Arcturus Therapeutics Announces Fourth Quarter and Full Year 2021 Financial Update and Pipeline Progress Emergency Use Authorization (EUA) application for ARCT-154 submitted to Vietnam Ministry of Health ARCT-154 Phase 1

Therapeutics Announces Fourth Quarter and Full Year 2021 Financial Update and Pipeline Progress

Emergency Use Authorization (EUA) application

for ARCT-154 submitted to Vietnam Ministry of Health

ARCT-154 Phase 1/2 booster study data in U.S.

and Singapore demonstrated 28-, and 54-fold increases in neutralizing antibody activity against SARS-CoV-2 ancestral and Omicron

strains, respectively

Investor conference call at 4:30 p.m. ET today

San Diego, Feb 28, 2022 - Arcturus Therapeutics Holdings

Inc. (the "Company", "Arcturus", Nasdaq: ARCT), a late-stage clinical 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 fourth quarter and year ended December 31, 2021 and provided additional corporate updates.

"We have continued to execute across our organization, highlighted

by completion of filing for Emergency Use Authorization of ARCT-154 in Vietnam," said Joseph Payne, President and CEO of Arcturus

Therapeutics. "ARCT-154 has an attractive and differentiated profile as a low-dose, self-amplifying mRNA vaccine candidate that

has been generally safe and well tolerated based on review of blinded data from clinical trials to date. The EUA filing is based on safety

and immunogenicity data from the ongoing Phase 1/2/3 study. In addition to the Vietnam Ministry of Health, we continue to engage other

regulatory authorities to clarify the potential path to product approval as a booster vaccine."

Recent Corporate Highlights

Data demonstrated robust neutralizing antibody responses

against SARS-CoV-2 ancestral D614G strain as well as several variants of concern, including Beta, Delta, and Omicron.

Financial Results for the Fourth Quarter and Full Year Ended Dec.

31, 2021 (Unaudited)

Revenues in conjunction with strategic alliances and collaborations:

Arcturus' primary sources of revenues were from consulting and related technology transfer fees, license fees and collaborative

payments received from research and development arrangements with pharmaceutical and biotechnology partners. Total revenue for the three

months ended December 31, 2021 was $5.8 million, compared with $2.2 million in the three months ended December 31, 2020 and $2.4 million

for the three months ended September 30, 2021. The increase in revenue for the quarter was primarily due to the partial recognition of

the manufacturing technology transfer services upfront payment that was received from Vinbiocare during the quarter ended September 30,

2021. Total revenue for the year ended December 31, 2021 was $12.4 million compared with $9.5 million for the year ended December 31,

Operating expenses: Total operating expenses for the three months

ended December 31, 2021 were $43.4 million compared with $33.3 million for the three months ended December 31, 2020 and $56.3 million

for the three months ended September 30, 2021. The sequential decline in operating expenses was due to the reduction in manufacturing

and clinical costs primarily associated with the LUNAR-COV19 program CMC requirements necessary for regulatory filings. Total operating

expenses for the year ended December 31, 2021 were $215.2 million compared with $81.1 million for the year ended December 31, 2020.

Research and development expenses: Research and development

expenses for the three months ended December 31, 2021 were $32.6 million compared with $24.3 million for the three months ended December

31, 2020 and $45.4 million for the three months ended September 30, 2021. Research and development expenses for the year ended December

31, 2021 were $173.8 million compared with $57.8 million for the year ended December 31, 2020. The decrease in the three months ended

December 31, 2021 when compared with the three months ended September 30, 2021 is primarily attributable to a decrease in manufacturing

costs related to the LUNAR-COV19 program as our stockpiling and CMC regulatory requirements were met during the three months ended September

30, 2021. The year over year increases were primarily attributable to the development of the LUNAR-COV19 program to late-stage clinical

trials, including an increase in personnel related costs, primarily driven by an increase in the number of employees supporting our LUNAR-COV19

Net Loss: For the three months ended December 31, 2021, Arcturus

reported a net loss of approximately $38.7 million, or ($1.47) per basic and diluted share, compared with a net loss of $31.1 million,

or ($1.25) per basic and diluted share in the three months ended December 31, 2020 and a net loss of $54.1 million, or ($2.05) per basic

and diluted share in the three months ended September 30, 2021. For the year ended December 31, 2021, Arcturus reported a net loss of

approximately $203.7 million, or ($7.74) per basic and diluted share, compared with a net loss of $72.1 million, or ($3.55) per basic

and diluted share in the year ended December 31, 2020.

Cash Position: Cash and cash equivalents were $370.5 million

as of December 31, 2021, $413.9 million at September 30, 2021 and $462.9 million at December 31, 2020. Based on the current pipeline,

the Company's cash position is expected to be sufficient to support operations into late 2023.

About Arcturus Therapeutics

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 III, 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 (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, 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.

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, the expectations for or likelihood of success of any collaborations,

the likelihood of success (including safety and efficacy) of the Company's pipeline (including ARCT-154, ARCT-165, ARCT-810, ARCT-032

and LUNAR-FLU), the Company's efforts to develop a vaccine against COVID-19, the timing for selection of a LUNAR-FLU candidate,

the timing of any regulatory submissions and the likelihood that the Company will obtain clearance from regulatory authorities to proceed

with future planned clinical trials (including the planned CTA filing for ARCT-032), the planned initiation, design or completion of clinical

trials (including the initiation of a Phase 2 trial for ARCT-810), the likelihood that preclinical or clinical data will be predictive

of future clinical results, the likelihood that an interim or partial data set will be representative of a complete or larger data set

or that blinded data will be predictive of unblinded data (including with respect to the blinded data from ARCT-154 studies), the ability

to enroll, and timing for enrollment of, subjects in clinical trials (including for the planned ARCT-810 Phase 2 trial), the timing and

nature of any study results (including the timing for ARCT-810 Phase 2 interim data), the likelihood that clinical data will be sufficient

for regulatory approval or completed in time to submit an application for regulatory approval within a particular timeframe (including

with respect to the planned filing for an EUA for ARCT-154), the likelihood or timing of any regulatory approval (including with respect

to an EUA for ARCT-154), the likelihood and timing of a regulatory path to approval of ARCT-154 as a booster series, the Company's

manufacturing plans or technologies (including the timing and anticipated capacity of the manufacturing facility in Hanoi, Vietnam), the

likelihood that a patent will issue from any patent application, its current cash position, expected cash burn, and adequacy of its capital

to support future operations and the impact of general business and economic conditions. 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. These statements are only current predictions or expectations,

and are subject to known and unknown risks, uncertainties, and other factors that may cause our or our industry's actual results,

levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements, including

those discussed under the heading "Risk Factors" in Arcturus' most recent Annual Report on Form 10-K, and in subsequent

filings with, or submissions to, the SEC, which are available on the SEC's website at www.sec.gov. Except as otherwise required

by law, Arcturus disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the

date they were made, whether as a result of new information, future events or circumstances or otherwise.

Trademark Acknowledgements

The Arcturus logo and other trademarks of Arcturus appearing in this

announcement, including LUNAR and STARR , are the property of Arcturus. All other trademarks, services marks, and trade names

in this announcement are the property of their respective owners.

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