CYCLACEL TO RAISE UP TO $7.9 MILLION IN REGISTERED DIRECT OFFERING Berkeley Heights, NJ

CYCLACEL TO RAISE UP TO $7.9 MILLION IN REGISTERED DIRECT OFFERING

Berkeley Heights, NJ, January 21, 2010 Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ:

CYCCP; Cyclacel or the Company ) announced today that it has entered into definitive agreements

to raise $5.9 million in gross proceeds, before deducting placement agent fees and other estimated

offering expenses, and up to an additional $2.0 million, in a registered direct offering to certain

existing institutional investors of the Company.

The offering includes the sale and issuance of 2.35 million units, each unit consisting of one

share of the Company s common stock and one warrant to purchase 0.30 shares of common stock, at a

purchase price of $2.50 per unit. The warrants, which represent the right to acquire an aggregate

of 705,000 shares of common stock at an exercise price of $2.85 per share, have a five-year term

from the date of issuance and are exercisable beginning six months after the date of issuance. The

units were offered and sold pursuant to a prospectus supplement dated January 21, 2010 and an

accompanying prospectus dated February 12, 2007, pursuant to the Company s effective shelf

registration statement previously filed with the Securities and Exchange Commission.

Roth Capital Partners, LLC served as the sole placement agent for the offering. Merriman Curhan

Ford Co. served as financial advisor. The sale is expected to close on or about January 25,

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor

shall there be any sale of these securities in any jurisdiction in which such offer, solicitation

or sale would be unlawful prior to the registration or qualification under the securities laws of

any such jurisdiction. Any offer will be made only by means of a prospectus, including a prospectus

supplement, forming a part of the effective registration statement. Copies of the final prospectus

supplement together with the accompanying prospectus can be obtained at the SEC s website at

http://www.sec.gov or from Roth Capital Partners, LLC at 24 Corporate Plaza, Newport Beach,

About Cyclacel Pharmaceuticals, Inc.

Cyclacel is a biopharmaceutical company dedicated to the discovery, development and

commercialization of novel, mechanism-targeted drugs to treat human cancers and other serious

disorders. Three orally-available Cyclacel drugs are in clinical development. Sapacitabine

(CYC682), a cell cycle modulating nucleoside analog, is in Phase 2 studies for the treatment of

acute myeloid leukemia in the elderly, myelodysplastic syndromes and lung cancer. The Company

plans to submit a Special Protocol Assessment (SPA) request for a pivotal study with sapacitabine

during the first quarter of 2010. Seliciclib (CYC202 or R-roscovitine), a CDK (cyclin dependent

kinase) inhibitor, is in Phase 2 studies for the treatment of lung cancer and nasopharyngeal cancer

and in a Phase 1 trial in combination with sapacitabine. CYC116, an Aurora kinase and VEGFR2

inhibitor, is in a Phase 1 trial in patients with solid tumors. Cyclacel s ALIGN Pharmaceuticals

subsidiary markets directly in the U.S. Xclair Cream for radiation dermatitis, Numoisyn Liquid

and Numoisyn Lozenges for xerostomia. Cyclacel s strategy is to build a diversified

biopharmaceutical business focused in hematology and oncology based on a portfolio of commercial

products and a development pipeline of novel drug candidates. Please visit

www.cyclacel.com for additional information.

www.cyclacel.com info@cyclacel.com

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, the risk that Cyclacel will not obtain approval to market

its products, 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. These factors and others are more fully discussed under Risk Factors in the

Annual Report on Form 10-K for the year ended December 31, 2008, as supplemented by the interim

quarterly reports, filed with the SEC.

Contacts for Cyclacel Pharmaceuticals, Inc.

Corey Sohmer, (908) 517-7330

Cyclacel are trademarks of Cyclacel Pharmaceuticals, Inc. Numoisyn and Xclair are trademarks of Sinclair Pharma plc.

SOURCE: Cyclacel Pharmaceuticals, Inc.