Cyclacel Pharmaceuticals, Inc. CYCLACEL PHARMACEUTICALS REPORTS SECOND QUARTER 2017 FINANCIAL RESULTS - Conference Call Scheduled

CYCLACEL PHARMACEUTICALS REPORTS SECOND

QUARTER 2017 FINANCIAL RESULTS

Conference Call Scheduled August 9, 2017 at 4:30 p.m. EDT -

Berkeley Heights, NJ, August 9,

2017 - Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ: CYCCP; "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 reported its financial results and business highlights for

the second quarter ended June 30, 2017.

The Company's net loss applicable

to common shareholders for the three months ended June 30, 2017 was $2.2 million or $0.50 per share, compared to net loss applicable

to common shareholders of $3.0 million, or $1.01 per share for the second quarter of 2016. As of June 30, 2017, cash and cash

equivalents totaled $13.6 million. Pro forma cash and cash equivalents as of June 30, 2017 totaled $27.4 million after

including $13.8 million in proceeds, net of expenses, received in the Company's underwritten offering completed on July

"As a result of the completion

of our recent offering, in which existing and new investors participated, we are able to advance the clinical investigation of

CYC065, our Cyclin Dependent Kinase (CDK) 2/9 inhibitor, in selected, molecularly-defined patient populations," said Spiro

Rombotis, President and Chief Executive Officer of Cyclacel. "We have selected a recommended Phase 2 dose for CYC065 from

part 1 of a dose-escalating, Phase 1, first-in-human, study of CYC065. Data from this study evidenced durable target engagement

and Mcl-1 biomarker suppression at well tolerated doses with initial evidence of anticancer activity in patients with Mcl-1 and/or

cyclin E overexpression or amplification. Our top priority is to finalize designs for a Phase 1/2 study testing CYC065 in combination

with venetoclax, a Bcl-2 inhibitor approved for chronic lymphocytic leukemia, an indication in which we believe Mcl-1 suppression

may be beneficial. In parallel, we will enroll a new part 2 of the Phase 1 study in patients with advanced solid tumors testing

additional dosing schedules. We look forward to reporting our progress, commencement of these studies and data, as they arise."

Transcriptional Regulation Program:

CYC065 CDK inhibitor

200 Connell Drive, Suite 1500, Berkeley Heights, NJ 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

July Underwritten Offering

Financial Highlights

As of June 30, 2017, cash and cash

equivalents totaled $13.6 million, compared to $16.5 million on December 31, 2016. After the July offering, pro forma cash

and cash equivalents are $27.4 million.

Revenue for the three months ended

June 30, 2017 were $0 compared to $0.2 million for the same period of the previous year. Revenue is primarily related to previously

awarded grants from the UK government being recognized over the period to progress IND-directed preclinical development of CYC140,

a novel, orally available, Polo-Like Kinase 1 (PLK 1) inhibitor, completed in November 2016.

Research and development expenses

were $1.2 million compared to $2.6 million for the same period in 2016. The decrease was primarily due to reduced study and clinical

supply costs associated with completion of the SEAMLESS study and completion of preclinical development of CYC140.

General and administrative expenses for

the three months ended June 30, 2016 and 2017 remained flat at $1.3 million.

Other income (expense), net for the

three months ended June 30, 2017 was $34,000, compared to $0.2 million for the same period of the previous year. The decrease

in other income (expense) is primarily related to foreign exchange movements.

The UK government research & development

tax credit for the quarter was $0.3 million, compared to $0.6 million for the same period of the previous year. During the quarter,

we also recognized cash received for the 2016 tax credit of $1.8 million.

Net loss for the three months June

30, 2017 was $2.2 million compared to $3.0 million for the same period in 2016.

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 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,

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'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.

Pharmaceuticals, Inc.

CYCLACEL PHARMACEUTICALS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In $000s, except share and per share

The accompanying notes are an integral

part of these consolidated financial statements.

CYCLACEL PHARMACEUTICALS, INC.

CONSOLIDATED BALANCE SHEETS

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

and liquidation preference amounts)