Arcturus Therapeutics Announces First Quarter 2020 Financial Results and Provides a Corporate Update Important progress advancing COVID-19 STARR mRNA vaccine candidate (LUNAR-COV19); New preclinical data demonstrate robu

Arcturus Therapeutics Announces First

Quarter 2020 Financial

Results and Provides a Corporate Update

Important progress advancing COVID-19

STARR mRNA vaccine candidate (LUNAR-COV19);

New preclinical data demonstrate robust

immunogenicity with a single, low dose

Company remains on track to begin clinical

trial for COVID-19 vaccine this summer

Successfully raised net of $75.5 million

in secondary common stock offering;

Current resources sufficient to support

operations for more than two years

Investor Conference Call at 4:30 p.m.

San Diego, Calif, May 7, 2020 -

Arcturus Therapeutics Holdings Inc. (the "Company", "Arcturus", Nasdaq: ARCT), a leading clinical-stage

messenger RNA medicines company focused on the discovery, development and commercialization of therapeutics for vaccines and rare

diseases, today announced its financial results for the quarter ended March 31, 2020, and provided a corporate update.

"This has been a highly productive

period for Arcturus highlighted by the rapid advancement of our COVID-19 vaccine program. We are encouraged by the robust immunogenicity

observed in preclinical studies with a very low dose, single administration of LUNAR-COV19. The single, low dose is made possible

because of our efficient, proprietary self-replicating mRNA-based approach," said Joseph Payne, President & CEO of Arcturus.

"We are very pleased to have recently entered into a manufacturing partnership with Catalent, a leading producer of complex

biologics, and expect to have the capacity to produce hundreds of millions of doses of LUNAR-COV19. Our immediate priority and

focus are to initiate clinical trials this summer."

COVID-19 STARR mRNA vaccine

candidate (LUNAR-COV19) update

Arcturus today provided new preclinical

immunogenicity data from its COVID-19 vaccine candidate, extending previously disclosed neutralizing antibody seroconversion results

(demonstrating 100% seroconversion at single 2 g dose, day 19).

In the study, rodents were immunized with

either a single dose (0.2, 2, and 10 g, intramuscular) of self-replicating STARR mRNA (LUNAR-COV19), or conventional

mRNA, both formulated in LUNAR delivery technology. The results at day 30 demonstrated that the LUNAR-COV19 vaccine generated

a robust antibody response to SARS-CoV-2 spike protein at all doses, even at 1:2000 dilution.

The antibody data also showed that the

Company's proprietary self-replicating mRNA approach resulted in superior immunogenicity to conventional mRNA technology.

The robust immune response generated with

single, very low doses of LUNAR-COV19 may allow effective vaccination with a single dose, thereby enabling rapid manufacturing

scale up to hundreds of millions of doses in 2021, an important logistical consideration given the global nature of the COVID-19

The Company believes that the LUNAR-COV19

preclinical data provide additional compelling support for the upcoming clinical trial. Efforts are ongoing to obtain initial regulatory

approval in Singapore to begin human dosing as rapidly as possible. In parallel, activities are underway to support global development

of the COVID-19 vaccine.

Other recent corporate highlights

Financial results for the quarter ended

Revenues in conjunction with strategic

alliances and collaborations: Arcturus's primary source of revenues is currently from license fees and collaborative

payments received from research and development arrangements with pharmaceutical and biotechnology partners. For the three months

ended March 31, 2020, the Company reported revenue of $2.6 million, compared with $4.3 million in the three months ended March

31, 2019. The decline in collaboration revenues primarily relates to a $1.6 million decrease in reimbursements from CureVac associated

with the OTC collaboration that ended in the second quarter of 2019.

Operating expenses: Total

operating expenses for the three months ended March 31, 2020 were $12.1 million compared with $10.9 million for the same period

of 2019. The current quarter operating expenses were partially offset with $2.0 million in funds awarded by the CF Foundation and

$0.5 million of funds earned under the Singapore vaccine contract.

