Celsion Obtains $1 Million Financing to Fund Phase One Clinicals of Its Breast Cancer and Benign Prostatic Hyperplasia Treatments.

COLUMBIA, Md.--(BW HealthWire)--Feb. 3, 1999--Celsion Corp. (OTC BB:CELN) today announced that it has completed a $1 million private placement to be used by the Company, among other things, to conduct phase one clinicals of its breast cancer and benign prostatic hyperplasia (BPH) treatment systems.

Phase one clinicals of the Company's breast cancer treatment system are planned to commence at Massachusetts General Hospital (MGH) during the spring of 1999.

The Company's heat cancer treatment system has Premarket Approval (PMA) from the U.S. Food and Drug Administration (FDA). The Company also recently received Investigational Device Exemption (IDE) approval from the FDA for its breast cancer treatment system, enabling Celsion to commence phase one clinicals to obtain a new "breast tumor ablation" indication of use within the existing PMA.

Phase one clinicals of the Company's BPH treatment system, which has FDA IDE approval, began at Montefiore Medical Center in November 1998. The study is expected to be completed in early 1999.

Celsion also reported that it plans at this time to redeem, if and when permitted, certain of the Company's outstanding warrants which could permit the Company to obtain additional funding for multiple-site phase two clinicals of both the breast cancer and BPH treatment systems in the U.S. and abroad. The Company noted that such action could raise an additional $1 to $3 million.

Celsion Corporation is a research and development company dedicated to commercializing medical treatment systems for cancer and BPH using focused heat delivered by patented microwave technology. Clinicals and further development of the Company's treatment systems are being conducted by leading institutions such as the Massachusetts Institute of Technology, Massachusetts General Hospital, Montefiore Medical Center, and Duke University.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, possible changes in cost of materials, expense items, capital expenditures, capital structure, and other financial items; introduction of new products and possible acquisitions of assets or businesses; possible actions by customers, suppliers, competitors, regulatory authorities; and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.