Celsion Corporation
Aug 18, 2008

Celsion Corporation Reports Second Quarter 2008 Financial Results

Focus Continues on the Advancement of Primary Liver Cancer and
Recurrent Chest Wall Clinical Trials

COLUMBIA, Md., Aug 18, 2008 (BUSINESS WIRE) -- Celsion Corporation (NASDAQ: CLSN) today announced financial results for its second quarter ended June 30, 2008. The Company reported a net loss from continuing operations of $2.4 million, or $0.24 per diluted share, compared to a net loss from continuing operations of $4.6 million, or $0.43 per diluted share, for the second quarter of 2007. When factoring in discontinued operations in 2007, the Company reported net income of $44.2 million, or $3.80 per diluted share, in the second quarter ended June 30, 2007. Net income for 2007 included the gain on the Sale of the Prolieve assets of $48 million.

Recent Celsion Milestones:

-- Presented well-received abstract presentations regarding Phase I and preclinical studies at two prestigious oncologic and drug delivery conferences

-- Demonstrated biological activity of its formulation in a patient population in its Phase I study for RCW cancer

-- Included in the Russell Microcap Index

Mr. Michael H. Tardugno, Celsion's President and Chief Executive Officer, commented, "Advancing our Phase III Liver Cancer Trial is our number one priority and we made significant progress on achieving our goals in this respect. Additionally, we have been and will continue carefully managing overhead costs while fully supporting our development pipeline. These actions reflect our commitment to advancing our research programs and thus driving shareholder value."

"Celsion remains focused on advancing our current programs," continued Mr. Tardugno. "We are in a strong position to fund our Phase III primary liver cancer study to a point where we have sufficient results to determine if there is support for an NDA filing, as well as demonstrating feasibility for additional formulations. Additionally, we continue to make progress in accelerating our Recurrent Chest Wall (RCW) cancer trial and anticipate initiating our pivotal Phase II study before the end of this year."

For the six months ended June 30, 2008, Celsion reported a net loss from continuing operations of $6.5 million, or $0.64 per share compared to a net loss from continuing operations of $7.9 million, or $0.73 per share, for the comparable period in 2007. Including income from discontinued operations in 2007, the Company recorded net income of $41.9 million, or $3.64 per diluted share.

Celsion is holding a conference call to discuss second quarter results on Monday, August 18, 2008, at 11:00 a.m. Eastern Time. Interested participants may dial 877-604-2080 (U.S./Canada) or 706-902-1383 (International) for the teleconference and use Conference ID: #59454102 to register ten minutes before the call is scheduled to begin.

The call will be archived for replay on August 18, 2008 at 2:00 p.m. and will be made available until Monday, August 25, 2008. The replay can be accessed at 800-642-1687 or 706-645-9291, Conference ID: # 59454102. The call will also be available on the Company's website <www.celsion.com> for 30 days after 2:00 p.m. on Monday, August 18, 2008.

About Celsion: Celsion is dedicated to the development and commercialization of oncology drugs including tumor-targeting treatments using focused heat energy in combination with heat activated drug delivery systems.

Celsion has research, license or commercialization agreements with leading institutions such as the National Institutes of Health, Duke University Medical Center, University of Hong Kong, Cleveland Clinic, and the North Shore Long Island Jewish Health System.

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 for per share amounts)
                             (Unaudited)

                      Three Months Ended         Six Months Ended
                           June 30,                  June 30,
                   ------------------------- -------------------------
                       2008         2007         2008         2007
                   ------------ ------------ ------------ ------------

Revenues           $         -  $         -  $         -  $         -

 Operating
  expenses:
  Research and
   development           1,615        2,349        4,582        4,120
  General and
   administrative          581        1,671        1,077        2,965
                   ------------ ------------ ------------ ------------
  Total operating
   expenses              2,196        4,020        5,659        7,085
                   ------------ ------------ ------------ ------------

  Loss from
   operations           (2,196)      (4,020)      (5,659)      (7,085)

