08 December 2005

BRW

Small but smart – BRW named Mesoblast among 10 stocks
that were well placed for 2006:

MESOBLAST Business: Adult stem-cell treatments for orthopaedic problems. Current price: $1.09 Market capitalisation: $101 million 52-week high/low: $1.28/340. Reason to buy: Met commercialisation targets; phase-two clinical trials to begin in US in 2006; institutions on its share register. Mesoblast was floated in December 2004 with the aim of using adult stem-cell treatments to solve a range of orthopaedic problems.

In the past 12 months it has achieved its commercialisation targets, including the starting of two pilot clinical trials in Australia. Mesoblast is also on schedule to file results with the US Food and Drug Administration, which should allow it to begin phase-two trials at the end of next year. Factors that bode well for Mesoblast in 2006 include the presence of Melbourne's billionaire Pratt family on the share register and the company's close links to the US through the founder and chief scientist, Silviu Itescu, professor of medicine at Columbia University in New York. The fact that Mesoblast is attempting to develop cures that sound too good to be true, for problems that many baby-boomer investors either already suffer from or probably will, heightens its appeal among small investors.

For further information, please call:

Julie Meldrum
Mesoblast Limited
0419 228 128
julie.meldrum@mesoblast.com

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