Cyclacel Pharmaceuticals, Inc. CYCLACEL ANNOUNCES PRICING OF $13.2 MILLION UNDERWRITTEN PUBLIC OFFERING Berkeley Heights, NJ

CYCLACEL ANNOUNCES PRICING OF $13.2 MILLION

UNDERWRITTEN PUBLIC OFFERING

Berkeley Heights, NJ, July 19, 2017 -

Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC) (Cyclacel or the Company), a clinical-stage biopharmaceutical company using cell

cycle, transcriptional regulation and DNA damage response biology to develop innovative, targeted medicines for cancer and other

proliferative diseases, today announced the pricing of an underwritten public offering of units for gross proceeds of $13.2 million,

prior to deducting underwriting discounts and commissions and offering expenses payable by Cyclacel.

The offering is comprised of Class A Units,

priced at a public offering price of $2.00 per unit, with each unit consisting of one share of common stock and a seven-year warrant

(each, a "warrant") to purchase one share of common stock with an exercise price of $2.00 per share, and Class B Units,

priced at a public offering price of $1,000 per unit, with each unit comprised of one share of preferred stock, which is convertible

into 500 shares of common stock, and warrants to purchase 500 shares of common stock with an exercise price of $2.00 per share.

The conversion price of the preferred stock issued in the transaction and the exercise price of the warrants are fixed and do not

contain any variable pricing features or any price based anti-dilutive features. The preferred stock issued in this transaction

includes a beneficial ownership blocker but has no dividend rights (except to the extent that dividends are also paid on the common

stock), liquidation preference or other preferences over common stock, and, with certain exceptions, has no voting rights. The

securities comprising the units are immediately separable and will be issued separately. The closing of the offering is expected

to take place on or about July 21, 2017, subject to the satisfaction or waiver of customary closing conditions.

Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann

Financial Services Inc. (NYSE MKT: LTS), is sole book-running manager in connection with the offering.

A total of 2,164,000 shares of common stock, 8,872 shares of preferred

stock convertible into 4,436,000 shares of common stock, and warrants to purchase 6,600,000 shares of common stock will be issued

in the offering. If exercised in full, the warrants could result in additional net financing proceeds to Cyclacel of $13.2

In addition, Cyclacel has granted the underwriters

a 45-day option to purchase up to 990,000 additional shares of common stock and/or additional warrants to purchase up to 990,000

shares of common stock solely to cover over-allotments, if any, at the public offering price per share and per warrant, less the

underwriting discounts and commissions.

The securities were offered pursuant to a registration

statement on Form S-1 (File No. 333-218305), which was declared effective by the United States Securities and Exchange Commission

("SEC") on July 18, 2017, and an additional registration statement filed pursuant to Rule 462(b).

This press release does not constitute an offer

to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such

offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

A final prospectus relating to this offering will be filed by Cyclacel with the SEC. When available, copies of the final prospectus

can be obtained at the SEC's website at www.sec.gov or from Ladenburg Thalmann & Co. Inc., Prospectus Department, 277

Park Avenue, 26th Floor, New York, New York 10172, by calling (212) 409-2000.

200 Connell Drive, Suite 1500, Berkeley Heights, New Jersey 07922, USA Tel +1 (908) 517 7330 Fax +1 866 271 3466

1 James Lindsay Place, Dundee, DD1 5JJ, UK Tel +44 1382 206 062 Fax +44 1382 206 067

www.cyclacel.com - info@cyclacel.com

About Cyclacel Pharmaceuticals, Inc.

Cyclacel Pharmaceuticals is a clinical-stage

biopharmaceutical company using cell cycle, transcriptional regulation and DNA damage response biology to develop innovative,

targeted medicines for cancer and other proliferative diseases. Cyclacel's transcriptional regulation program is evaluating CYC065,

a CDK inhibitor, in patients with advanced cancers. The DNA damage response program is evaluating a sequential regimen of sapacitabine

and seliciclib, a CDK inhibitor, in patients with BRCA positive, advanced solid cancers. Cyclacel is analyzing stratified and

exploratory subgroups from a Phase 3 study of sapacitabine in elderly patients with AML. Cyclacel's strategy is to build a diversified

biopharmaceutical business focused in hematology and oncology based on a pipeline of novel drug candidates. For additional information,

please visit www.cyclacel.com.

Forward-looking Statements

This news release contains certain forward-looking

statements that involve risks and uncertainties that could cause actual results to be materially different from historical results

or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include statements

regarding, among other things, the efficacy, safety and intended utilization of Cyclacel's product candidates, the conduct and

results of future clinical trials, plans regarding regulatory filings, future research and clinical trials and plans regarding

partnering activities. Factors that may cause actual results to differ materially include the risk that product candidates that

appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale or later clinical

trials, trials may have difficulty enrolling, Cyclacel may not obtain approval to market its product candidates, the risks associated

with reliance on outside financing to meet capital requirements, and the risks associated with reliance on collaborative partners

for further clinical trials, development and commercialization of product candidates. You are urged to consider statements that

include the words "may," "will," "would," "could," "should," "believes,"

"estimates," "projects," "potential," "expects," "plans," "anticipates,"

"intends," "continues," "forecast," "designed," "goal," or the negative of those

words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties

the Company faces, please refer to our most recent Annual Report on Form 10-K and other periodic and other filings we file with

the Securities and Exchange Commission and are available at www.sec.gov. Such forward-looking statements are current only as of

the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information,

future events or otherwise.

Copyright 2017 Cyclacel Pharmaceuticals,