 Other income
  (expense):
  Other expense           (159)        (416)        (839)        (416)
  Interest income           29          120          104          301
  Interest expense        (104)        (317)        (118)        (665)
                   ------------ ------------ ------------ ------------

 Loss from
  continuing
  operations            (2,430)      (4,633)      (6,512)      (7,865)

Discontinued
 Operations
 Income from
  discontinued
  operations                 -       48,847            -       49,722
                   ------------ ------------ ------------ ------------


Net (loss) /
 income            $    (2,430) $    44,214  $    (6,512) $    41,857
                   ============ ============ ============ ============

Net loss from
 continuing
 operations per
 common share -
 basic             $     (0.24) $     (0.43) $     (0.64) $     (0.73)
                   ============ ============ ============ ============

Net loss from
 continuing
 operations per
 common share -
 diluted           $     (0.24) $     (0.43) $     (0.64) $     (0.73)
                   ============ ============ ============ ============

Net income from
 discontinued
 operations per
 common share -
 basic             $         -  $      4.53  $         -  $      4.62
                   ============ ============ ============ ============

Net income from
 discontinued
 operations per
 common share -
 diluted           $         -  $      4.20  $         -  $      4.33
                   ============ ============ ============ ============

Net (loss) /
 income per common
 share - basic     $     (0.24) $      4.10  $     (0.64) $      3.89
                   ============ ============ ============ ============

Net (loss) /
 income per common
 share - diluted   $     (0.24) $      3.80  $     (0.64) $      3.64
                   ============ ============ ============ ============

Weighted average
 shares
 outstanding -
 basic              10,146,446   10,773,023   10,144,944   10,760,019
                   ============ ============ ============ ============

Weighted average
 shares
 outstanding -
 diluted            10,146,446   11,628,480   10,144,944   11,493,854
                   ============ ============ ============ ============

                         Celsion Corporation
                       Condensed Balance Sheets
                            (in thousands)

                                               June 30,
                                                 2008     December 31,
                                              (Unaudited)     2007
                                              ----------- ------------

 Current assets
  Cash and short term investments               $ 12,642     $  5,937
  Accounts receivable                                 73          230
  Due from Boston Scientific Corporation          15,000       15,000
  Prepaid expenses                                   226          257
                                              ----------- ------------
 Total current assets                             27,941       21,424
                                              ----------- ------------

  Property and equipment, net                        212          268
  Notes and loans receivable                         378        1,382
  Due from Boston Scientific Corporation -
   Non Current                                         -       15,000
  Other assets                                     1,460          965
                                              ----------- ------------
 Total other assets                                1,838       17,347
                                              ----------- ------------

 Total assets                                   $ 29,991     $ 39,039
                                              =========== ============


 Current liabilities
  Accounts payable                              $  1,310     $  1,830
  Accrued expenses                                 3,394        5,066
  Income taxes payable                                 -          546
  Note payable - current portion                     578          677
                                              ----------- ------------
 Total current liabilities                         5,282        8,119
                                              ----------- ------------

 Long-term liabilities
 Note payable                                          -          235
 Other liabilities                                    31           34
                                              ----------- ------------
 Total long-term liabilities                          31          269
                                              ----------- ------------

 Total liabilities                                 5,313        8,388
                                              ----------- ------------

 Stockholders' equity
  Common stock                                       108          108
  Additional paid-in capital                      88,866       88,320
  Unrealized loss on available for sale
   securities                                         (7)
  Accumulated deficit                            (61,650)     (55,138)
                                              ----------- ------------
     Subtotal                                     27,317       33,290
  Less: Treasury Stock - at cost                  (2,639)      (2,639)
                                              ----------- ------------
 Total stockholders' equity                       24,678       30,651
                                              ----------- ------------

Total liabilities and stockholders' equity      $ 29,991     $ 39,039
                                              =========== ============

SOURCE: Celsion Corporation

FD Ashton Partners
Geoff Grande, 617-747-1721
geoff.grande@fdashtonpartners.com

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