Celsion Corporation
May 11, 2005

Celsion Corporation Reports First Quarter 2005 Financial Results; Company Reports Revenue of $1.9 Million for Quarter

COLUMBIA, Md.--(BUSINESS WIRE)--May 11, 2005--CELSION CORPORATION (AMEX:CLN) today announced financial results for its first quarter ended March 31, 2005. The Company reported revenue of $1.9 million for the quarter, compared to $0.1 million for the first quarter of 2004. The net loss for the first quarter of $2.2 million, or $0.01 per basic and diluted share, compared to a net loss of $6.0 million, or $0.04 per basic and diluted share, for the comparable quarter in 2004.

Revenue of $1.9 million for the first quarter of 2005 represented an increase of 36% over revenue of $1.4 million for the Company's fourth quarter of 2004, ended December 31, 2004. Compared to the fourth quarter of 2004, Celsion reported a gross margin of 32%, up from 15% for the prior quarter, as a result of a higher proportion of sales being derived from catheter kits in the most recent period.

Dr. Augustine Cheung, Celsion's Founder, President and Chief Executive Officer, commented, "We are extremely pleased with our first quarter results. Prolieve is gaining traction in the marketplace. During the quarter, Boston Scientific placed 58 machines in service and, approximately 1,500 patients were treated using our Prolieve system. The improvement in gross margin is also encouraging and we expect this trend to continue as the year progresses."

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
                       Statements of Operations
               (in thousands, except per share amounts)


                                                Three Months Ended
                                                     March 31,
                                             -------------------------
                                                 2005         2004
                                             ------------ ------------
                                              (Unaudited)

Revenues                                     $     1,870  $       100
Cost of Sales                                      1,272           75
                                             ------------ ------------
Gross Margin                                         598           25
                                             ------------ ------------
Operating Expenses
     Research & development                        2,219        4,586
     General and administrative                      766        1,569
                                             ------------ ------------
           Total Operating Expenses                2,985        6,155
                                             ------------ ------------
Loss from Operations                              (2,387)      (6,130)

Other Income/(Expense)
     License fee amortization                        143           47
     Interest income                                  62           41
     Loss from investment in Celsion China
      Ltd.                                           (21)         (24)
                                             ------------ ------------
Net loss before income taxes                      (2,203)      (6,066)
Income taxes                                           -            -
                                             ------------ ------------
Net Income                                   $    (2,203) $    (6,066)
                                             ============ ============
Net loss per common share (basic and diluted)$     (0.01) $     (0.04)
                                             ============ ============
Weighted average shares outstanding              160,802      153,221
                                             ============ ============





                         Celsion Corporation
                Consolidated Condensed Balance Sheets
                            (in thousands)

                                                   December 31,
                                            --------------------------
                                                2005          2004
                                            ------------- ------------
                   ASSETS                    (Unaudited)
Current assets
     Cash and cash equivalents              $      7,534  $    10,484
     Accounts receivable                           1,599          783
     Inventory                                     2,689        2,202
     Prepaid expenses                                639          679
                                            ------------- ------------
     Total current assets                         12,461       14,148
Property and equipment, net                          663          682
Investment in Celsion China, Ltd.                     87          108
Escrow account - license fee                       2,013        2,007
Other assets                                         166          107
                                            ------------- ------------
     Total assets                           $     15,390  $    17,052
                                            ============= ============
    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
     Accounts payable                       $      1,583  $       873
     Accrued expenses                                598          685
     Deferred income                                 571          571
                                            ------------- ------------
     Total current liabilities                     2,752        2,129
Deferred revenue
     Total liabilities                             2,809        2,952

Stockholders' equity
     Common stock                                  1,609        1,607
     Additional paid-in capital                   84,640       84,581
     Accumulated deficit                         (76,420)     (74,217)
                                            ------------- ------------
     Total stockholders' equity                    9,829       11,971
                                            ------------- ------------
     Total liabilities and stockholders'
      equity                                $     15,390  $    17,052
                                            ============= ============

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

    SOURCE: Celsion Corporation