Celsion Corporation
Mar 3, 2005

Celsion Corporation Reports Fourth Quarter 2004 Financial Results; Company Reports Revenue of $1.4 Million for Quarter

COLUMBIA, Md.--(BUSINESS WIRE)--March 3, 2005--

Meets Target for Placement of 100 Prolieve Units in Fiscal 2004

CELSION CORPORATION (AMEX:CLN) today announced financial results for its fourth quarter ended December 31, 2004. The Company reported revenue of $1.4 million for the quarter, compared to zero revenue for fourth quarter 2003. The Company recorded a net loss for the fourth quarter of $3.1 million, or $0.02 per basic and diluted share, compared to a net loss of $3.0 million or $0.02 per basic and diluted share for the comparable quarter in 2003.

Revenue for the fourth quarter of 2004 of $1.4 million represented an increase of 165% over revenue of $0.5 million for third quarter ended September 30, 2004. Compared to third quarter 2004, Celsion reported gross margin of 15%, up from 12%, as a result of a higher proportion of sales being derived from catheter kits.

Dr. Augustine Cheung, Celsion's Founder, President and Chief Executive Officer, commented, "We are extremely pleased with our fourth quarter results, which reflect the positive reception of Prolieve by both doctors and patients. Previously, we indicated that we expected to place 100 units by year-end 2004 and we actually came in at 101 units. In addition, since its introduction in February of 2004, approximately 2,500 patients have undergone treatment using our Prolieve system. More importantly, utilization of our Prolieve units is averaging six treatments per month, or double the industry average."

Dr. Cheung continued, "We are making great progress toward our goal of evolving from a medical device company to a cancer drug company. Last month, we announced the treatment of the first patient in our Phase I clinical trial to determine the safe maximum tolerated dose and pharmacokinetic profile of systemically delivered ThermoDox administered in combination with RFA in the treatment of liver lesions. The study is being performed at the National Institutes of Health (NIH). We are optimistic that we can complete this study by the end of this year. We also expect to resume our Phase I prostate cancer study using ThermoDox in combination with a modified Prolieve device and to complete that study next year."

Dr. Cheung concluded, "We believe that Celsion has made great progress over the past year and we have entered 2005 in a strong position both to support our commercial product and to continue to make advances in proving the efficacy of ThermoDox as an effective targeted cancer therapeutic.

"Our focus over the next 12 months will be on working to ensure that Prolieve continues to achieve wide acceptance in the marketplace. This success is paramount, since the funds obtained from Prolieve will be used to advance the development of our cancer products. We also believe that the studies that we have in progress will provide the foundation for Celsion's future growth.

"In the last year, we have added depth to our management team, and we expect to further strengthen it in 2005. We are continuing our search for a new CEO and are additionally recruiting for a medical director. We hope that we will fill both of these positions in the near future.

"We are excited about our future prospects and are dedicated to further improving shareholder value going forward."

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     Twelve Months Ended
                            December 31,            December 31,
                       ----------------------- -----------------------
                           2003        2004        2003        2004
                       ----------- ----------- ----------- -----------
                       (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Revenues               $        -  $    1,424  $        -  $    2,507
Cost of Sales                   -       1,204           -       2,101
                       ----------- ----------- ----------- -----------
Gross Margin                    -         220           -         406
                       ----------- ----------- ----------- -----------

Operating Expenses
     Research &
      development           2,110       2,758       9,191      11,533
     General and
      administrative          857         762       5,143       3,471
                       ----------- ----------- ----------- -----------
       Total Operating
        Expenses            2,967       3,520      14,334      15,004
                       ----------- ----------- ----------- -----------

Loss from Operations       (2,967)     (3,300)    (14,334)    (14,598)

Other Income/(Expense)
     License fee
      amortization              -         143           -         476
     Interest income           19          64          47         230
     Loss from
      investment in
      Celsion China
      Ltd.                      -         (44)          -         (92)
     Other                     (6)          -        (137)          -
                       ----------- ----------- ----------- -----------

Net loss before income
 taxes                     (2,954)     (3,137)    (14,424)    (13,984)

Income taxes                    -           -           -           -
                       ----------- ------------ ----------- ----------
Net loss               $   (2,954) $    (3,137) $  (14,424) $ (13,984)
                       =========== ============ =========== ==========
Net loss per common
 share (basic and
 diluted)              $    (0.02) $     (0.02) $    (0.12) $   (0.09)
                       =========== ============ =========== ==========
Weighted average
 shares outstanding       144,153     160,727     123,847     158,757
                       =========== ============ =========== ==========






                         Celsion Corporation
                Consolidated Condensed Balance Sheets
                            (in thousands)

                                                    December 31,
                                              ------------------------
                                                  2003        2004
                                              ------------ -----------
                    ASSETS                     (Unaudited) (Unaudited)
Current assets
     Cash and cash equivalents                $    12,272  $   10,484
     Accounts receivable                               17         783
     Inventory                                        918       2,202
     Prepaid expenses                                 362         679
                                              ------------ -----------
     Total current assets                          13,569      14,148
Property and equipment, net                           389         682
Investment in Celsion China, Ltd.                       -         108
Escrow account - license fee                            -       2,007
Other assets                                          482         107
                                              ------------ -----------
     Total assets                             $    14,440  $   17,052
                                              ============ ===========

     LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
     Accounts payable                         $       631  $      819
     Accrued expenses                                 356         738
     Deferred income                                    -         571
                                              ------------ -----------
     Total current liabilities                        987       2,128
Deferred revenue                                        -       2,952
                                              ------------ -----------
     Total liabilities                                987       5,080
                                              ------------ -----------

Stockholders' equity
     Common stock                                   1,480       1,608
     Additional paid-in capital                    72,205      84,581
     Accumulated deficit                          (60,232)    (74,217)
                                              ------------ -----------
     Total stockholders' equity                    13,453      11,972
                                              ------------ -----------
     Total liabilities and stockholders'
      equity                                  $    14,440  $   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