SOURCE: Living Cell Technologies

January 30, 2008 19:28 ET

Living Cell Technologies in Strong Cash Position to Accelerate Clinical Trial Program

MELBOURNE, AUSTRALIA and AUCKLAND, NEW ZEALAND--(Marketwire - January 30, 2008) - Living Cell Technologies Limited (ASX: LCT) (PINKSHEETS: LVCLY) today announced that the cash balance at the end of the quarter to 31st December 2007 was A$7,643,560, compared to A$1,246,366 at the end of the quarter to September 30th 2007. Operational cash flow at (A$1,388,660) was maintained at a comparable level to the (A$1,164,925) spent in the preceding quarter.

The A$6,397,194 increase in cash (or 513 percent improvement) was primarily due to the two capital placements invested into LCT totaling A$8,296,308 as announced by the Company on October 3 and 30, 2007. A further US$6.0m is expected to be invested into the Company by Palmert Members, as announced on January 9, 2007. Furthermore, the convertible notes issued in June 2006 are being converted to shares and therefore LCT will not be required to pay the A$2m that was owed on those notes, as announced on January 25, 2008.

Richard Justice, Chief Financial Officer, said: "The company's significantly improved cash balance places LCT in a stronger financial position. We are very pleased and encouraged by the level of confidence that global investors have demonstrated in LCT during recent weeks. Our current funding allows us to complete the current Russian clinical trial and it will also enable us to commence a clinical trial in New Zealand, following approval from the New Zealand Health Minister."

Dr. Paul Tan, Chief Executive Officer of LCT, said, "Apart from continuing and expanding our clinical trials, a further focus for 2008 will be the expansion of our production and manufacturing capabilities, as well as the commencement of a targeted and strategic commercialisation program for our technology."

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 January 31, 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.