Arcturus Therapeutics Joint Venture mRNA Manufacturing Partner, ARCALIS, Awarded $115 Million in Grants from the Japanese Government LUNAR-FLU collaboration with CSL Seqirus achieves additional $17.5 million development

Arcturus Therapeutics Joint Venture mRNA Manufacturing

Partner, ARCALIS, Awarded $115 Million in Grants from the Japanese Government

LUNAR-FLU collaboration with CSL Seqirus achieves additional $17.5

million development milestone

SAN DIEGO--(BUSINESS WIRE)--Aug. 14, 2023-- Arcturus Therapeutics

Holdings Inc. (the "Company", "Arcturus", Nasdaq: ARCT), a global late-stage clinical messenger RNA medicines

company focused on the development of infectious disease vaccines and opportunities within liver and respiratory rare diseases, today

announced that ARCALIS Co., Ltd., its manufacturing joint venture in Japan to support the production of mRNA vaccines and

therapeutics, has been awarded $115 million in two separate grants from the Japanese government. The grants will be used to

fund the construction of a factory and the purchase of capital equipment to support current Good Manufacturing Practice (cGMP) production

of mRNA drug substance and mRNA drug product operations.

ARCALIS is a joint venture between Axcelead and Arcturus, wherein

Arcturus holds a 49% equity position that is subject to dilution. The factory, located in Minamisoma City, Japan, is designed

to provide cGMP integrated vaccine manufacturing, from mRNA drug substance to bulk nanoparticle-formulated drug product.

"It was an honor to welcome senior Japanese government officials

and dignitaries to the opening ceremonies for ARCALIS' state-of-the-art factory which will support the cGMP manufacturing of Arcturus'

next-generation STARR mRNA vaccines," said Pad Chivukula, Ph.D., Chief Scientific Officer of Arcturus Therapeutics.

Arcturus also announced today that the LUNAR-FLU program continues

to progress with funding and operational support from CSL-Seqirus, including an additional $17.5 million milestone which will

be used to fund flu program development activities. The LUNAR-FLU program utilizes Arcturus' clinically validated next-generation

STARR mRNA platform technology.

"We are pleased with the progress of the LUNAR-FLU program with

CSL Seqirus, our exclusive global licensee for the development of novel mRNA vaccines, and the significant role that Arcturus is playing

in the development activities," said Joseph Payne, President and CEO of Arcturus Therapeutics. "The LUNAR-FLU program

could represent a major advance in vaccination efforts against flu, potentially providing higher levels of efficacy and greater durability

compared to current flu vaccine approaches. We look forward to advancing this promising program."

About Arcturus Therapeutics

Founded in 2013 and based in San Diego, California, Arcturus

Therapeutics Holdings Inc. (Nasdaq: ARCT) is a global late-stage clinical mRNA medicines and vaccines company with enabling technologies:

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

manufacturing expertise. The Company has ongoing collaborations with CSL Seqirus and Meiji Seika Pharma, and a joint venture with ARCALIS.

Arcturus' pipeline includes RNA therapeutic candidates to potentially treat ornithine transcarbamylase deficiency and cystic fibrosis,

along with its partnered mRNA vaccine programs for SARS-CoV-2 (COVID-19) and influenza. Arcturus' versatile RNA therapeutics platforms

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

RNA, self-amplifying RNA, 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). 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, the issuance of funds by the Japanese government to ARCALIS, the anticipated use of the funds

by ARCALIS, the potential manufacture by ARCALIS of Arcturus vaccines, the continued progress of the LUNAR-FLU program,

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.

IR and Media Contacts

Arcturus Therapeutics

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Kendall Investor Relations

Source: Arcturus Therapeutics