Cyclacel Pharmaceuticals, Inc. CYCLACEL PHARMACEUTICALS REPORTS FIRST QUARTER 2016 FINANCIAL RESULTS - Conference Call Scheduled

CYCLACEL PHARMACEUTICALS REPORTS FIRST

QUARTER 2016 FINANCIAL RESULTS

- Conference Call Scheduled

May 11, 2016 at 4:30 p.m. EDT -

Berkeley Heights, NJ, May 11, 2016

- Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ: CYCCP; "Cyclacel" or the "Company"), a biopharmaceutical

company developing oral therapies that target the various phases of cell cycle control for the treatment of cancer and other serious

disorders, today reported its financial results and business highlights for the first quarter ended March 31, 2016.

The Company's net loss applicable

to common shareholders for the first quarter ended March 31, 2016 was $3.1 million, or $0.09 per basic and diluted share, compared

to net loss applicable to common shareholders of $5.0 million, or $0.19 per basic and diluted share for the first quarter ended

March 31, 2015. As of March 31, 2016, cash and cash equivalents totaled $17.1 million.

our Phase 3 pivotal study in acute myeloid leukemia (AML), approximately 2.6% of required events remain to be observed before

mature data become available," said Spiro Rombotis, President and Chief Executive Officer of Cyclacel. "The primary

endpoint of the study is overall survival. After top-line data readout, the mature data will be evaluated for submissibility to

regulatory authorities. In parallel, we have been progressing our CDK inhibitor programs. We have reported encouraging interim

data from the ongoing Phase 1/2 combination trial of seliciclib and sapacitabine in solid tumors, including durable partial responses

and stable disease in patients with BRCA positive breast, ovarian and pancreatic cancers. Updated data from this combination

study will be reported in an oral presentation at the 2016 ASCO Annual Meeting. In light of these data and investigator interest,

we started enrollment of an extension cohort in a BRCA-enriched population of breast cancer patients. We continue to enroll patients

in a first-in-human, Phase 1 study of CYC065, our second-generation CDK2/9 inhibitor, in patients with solid tumors and lymphomas.

Data presented at the AACR Annual Meeting 2016 highlighted CYC065's potential as an agent to treat hematological malignancies,

such as B-cell lymphoma. The Cyclacel team continues to pursue the vision of our founders, as appreciation of the importance of

CDK inhibitors is increasing among the medical community."

Recent Business Highlights

Dependent Kinase (CDK) 2/9 Inhibitor Programs

Cyclacel's Key Milestones for

Sapacitabine in myelodysplastic

CDK Inhibitor Programs

2016 Financial Results

Revenue for the three months ended March

31, 2016 was $0.1 million compared to $0.5 million for the same period of the previous year. The revenue is related to previously

awarded grants from the UK government being recognized over the period to progress CYC065 to IND and complete IND-directed preclinical

development of CYC140, a novel, orally available, Polo-Like Kinase 1 (PLK 1) inhibitor.

Research and Development Expenses

Research and development expenses decreased

to $2.5 million for the three months ended March 31, 2016 compared to $4.3 million for the same period in the previous year. The

decrease was primarily due to reduced study and clinical supply costs associated with the SEAMLESS Phase 3 trial, which completed

enrollment in December 2014, offset by increased expenditures primarily related to the first-in-human, Phase 1 study of CYC065

and grant supported research and development.

General and Administrative Expenses

General and administrative expenses for

the three months ended March 31, 2016 decreased to $1.4 million compared to $1.5 million for the same period in 2015.

Based on current plans the Company estimates

that it has capital resources to reach beyond the final analysis of SEAMLESS and continue existing programs through the end of

Conference call and Webcast Information

Cyclacel will conduct a conference call

on May 11, 2016 at 4:30 p.m. EDT to review the quarterly results. Conference call and webcast details are as follows:

Conference call information:

US/Canada call: (877) 493-9121/ international

call: (973) 582-2750

US/Canada archive: (800) 585-8367 / international

archive: (404) 537-3406

Code for live and archived conference

For the live and archived webcast, please

visit the Corporate Presentations and Events page on the Cyclacel website at www.cyclacel.com.

The webcast will be archived for 90 days and the audio replay for 7 days.

About Cyclacel Pharmaceuticals, Inc.

a biopharmaceutical company developing oral therapies that target the various phases of cell cycle control for the treatment of

cancer and other serious diseases. Sapacitabine, Cyclacel's most advanced product candidate, is the subject of SEAMLESS, a Phase

3 trial, which has completed enrollment and is being conducted under an SPA with the FDA as front-line treatment for acute myeloid

leukemia (AML) in the elderly, and other indications including myelodysplastic syndromes (MDS). Cyclacel's pipeline includes an

oral regimen of seliciclib in combination with sapacitabine in a Phase 1/2 study of patients with solid tumors, including BRCA

positive cancers, and CYC065, a novel CDK2/9 inhibitor, in a Phase 1 study of patients with solid tumors and lymphomas with potential

utility in both hematological malignancies and solid tumors. Cyclacel's strategy is to build a diversified biopharmaceutical business

focused in hematology and oncology based on a development pipeline of novel drug candidates. Please visit www.cyclacel.com

for more information.

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.

Contacts for Cyclacel Pharmaceuticals,

Company: Paul McBarron, (908) 517-7330,

Investor Relations: Russo Partners LLC,

Robert Flamm, (212) 845-4226, robert.flamm@russopartnersllc.com

Pharmaceuticals, Inc.

CYCLACEL PHARMACEUTICALS, INC.

STATEMENTS OF OPERATIONS

(In $000s, except share and per share amounts)

CYCLACEL PHARMACEUTICALS, INC.

CONSOLIDATED BALANCE SHEETS

(In $000s, except share, per share,