Celsion Corporation
Aug 8, 2005

Celsion Corporation Reports Second Quarter 2005 Financial Results

Company Reports Revenue of $2.9 Million for Quarter. Up 53% over First Quarter

COLUMBIA, Md.--(BUSINESS WIRE)--Aug. 8, 2005--CELSION CORPORATION (AMEX:CLN) today announced financial results for its second quarter ended June 30, 2005. The Company reported revenue of $2.9 million for the quarter, compared to $0.4 million for the second quarter of 2004. Revenue increased 53% over first quarter 2005 revenue of $1.9.

The Company recorded a net loss for the second quarter of $2.6 million, or $0.01 per basic and diluted share, compared to a net loss of $1.7 million or $0.01 per basic and diluted share for the comparable quarter in 2004. The increase in the net loss for the quarter was primarily due to non cash adjustments to stock related compensation resulting from the change in the stock price versus the comparable period.

Revenue for the six months ended June 30, 2005 was $4.8 million compared to $0.5 million in the comparable period in 2004. Net loss for the six months was $5.0 million, or $0.03 per basic and diluted share, compared to $7.8 million, or $0.05 per basic and diluted share in the first half of 2004

Dr. Lawrence Olanoff, Celsion's Chief Executive Officer, commented, "Having come on board as CEO at the end of July, I am pleased with the progress this business has made, reflected in the results for this quarter and for the year to date. Prolieve continues to perform very well and is exceeding expectations. We are also making good progress on our liver cancer Phase I study for ThermoDox in combination with radio frequency ablation."

Celsion has research, license or commercialization agreements with leading institutions such as the National Institutes of Health, Duke University Medical Center, Massachusetts Institute of Technology, Harbor UCLA Medical Center, Montefiore Medical Center and Memorial Sloan-Kettering Cancer Center in New York City, Roswell Park Cancer Institute in Buffalo, New York, and Duke University. For more information on Celsion, visit our website: http://www.celsion.com.

Celsion wishes to inform readers that forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, unforeseen changes in the course of research and development activities and in clinical trials by others; possible acquisitions of other technologies, 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.


                          Celsion Corporation
                  Condensed Statements of Operations
               (in thousands, except per share amounts)
                              (Unaudited)

                    Three Months Ended          Six Months Ended
                         June 30                     June 30
               --------------------------  --------------------------
                   2004          2005          2004          2005
               ------------  ------------  ------------  ------------

Revenues       $        443  $      2,896  $        543  $      4,767
Cost of Sales           349         1,926           424         3,199
               ------------  ------------  ------------  ------------
Gross Margin             94           970           119         1,568
               ------------  ------------  ------------  ------------

Operating
 Expenses
 Research &
  development         1,386         2,485         5,973         4,704
 General &
  Administrative        367         1,072         1,936         1,838
               ------------  ------------  ------------  ------------
   Total
    Operating
    Expenses          1,753         3,557         7,909         6,542
               ------------  ------------  ------------  ------------

Loss from
 Operations          (1,659)       (2,587)       (7,790)       (4,974)

Other
 Income/(Expense)
 License fee
  amortization          143           143           191           286
 Interest income         59            64           100           125
 Loss from
  investment in
  Celsion China
  Ltd                    14            24            38            21
               ------------  ------------  ------------  ------------

Net loss before
 income taxes        (1,471)       (2,404)       (7,537)       (4,584)

Income taxes              -             -             -             -
               ------------  ------------  ------------  ------------

Net loss       $     (1,471) $     (2,404) $     (7,537) $     (4,584)
               ============  ============  ============  ============

Net loss per
 common share
 (basic and
 diluted)      $      (0.01) $      (0.01) $      (0.05) $      (0.03)
               ============  ============  ============  ============

Weighted
 average shares
 outstanding    160,302,355   160,898,206   156,764,532   160,850,846
               ============  ============  ============  ============



                          Celsion Corporation
                       Condensed Balance Sheets
                            (in thousands)

                                            December 31      June 30
                                           ---------------------------
                                               2004            2005
                                           ------------    -----------
                  ASSETS                    (Unaudited)    (Unaudited)
Current assets
    Cash and cash equivalents              $    10,484    $     5,316
    Accounts receivable                            783            962
    Inventory                                    2,202          3,950
    Prepaid expenses                               679            620
                                           ------------   ------------
    Total current assets                        14,148         10,848
Property and equipment, net                        682            615
Investment in Celsion China, Ltd.                  108             64
Escrow account - license fee                     2,007          2,023
Other assets                                       107             72
                                           ------------   ------------
    Total assets                           $    17,052    $    13,622
                                           ============   ============

   LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
    Accounts payable                       $       819    $     1,656
    Accrued expenses                               738          1,296
    Deferred income                                571            571
                                           ------------   ------------
    Total current liabilities                    2,128          3,523
Deferred revenue                                 2,952          2,667
                                           ------------   ------------
    Total liabilities                            5,080          6,190
                                           ------------   ------------

Stockholders' equity
    Common stock                                 1,608          1,609
    Additional paid-in capital                  84,581         84,648
    Accumulated deficit                        (74,217)       (78,825)
                                           ------------   ------------
    Total stockholders' equity                  11,972          7,432
                                           ------------   ------------

    Total liabilities and stockholders'
     equity                                $    17,052    $    13,622
                                           ============   ============

    CONTACT: Celsion Corporation
             Tony Deasey, 410-290-5390
             tony@celsion.com
                 or
             Financial Relations Board
             General Info:
             Marilynn Meek, 212-827-3773
             mmeek@financialrelationsboard.com
                 or
             Investor Info:
             Susan Garland, 212-827-3775
             sgarland@financialrelationsboard.com

    SOURCE: Celsion Corporation