis of commitments

Introduced 31/3/2000.  Amended 30/9/2001, 24/10/2005.

Name of entity
Living Cell Technologies Limited

ABN                                   Quarter ended ("current quarter")
14 104 028 042                        31 March 2008

Consolidated statement of cash flows

                                               Current        Year to date
Cash flows related to operating                quarter         (9months)
 activities                                      $A              $A
                                            --------------  --------------
1.1 Receipts from customers                            144             492

1.2 Payments for (a) staff costs                  (103,636)       (316,624)
                 (b) advertising and
                     marketing                     (33,514)        (58,962)
                 (c) research and
                     development                  (470,535)     (1,302,959)

                 (d) leased assets                  (7,910)        (15,797)
                 (e) other working
                     capital                    (1,758,115)     (3,675,804)

1.3 Dividends received                                                 416
1.4 Interest and other items of a similar
 nature received                                    45,305          83,565
1.5 Interest and other costs of finance
 paid                                                 (593)         (5,311)
1.6 Income taxes paid                                    0               0
1.7 Other - Government Grants received             209,194         617,739
                                            --------------  --------------

 Net operating cash flows                       (2,119,660)     (4,673,245)
                                            --------------  --------------

                                                Current      Year to date
                                              quarter $A     (6months) $A
                                            --------------  --------------
1.8 Net operating cash flows (carried
    forward)                                    (2,119,660)     (4,673,245)
                                            --------------  --------------

 Cash flows related to investing activities
1.9 Payment for acquisition of:
      (a)  businesses (item 5)
      (b)  equity investments
      (c)  intellectual property
      (d)  physical non-current assets            (98,453)        (179,790)
      (e)  other non-current assets

1.10  Proceeds from disposal of:                        0           18,844
      (a)  businesses (item 5)
      (b)  equity investments
      (c)  intellectual property
      (d)  physical non-current assets
      (e)  other non-current assets

1.11 Loans to other entities
1.12 Loans repaid by other entities
1.13 Other (provide details if material)
                                            --------------  --------------

 Net investing cash flows                          (98,453)       (160,946)
                                            --------------  --------------
1.14 Total operating and investing cash
     flows                                      (2,218,113)     (4,834,191)
                                            --------------  --------------

Cash flows related to financing activities
1.15 Proceeds from issues of shares,
 options, etc.                                   7,434,782      15,731,090
1.16 Proceeds from sale of forfeited shares
1.17 Proceeds from borrowings
1.18 Repayment of borrowings
1.19 Dividends paid
1.20 Other (payment of share capital
 raising costs)                                   (170,256)       (656,694)
                                            --------------  --------------
      Net financing cash flows                   7,264,526      15,074,396
                                            --------------  --------------

 Net increase (decrease) in cash held            5,046,413      10,240,205

1.21 Cash at beginning of quarter/year to
 date                                            7,643,560       2,449,768
1.22 Exchange rate adjustments to item 1.20
                                            --------------  --------------

1.23 Cash at end of quarter                     12,689,973      12,689,973
                                            --------------  --------------

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related

                                                           Current quarter
1.24 Aggregate amount of payments to the parties included
     in item 1.2                                           $       529,761
1.25 Aggregate amount of loans to the parties included in
     item 1.11                                             $             0

1.26 Explanation necessary for an understanding of the
     New Zealand directors salaries & fees (1 non
      executive, 2 executive directors)                    $       373,559
     US Director's fees (1 non executive director)         $        58,429
     Australian directors' fees (2 non executive
      directors)                                           $        97,772

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which
    have had a material effect on consolidated assets and
    liabilities but did not involve cash flows


2.2 Details of outlays made by other entities to establish or
    increase their share in businesses in which the reporting
    entity has an interest


Financing facilities available

Add notes as necessary for an understanding of the position.
(See AASB 1026 paragraph 12.2).

                                            Amount available  Amount used
                                                  $A               $A
                                            --------------- ---------------
3.1 Loan facilities
                                            --------------- ---------------
3.2 Credit standby arrangements
                                            --------------- ---------------

Reconciliation of cash at the end of the
 quarter (as shown in the consolidated
 statement of cash flows) to the related        Current        Previous
 items in the accounts is as follows.           quarter         quarter
                                                   $A             $A
                                            --------------- ---------------
4.1 Cash on hand and at bank                      1,629,873       7,643,560
                                            --------------- ---------------
4.2 Deposits at call                             11,060,100               0
                                            --------------- ---------------
4.3 Bank overdraft
                                            --------------- ---------------
4.4 Other (provide details)
                                            --------------- ---------------
     Total: cash at end of quarter (item
      1.23)                                      12,689,973       7,643,560
                                            --------------- ---------------

Acquisitions and disposals of business

                                              Acquisitions     Disposals
                                             (Item 1.9(a))   (Item 1.10(a))
                                            --------------- ---------------
5.1 Name of entity
                                            --------------- ---------------
5.2 Place of incorporation or registration
                                            --------------- ---------------
5.3 Consideration foracquisition or disposal
                                            --------------- ---------------
5.4 Total net assets
                                            --------------- ---------------
5.5 Nature of business
                                            --------------- ---------------

Compliance statement

1   This statement has been prepared under accounting policies which comply
    with accounting standards as defined in the Corporations Act (except to
    the extent that information is not required because of note 2) or other
    standards acceptable to ASX.

2   This statement does /does not* (delete one) give a true and fair view
    of the matters disclosed.

Sign here:  ................................      Date: ..................
            (Director/Company secretary)

Print name:     ...................................


1.  The quarterly report provides a basis for informing the market how the
    entity's activities have been financed for the past quarter and the
    effect on its cash position. An entity wanting to disclose additional
    information is encouraged to do so, in a note or notes attached to
    this report.

2.  The definitions in, and provisions of, AASB 1026: Statement of Cash
    Flows apply to this report except for the paragraphs of the Standard
    set out below.

    --  6.2 - reconciliation of cash flows arising from operating
        activities to operating profit or loss
    --  9.2 - itemised disclosure relating to acquisitions
    --  9.4 - itemised disclosure relating to disposals
    --  12.1(a) - policy for classification of cash items
    --  12.3    - disclosure of restrictions on use of cash
    --  13.1    - comparative information

3.  Accounting Standards. ASX will accept, for example, the use of
    International Accounting Standards for foreign entities. If the
    Standards used do not address a topic, the Australian standard on
    that topic (if any) must be complied with.