Mesoblast Limited (ASX:MSB) To Hold Extraordinary General Meeting On The Acquisition Of Angioblast Systems Inc.

Melbourne, Aug 23, 2010 AEST (ABN Newswire) - Dear Shareholder

On Wednesday 22 September 2010, Mesoblast Limited (ASX:MSB) (PINK:MBLTY) will hold an Extraordinary General Meeting of shareholders to consider a proposed acquisition of its United States-based associate company, Angioblast Systems Inc. This is a key event in your Company's evolution.

This strategic acquisition would enable Mesoblast to significantly broaden its product portfolio based on 100 per cent ownership of the intellectual property rights underpinning the entire Mesenchymal Precursor Cell (MPC) technology platform.

Fundamentally, it would transform Mesoblast from a biologics company focused on orthopaedic applications to a global leader in the regenerative medicine industry. Mesoblast shareholders would gain full commercial benefits from the breadth of applications, including cardiac, eye, diabetes and oncology.

It should be noted that the most advanced clinical programs using the proprietary "off-the-shelf" MPC adult stem cells are those conducted by Angioblast in the United States for congestive heart failure and bone marrow regeneration. The products for these conditions are therefore closest to United States Food and Drug Administration regulatory approvals and represent the nearest term and greatest revenue generating opportunities.

Bringing the technology platform and assets into one company would enable us to streamline corporate operations, strengthen the global leadership team, rationally allocate resources based on maximal return, and facilitate commercial partnering discussions. In particular, a single company with access to 100 per cent ownership of the technology platform would be greatly strengthened in its ability to establish strategic partnerships across a range of product indications.

To make an informed judgement on what the Mesoblast Board of Directors believe are fair and reasonable terms for the proposed Angioblast acquisition, we would suggest that you refer to the attached independent review of the proposed transaction conducted by Deloitte.

We are excited by the potential of this proposed acquisition to consolidate your Company's position as a global leader in the regenerative medicine industry. Your Board strongly recommends that you ratify the four resolutions that are detailed in the accompanying documents.

We look forward to seeing you at the EGM to actively endorse Mesoblast's advancement to the next critical level in its corporate maturity.

Yours sincerely

Brian Jamieson
Chairman

For the complete Mesoblast Limited Notice of Extraordinary General Meeting, please view the following link:

http://www.abnnewswire.net/media/en/docs/63574-ASX-MSB-340626.pdf

Contact

Brian Jamieson Chairman Mesoblast Limited Tel: +61-3-9639-6036 www.mesoblast.com