CYCLACEL PHARMACEUTICALS REPORTS FOURTH

CYCLACEL PHARMACEUTICALS REPORTS FOURTH

QUARTER AND FULL YEAR 2015 FINANCIAL RESULTS

- Conference Call Scheduled

March 24, 2016 at 4:30 p.m. EDT -

Berkeley Heights, NJ, March 24, 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 fourth quarter and full year ended December 31,

The Company's net loss applicable

to common shareholders for the fourth quarter ended December 31, 2015 was $3.4 million, or $0.10 per basic and diluted share,

compared to net loss applicable to common shareholders of $4.8 million, or $0.21 per basic and diluted share for the fourth quarter

ended December 31, 2014. As of December 31, 2015, cash and cash equivalents totaled $20.4 million.

our Phase 3 pivotal study in acute myeloid leukemia (AML), approximately 4% of required events remain to be observed before mature

data become available, expected around the first half of 2016 or approximately 18 months after completion of enrollment,"

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 tumor patients, including durable partial responses and stable disease in patients

with BRCA positive breast, ovarian and pancreatic cancers. In particular, two ongoing patients with BRCA positive breast cancer

have achieved over 1 and 4.5 years of treatment, respectively. In light of these data and investigator interest, we have started

an extension cohort in a BRCA-enriched population of breast cancer patients. Last fall we initiated a first-in-human, Phase 1

study of CYC065, our second-generation CDK2/9 inhibitor, in patients with solid tumors and lymphomas following extensive preclinical

data in the literature suggesting broad activity of CYC065 in both liquid and solid tumor models. 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 2/9 (CDK2/9) Inhibitor Programs

Cyclacel's Key Milestones for

in myelodysplastic syndromes (MDS):

2015 Financial Results

Revenue for the three months ended December

31, 2015 was $0.4 million compared to $0.2 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 $2.6 million for the three months ended December 31, 2015 compared to $4.4 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

enrolment 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 December 31, 2015 increased to $1.7 million, compared to $1.6 million for the same period in 2014.

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 March 24, 2016 at 4:30 p.m. EDT to review the fourth quarter and full year 2015 results. Conference call and webcast details

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 U.S. Food and Drug Administration (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 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.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

CYCLACEL PHARMACEUTICALS, INC.

CONSOLIDATED BALANCE SHEETS

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