Arcturus Therapeutics Announces Fourth Quarter and Full Year 2020 Financial Results and Positive Clinical Updates ARCT-021 single-shot COVID-19 STARR mRNA vaccine to be advanced to Phase 3 clinical development - on track

Arcturus Therapeutics Announces Fourth

Quarter and Full Year 2020 Financial Results and Positive Clinical Updates

ARCT-021 single-shot COVID-19 STARR

mRNA vaccine to be advanced to

Phase 3 clinical development -

on track to initiate Phase 3 study in Q2

ARCT-021 single shot immunogenicity profile

compares favorably with new data generated from recipients of a single dose of an approved conventional mRNA vaccine

ARCT-810 mRNA therapeutic for ornithine

transcarbamylase deficiency to be advanced to

Phase 2 clinical development -

on track to file CTA for Phase 2 multiple dose study in Q2

ARCT-032 mRNA therapeutic for cystic

fibrosis: completed successful

pre-IND interaction with FDA -

on track to file CTA in Q4

Investor conference call at 4:30 p.m.

San Diego, Calif, March 1, 2021

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

messenger RNA medicines company focused on the development of infectious disease vaccines and significant opportunities within

liver and respiratory rare diseases, today announced its financial results for the quarter and full year ended December 31, 2020

and provided a corporate update.

"Based on highly promising clinical

data from our Phase 1/2 study and emerging mRNA vaccine immunological data, we are advancing ARCT-021 for further development in

Phase 3. We are presently preparing to move forward a 5 g single dose regimen, to be confirmed based on pending Phase 2

data. Our self-amplifying mRNA-based investigational vaccine may provide a differentiated clinical profile and characteristics

that support widespread distribution across the globe. Our expectation is that successful protection from COVID-19 will require

repeated vaccination of billions of individuals for years to come and that ARCT-021 will be re-dosable. We believe that a re-dosable,

more easily distributable single shot mRNA vaccine would be a valuable option for many countries," said Joseph Payne, President

and CEO of Arcturus.

"In addition to advancing our vaccine

franchise, we have made continued progress advancing our pipeline of promising liver and lung mRNA therapeutic candidates. After

successfully beginning enrollment in the U.S. for our Phase 1b study for ARCT-810, a therapeutic candidate for Ornithine Transcarbamylase

(OTC) Deficiency, we have now also received approval from Health Canada to enroll subjects. We look forward to obtaining clinical

data this year," concluded Mr. Payne.

Recent Corporate Highlights

ARCT-021, Vaccine Candidate for SARS-CoV-2

ARCT-810, Therapeutic Candidate for

Ornithine Transcarbamylase (OTC) Deficiency

ARCT-032, Therapeutic Candidate for

Acquisition of Exclusive License to

mRNA Manufacturing Technology from Alexion Pharmaceuticals

Financial results for the quarter and

full year ended December 31, 2020

Revenues in conjunction with strategic alliances and

collaborations: Arcturus' primary source of revenues is from license fees and collaboration payments received

from research and development arrangements with our pharmaceutical and biotechnology partners.

On a quarterly basis, total revenue for the three months ended

December 31, 2020 was $2.2 million and was relatively flat when compared to the $2.3 million of the quarter ended September 30,

On a yearly basis, reported revenues of $9.5 million during

the year ended December 31, 2020, decreased from $20.8 million in the year ended December 31, 2019. The decline in collaboration

revenues primarily relates to three factors: a $5.6 million decrease in reimbursements from CureVac associated with the OTC collaboration

that ended in the third quarter of 2019, a decrease in one-time license revenue of $3.3 million from Synthetic Genomics that occurred

in 2019, and lower activity with other collaboration partners.

Operating expenses: On a quarterly basis,

total operating expenses for the three months ended December 31, 2020 were $33.3 million compared with $23.3 million for quarter

ended September 30, 2020, and $13.8 million in same period of 2019. Approximately $8 million of the sequential increase in operating

expenses during the quarter ended December 31, 2020 was due to the ramp in the Covid-19 program related expenses, which included

additional personnel, manufacturing and clinical trial expenses. The current quarter operating expenses were partially offset by

$2.7 million in funds awarded under the Singapore vaccine grants and by the Cystic Fibrosis Foundation.

On a yearly basis, total operating expenses were $81.1 million

for the year-ended December 31, 2020 compared with $46.3 million for the year ended December 31, 2019. The current year operating

expenses were partially offset by $15.2 million of funds earned under the Singapore vaccine grants and funds awarded by the Cystic

Fibrosis Foundation. The increase in net expenditures for the year ended December 31, 2020 as compared to the prior year was due

primarily to the increased activity in clinical and manufacturing expenditures related to the Company's Covid-19 and OTC

programs as well as increased personnel costs and other facility costs related to the organizational growth of the Company.

Net loss: For the three months ended December

31, 2020 Arcturus reported a net loss of approximately $31.1 million, or ($1.25) per basic and diluted share, compared with a net

loss in the three months ended September 30, 2020 of $21.0 million, or ($0.92) per basic and diluted share, and three months ended

December 31, 2019 of $11.0 million, or ($0.76) per basic and diluted share.

For the year ended December 31, 2020, net loss was approximately

$72.1 million, or ($3.55) per basic and diluted share, compared with a net loss for the year ended 2019 of $26.0 million, or ($2.15)

per basic and diluted share.

Cash and Cash Equivalents: The Company's

cash balance was $463.0 million as of December 31, 2020, compared to cash and cash equivalents of $301.1 million on September 30,

2020. The increase in cash and cash equivalents compared to the prior year is primarily due to the receipt of approximately $162

million in net proceeds from our December 2020 public offering. Subsequent to the end of the quarter, in January 2021 the Company

received $46.6 million in funds under a manufacturing loan from Singapore EDB for our Covid-19 vaccine program. Based on our current

pipeline, the Company's cash position is expected to be sufficient to support operations for more than two years.

About Arcturus Therapeutics

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 and vaccine candidates includes mRNA vaccine programs for SARS-CoV-2 (COVID-19) and Influenza, and other programs

to potentially treat Ornithine Transcarbamylase (OTC) Deficiency, and Cystic Fibrosis along with partnered programs including

Glycogen Storage Disease Type 3, Hepatitis B Virus, and non-alcoholic steatohepatitis (NASH). 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 (209 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 Medical School, and the Cystic Fibrosis Foundation. For more information visit www.ArcturusRx.com. In addition, please connect with us on Twitter and LinkedIn.

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, are forward-looking

statements, including those regarding strategy, future operations, collaborations, the likelihood of success, and the efficacy