REPORTS 2ND QUARTER 2016 FINANCIAL RESULTS

CYCLACEL PHARMACEUTICALS

REPORTS 2ND QUARTER 2016 FINANCIAL RESULTS

Call Scheduled August 10, 2016 at 4:30 p.m. EDT

BERKELEY HEIGHTS, N.J., Aug. 10,

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 financial results and business highlights for the second quarter ended June 30, 2016.

The Company's net loss applicable

to common shareholders for the second quarter ended June 30, 2016 was $3.0 million, or $1.01 per basic and diluted share, compared

to net loss applicable to common shareholders of $3.4 million, or $1.19 per basic and diluted share for the second quarter ended

June 30, 2015. As of June 30, 2016, cash and cash equivalents totaled $15.9 million.

"Subsequent to the end of the

quarter, we achieved a key milestone in our acute myeloid leukemia (AML) SEAMLESS Phase 3 study," said Spiro Rombotis, President

and Chief Executive Officer of Cyclacel. "The required number of events has been reached and preparations for final analysis

and reporting of SEAMLESS outcomes are underway. Over the next several weeks, we will complete data cleaning and validation operations

after which the database will be transferred to our statistical analysis vendor. We will subsequently report outcomes for the primary

(overall survival) and secondary endpoints and determination of submissibility of the SEAMLESS data set to regulatory authorities

in Europe and the United States.

In our DNA damage response program,

durable antitumor activity was reported at an oral presentation at the 2016 ASCO Annual Meeting with a combination of sapacitabine

and seliciclib, our CDK2/9 inhibitor, in heavily pretreated patients with breast, ovarian and pancreatic cancers who tested positive

for BRCA mutations. A disease control rate of 35.6% was observed, with ongoing responding patients achieving treatment durations

exceeding 1 and 4.7 years, respectively. We continue to enroll patients with solid tumors in a first-in-human, Phase 1 study of

CYC065, our second-generation CDK2/9 inhibitor."

DNA damage response program

Cyclin dependent kinase (CDK)

KEY UPCOMING MILESTONES

DNA damage response program

CDK Inhibitor Program

Sapacitabine in myelodysplastic

SECOND QUARTER 2016 FINANCIAL RESULTS

Revenue for the three months ended

June 30, 2016 was $0.2 million, compared to $0.3 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

were $2.6 million for the three months ended June 30, 2016 and $2.6 million for the three months ended June 30, 2015.

General and Administrative Expenses

General and administrative expenses

were $1.3 million for the three months ended June 30, 2016 and $1.3 million for the three months ended June 30, 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

first quarter of 2018.

CONFERENCE CALL AND WEBCAST INFORMATION:

Cyclacel will conduct a conference

call on August 10, 2016 at 4:30 p.m. Eastern Time to review the second quarter 2016 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:

Code for live and archived conference call is 59985383

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,

Cyclacel Pharmaceuticals is a clinical-stage

biopharmaceutical company using cell cycle control and DNA damage response biology to develop innovative, targeted medicines for

cancer and other proliferative diseases. The SEAMLESS randomized Phase 3 trial of sapacitabine as front-line treatment for AML

in the elderly under an SPA with FDA has completed enrollment. Cyclacel's pipeline includes an oral combination of seliciclib (CDK2/9

inhibitor) and sapacitabine in Phase 1 in advanced solid tumors, including patients with BRCA mutations; sapacitabine in Phase

2 in MDS; and CYC065 (CDK2/9 inhibitor) in Phase 1 in solid tumors and lymphomas with potential utility

based on preclinical data in other hematological malignancies. Cyclacel's strategy is to build a diversified biopharmaceutical

business focused in hematology and oncology based on a 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.

Copyright 2016 Cyclacel Pharmaceuticals,

CYCLACEL PHARMACEUTICALS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In $000s, except share and per share

CYCLACEL PHARMACEUTICALS, INC.

CONSOLIDATED BALANCE SHEETS

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

and liquidation preference amounts)

Source: Cyclacel Pharmaceuticals, Inc.