CELSUS THERAPEUTICS ANNOUNCES POSITIVE PHASE II INTERIM RESULTS FOR MRX-6 IN THE TREATMENT OF CONTACT DERMATITIS First Cohort in Phase II Trial Shows Statistically Significant Improvement in Symptoms Final Results From A

CELSUS THERAPEUTICS ANNOUNCES POSITIVE

PHASE II INTERIM RESULTS

FOR MRX-6 IN THE TREATMENT OF CONTACT DERMATITIS

NEW YORK, NY AND LONDON, UK -

May 08, 2013 - Celsus Therapeutics (OTCQB: MRRBY), an emerging growth, development-stage biotechnology company, announced

today positive interim results from the first cohort (2% MRX-6 vs. vehicle) of a multi-center Phase II double blind, two step dose-ranging,

vehicle and active control study of MRX-6 for the treatment of patients with allergic contact dermatitis (ACD). MRX-6 is a multi-functional

non-steroidal anti-inflammatory cream working through the inhibition of sPLA2, a steroid target, and through enriching cell surface

glycosaminoglycans (GAG).

Data released today are for treatment with

the highest (2.0%) dose of MRX-6 and vehicle control. The results show a 56% improvement in symptoms (dryness, scaling, redness,

pruritus and fissures) from baseline in the MRX-6 treated hand/forearm, compared to a 24% improvement for vehicle ( placebo')

treated hand/forearm (p < 0.0001). Each patient acted as his or her own control. Clinically significant benefit, defined as

a 50% reduction in symptoms from baseline in the MRX-6 treated hand/forearm was seen in 70% of patients. MRX-6 was found to

be safe and well-tolerated, with no adverse events. The benefit was similar regardless of patient baseline score, study center

or symptom sub-score.

Table 1. Percent Change from Baseline to

Day 21 - Comparison between treatment groups using Paired T-test/Wilcoxon Rank Sum Test - ITT population (N=30)

* Data are not normally distributed - P-Values result

from Wilcoxon Rank Sum test

"These results are very promising

and demonstrate that MRX-6 appears to have a significant clinical benefit in the treatment of contact dermatitis," said Gur

Roshwalb, Chief Executive Officer of Celsus Therapeutics. "Hands treated with MRX-6 demonstrated clinically meaningful improvement.

We currently anticipate filing a US IND in 2014 and initiating US Phase II trials for psoriasis and atopic dermatitis in the second

half of 2014. We believe these data validate our platform of targeting inflammation upstream of the eicosanoid

pathway, but without the metabolic and psychiatric side effects associated with steroids."

" Bilateral comparison trials are

the best way to assess the efficacy of a topical anti-inflammatory agent, and this trial clearly demonstrated statistically significant

superiority of the study drug over placebo [vehicle]," said Mark Lebwohl, M.D., Sol and Clara Kest Professor and Chairman

of the Department of Dermatology, Icahn School of Medicine at Mount Sinai, New York. "The placebo response rate of 24% is

expected in a topical therapy of allergic contact dermatitis, and the 54% response seen with the active drug shows it to be highly

This Phase II, double-blind, two-part dose

ranging and active control study plans to enroll 85 patients with moderate to severe ACD, as determined by the Physician Visual

Assessment Score (PVA). Patients recruited to the study displayed similar disease severity on both hands as determined by the PVA,

which scores five items (dryness, redness, scaling, pruritus and fissures) each on a scale of 0-3 (none, mild, moderate or severe)

for a total symptom score of 0-15. Patients receive the vehicle cream ( placebo') on one hand and the active drug to

be used only on the other (i.e., each patient acted as his/herown control) twice a day for 21 days. The study is being conducted

in two parts;part one (just unblinded) enrolled 30 patients at the highest, 2% concentration, of MRX-6. In the next part of the

study, to be carried out in the second half of 2013, 55 patients will again act as their own controls but will receive in a random

manner either MRX-6 ( 1%, 0.2%) or topical steroids, for 21 days. The primary efficacy outcome is defined as the difference in

percentage change from baseline to day 21 in the PVA score for the treated versus vehicle hand/forearm. The secondary outcomes

include the evaluation of the safety and tolerability of the three doses of MRX-6 and efficacy by symptom sub-score.

About Contact Dermatitis

There are two types of contact dermatitis:

irritant dermatitis (ID) and allergic contact dermatitis (ACD). ACD is an inflammatory skin condition characterized by erythematous

and pruritic skin lesions that occur after re-exposure to an irritant. ACD stems from sensitization to an allergen upon initial

skin contact. Future allergen exposure then leads to a delayed hypersensitivity reaction. In contrast, ID is caused by exposure

of an alkaline or acidic irritant on the skin surface, which injures the dermal layer, and its immediate removal prevents further

damage. The primary distinction between ID and ACD is that elements that cause ID are not immunologically sensitized, and thus,

do not cause an allergic reaction as they would in ACD.

About MFAIDs (Multi-Functional, Anti-Inflammatory

Celsus is developing a platform of first-in-class,

synthetic, non-steroidal anti-inflammatory drugs. They are designed to inhibit extracellular secretory phospholipase A2 (sPLA2),

a catalytic enzyme responsible for initiating the inflammatory cascade through the production of arachidonic acid from membrane-associated

phospholipids, specifically at the cell surface. MFAIDs can inhibit all sPLA2 isomers without disrupting cytoplasmic

phospholipase A2 (cPLA2), a crucial homeostatic enzyme within cells. MDAIDS also enrich cell surface glycosaminoglycans,

protecting cells from exposure to oxygen radicals and certain cytokines. Thanks to their structure, MFAIDS fulfill multiple functions

in cell protection: the lipid moiety, suppresses the decomposition of the cell membrane lipids, and the conjugated GAG mimics the

native surface GAG in protecting the cell from damaging agents.

About MRX-6 - Dermatitis

MRX-6 is an MFAID topical cream treatment

under development for treating skin inflammatory disorders, specifically allergic contact dermatitis and atopic dermatitis, also

About Celsus Therapeutics Plc.

Therapeutics is an emerging clinical stage company focused on the development of a new class of non-steroidal, synthetic anti-inflammatory

drugs termed Multi-Functional Anti-Inflammatory Drugs or MFAIDs. Celsus's MFAIDs represent a new therapeutic platform for

the treatment of a broad array of inflammatory diseases, such as allergies and autoimmune diseases. Presently, the Company has

two lead drug candidates in its clinical pipeline, MRX-6, a topical cream for contact dermatitis and MRX-4, a nasal spray for treating

allergic rhinitis (hay fever). Other potential treatments in preclinical development include OPX-1 for ocular inflammation, CFX-1

for cystic fibrosis, and MRX-5 for inflammatory bowel disease.

FORWARD-LOOKING STATEMENTS - This

press release contains "forward-looking statements" that involve known and unknown risks, uncertainties and other factors

that may cause our actual results, performance or achievements to be materially different from any future results, performance

or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements

by terms including "anticipates," "believes," "could," "estimates," "expects,"

"intends," "may," "plans," "potential," "predicts," "projects," "should,"

"will," "would," "hope," "look forward" and similar expressions intended to identify forward-looking

statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and

subject to risks and uncertainties. You should not put undue reliance on any forward-looking statements. Unless we are required

to do so under applicable laws, we do not intend to update or revise any forward-looking statements.