U.S. Government Grants Awarded for Further Development of Adult Stem Cell Products

MELBOURNE, Australia, November 8, 2010 - Regenerative medicine company, Mesoblast Limited (ASX: MSB; USADR:
MBLTY), today announced that its United States associate company, Angioblast
Systems, has been awarded US$1.2 million in grants under the United States
Government's Qualifying Therapeutic Discovery Project (QTDP) program.

Angioblast received the maximum grant amount awarded for each of the five
projects that were eligible for QTDP funding. The projects, selected jointly
by the United States Treasury Department and the Department of Health and
Human Services, relate to the company's adult stem cell products for
congestive heart failure, heart attack, oncology, eye and diabetes
indications.

"We are pleased to have received this cash award, and will use the funds
to advance our objectives for product commercialization," said Mesoblast
Chief Executive Professor Silviu Itescu.

The QTDP program was enacted as part of the Patient Protection and
Affordable Care Act of 2010 to provide tax credits to eligible companies in
order to encourage investments in new therapies for prevention or treatment
of acute and chronic diseases. Companies, such as Angioblast Systems, that
cannot currently use a tax credit were allowed to apply for a cash grant in
lieu of a tax credit.

To be eligible for the program, projects had to show reasonable potential
to result in new therapies to treat areas of unmet medical need, prevent,
detect, or treat chronic or acute disease and conditions, or reduce long-term
health care costs in the United States. Preference was given to projects that
showed the greatest potential to create and sustain (directly or indirectly)
high quality, high-paying jobs in the United States, and advance United
States competitiveness in the fields of life, biological, and medical
sciences.

"The award serves as further external recognition, in this case by the
United States Government, of the strength and promise of our adult stem cell
technology platform to deliver effective therapies for a range of conditions
currently in great medical need," said Professor Itescu.

About Mesoblast

Mesoblast Limited (ASX: MSB; USADR: MBLTY) is a world leader in
commercializing biologic products for the broad field of regenerative
medicine. Mesoblast has the worldwide exclusive rights for 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). www.mesoblast.com

    Contact:

    Julie Meldrum
    Mesoblast Limited
    +61-3-9639-6036
    julie.meldrum@mesoblast.com

Julie Meldrum of Mesoblast Limited, +61-3-9639-6036, julie.meldrum at mesoblast.com