Net loss: For the three months

ended March 31, 2020, Arcturus reported a net loss of approximately $9.8 million, or ($0.67) per basic and diluted share, compared

with a net loss in the three months ended March 31, 2019 of $6.9 million, or ($0.68) per basic and diluted share.

Cash, cash equivalents, and investments:

Totaled $59.5 million as of March 31, 2020, compared to cash and cash equivalents of $71.4 million at December 31, 2019. Subsequent

to the end of the quarter, the Company added approximately $75.5 million from our successful secondary offering at $17 per share

and $5.0 million from our Singapore vaccine contract. Our Proforma Cash balance including the subsequent events, would have been

$140.0 million. Based on our current pipeline, the Company's current cash position is expected to be sufficient to support

operations for more than two years.

Thursday May 7th @ 4:30

Webcast: https://edge.media-server.com/mmc/p/xy5ogcuv

Founded in 2013 and based in San Diego,

California, Arcturus Therapeutics Holdings Inc. (Nasdaq: ARCT) is a clinical-stage mRNA medicines and vaccines company with enabling

technologies: (i) LUNAR lipid-mediated delivery, (ii) STARR mRNA Technology and (iii) mRNA drug substance along with

drug product manufacturing expertise. Arcturus' diverse pipeline of RNA therapeutic candidates includes programs to potentially

treat Ornithine Transcarbamylase (OTC) Deficiency, Cystic Fibrosis, Glycogen Storage Disease Type 3, Hepatitis B, non-alcoholic

steatohepatitis (NASH) and a self-replicating mRNA vaccine for SARS-CoV-2. Arcturus' versatile RNA therapeutics platforms

can be applied toward multiple types of nucleic acid medicines including messenger RNA, small interfering RNA, replicon RNA, antisense

RNA, microRNA, DNA, and gene editing therapeutics. Arcturus' technologies are covered by its extensive patent portfolio (187

patents and patent applications, issued in the U.S., Europe, Japan, China and other countries). Arcturus' commitment to the

development of novel RNA therapeutics has led to collaborations with Janssen Pharmaceuticals, Inc., part of the Janssen Pharmaceutical

Companies of Johnson & Johnson, Ultragenyx Pharmaceutical, Inc., Takeda Pharmaceutical Company Limited, CureVac AG, Synthetic

Genomics Inc., Duke-NUS, Catalent Inc., and the Cystic Fibrosis Foundation. For more information visit www.ArcturusRx.com

Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties for purposes of the

safe harbor provided by the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical

fact included in this press release, including those regarding the Company's expected performance, the Company's

development of any specific novel mRNA therapeutics, the Company's efforts to develop a vaccine against COVID-19 based

on the Company's mRNA therapeutics, the forecasted safety, efficacy or reliability of a vaccine against COVID-19,were

one to be successfully developed based on the Company's mRNA therapeutics, the timing and availability of a vaccine

against COVID-19 were one to be successfully developed based on the Company's mRNA therapeutics, the potential initiation

of human trials of a vaccine against COVID-19 based on the Company's mRNA therapeutics, the timing of initiation of

human trials of a vaccine against COVID-19 based on the Company's mRNA therapeutics, the ability of any product to receive

regulatory approval in Singapore and whether or not any other countries will accept the trials conducted in that jurisdiction,

the potential market impact of a vaccine against COVID-19 based on the Company's mRNA therapeutics, the potential manufacturing

capabilities of the Company's partnership with Catalent, the timing of technology transfer related to the Company's

partnership with Catalent, the manufacture of GMP batches of a vaccine against COVID-19, were one to be successfully developed

based on the Company's mRNA therapeutics, any expected benefit from the Company's partnership with Catalent and

timing of any benefits related thereto, our current cash position and expected cash burn and the impact of general business

and economic conditions are forward-looking statements. Arcturus may not actually achieve the plans, carry out the intentions

or meet the expectations or projections disclosed in any forward-looking statements such as the foregoing and you should not

place undue reliance on such forward-looking statements. Such statements are based on management's current expectations

and involve risks and uncertainties, including those discussed under the heading "Risk Factors" in Arcturus' Annual

Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on March 16, 2020 and in subsequent filings