Press Releases

Melbourne, April 1, 2009 (ABN Newswire) - Mesoblast Limited (ASX:MSB)(PINK:MBLTY) has announced the successful closure of the equity raising that forms the funding package for the expansion of MSB's clinical programs focusing on bone and cartilage regenerative programs for spinal vertebral disc disease.

MSB closes equity raising

MSB has announced the successful closure of the equity raising that forms the funding package for the expansion of MSB's clinical programs focusing on bone and cartilage regenerative programs for spinal vertebral disc disease. The final price was A$0.72 per share. A total of 15.02m ordinary shares are to be issued to raise A$10.81m.

MSB's MPCs may address the gap in the market for cervical fusion

In July 2008, the US FDA issued a statement that the safety and effectiveness of Medtronic's rhBMP in the cervical spine had not been demonstrated and as a result these products were not approved by the FDA for this use. We estimate the anterior interbody cervical spine fusion market for BMPs is worth cUS$325m. As a result of the FDA decision, we believe there is currently no synthetic bone graft approved for anterior interbody cervical spine fusions. For the medium term, MSB's MPCs may address this gap in the market.

EPS decreases by 0.4cps in FY09F and by 0.6cps in FY10F

We have updated our healthcare comparables. As a result of our changes, our DCF-based valuation and 12-month target price for MSB have fallen 3.4% to A$1.40, and EPS decreases by 0.4cps in FY09F and by 0.6cps in FY10F.

For the Full Report please see below;

http://www.abnnewswire.net/media/en/docs/60422-ASX-RBS-10409.pdf

Contact

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