LINEAGE CELL THERAPEUTICS REPORTs FOURTH QUARTER AND FULL YEAR 2020 FINANCIAL RESULTS AND PROVIDES BUSINESS UPDATE Completed Enrollment in Phase 1/2a Clinical Trial of OpRegen for the Treatment of Dry Age-Related Macular

CELL THERAPEUTICS REPORTs FOURTH QUARTER AND FULL YEAR 2020 FINANCIAL RESULTS AND PROVIDES BUSINESS UPDATE

CA - March 11, 2021 - Lineage Cell Therapeutics, Inc. (NYSE American and TASE: LCTX), a clinical-stage biotechnology

company developing allogeneic cell therapies for unmet medical needs, today reported financial and operating results for the fourth

quarter and full year 2020. Lineage management will host a conference call and webcast today at 4:30 p.m. Eastern Time/1:30 p.m.

Pacific Time to discuss its fourth quarter and full year 2020 financial and operating results and to provide a business update.

goal is to build Lineage into the preeminent allogeneic cell transplant company, and we hit our stride in 2020, reaching significant

clinical, manufacturing, and business milestones and creating substantial value for our shareholders. We also positioned ourselves

for success in 2021 and beyond," stated Brian M. Culley, Lineage CEO. "We know of no other company that possesses

a comparable combination of cell therapy patent breadth, in-house manufacturing capabilities, and encouraging clinical evidence

in three distinct disease areas, each with large unmet needs and billion-dollar commercial opportunities. We believe the field

of cell therapy is poised for explosive growth in the months and years ahead. Our objective is to be positioned for that growth

by continuing to provide evidence that allogeneic approaches can generate safety and efficacy data which leads to commercial and

clinical advantages over alternate approaches. Importantly, Lineage also recently added $35.9 million in new capital through the

timely sales of our equity and marketable securities. We believe this new capital will ensure we are funded to deliver additional

significant milestones from our novel cell therapy pipeline and provide us with optionality in ongoing partnership discussions."

of the significant milestones we achieved during 2020 include:

of the events and milestones that our shareholders can look forward to in 2021 include:

cash equivalents, and marketable securities totaled $41.6 million as of December 31, 2020. Marketable securities as of December

31, 2020 include our remaining ownership of unrestricted securities in OncoCyte, and Hadasit Bio-Holdings Ltd (Hadasit).

2020, we funded our operations primarily by receiving payment in full for a total of $24.6 million on the Juvenescence promissory

note, and by selling a portion of our marketable securities, resulting in net proceeds of approximately $13.1 million.

during 2020, we selectively sold 3,094,322 of our common shares under the ATM offering for gross proceeds of approximately $5.1

million (which excludes $0.3 million of cash in transit related to 2020 sales that settled in 2021).

fundraising activities

January 1, 2021 through March 5, 2021, we sold an additional portion of our marketable securities, resulting in net proceeds of

approximately $10.1 million and an additional $19.9 million in gross proceeds through sales of 7,941,122 of our common shares

under the ATM offering (which includes $0.3 million in cash in transit related to 2020 sales that settled in 2021). As of March

5, 2021, the value of the Company's cash and cash equivalents were in excess of $57 million.

of March 5, 2021, we hold 1,122,401 shares of OncoCyte stock valued at approximately $4.2 million and 169,167 shares of Hadasit

stock valued at approximately $330,000, in each case based on the closing prices of those shares on March 5, 2021.

Company anticipates that net operational spend for 2021 will be approximately $20.0 to $22.0 million, which is similar to 2020

spending levels. The Company believes that it is well funded into 2023 as a result of sustained cost savings initiatives in 2020

and recent fundraising activities.

Quarter Operating Results

Lineage's revenue is generated primarily from research grants, royalties, and licensing fees. Total revenues for the three

months ended December 31, 2020 were approximately $0.4 million, a decrease of $0.8 million as compared to $1.2 million for the

same period in 2019. The decrease was primarily related to an approximate $0.6 million decrease in royalties and licensing fees,

which was primarily driven by the absence of a $0.6 million upfront payment from a new license agreement in 2019, and a $0.2 million

decrease in grant revenues due to the timing of grant related activities.

Expenses: Operating expenses are comprised of research and development (R&D) expenses and general and administrative (G&A)

expenses. Total operating expenses for the three months ended December 31, 2020 were $6.1 million, a decrease of $1.9 million

as compared to $8.0 million for the same period in 2019.

Expenses: R&D expenses for the three months ended December 31, 2020 were $2.6 million, a decrease of $0.9 million as compared

to $3.5 million for the same period in 2019. The overall decrease was primarily related to decreases of $1.5 million in OpRegen

and other ophthalmic application expenses, attributable primarily to a decrease in manufacturing activities in 2020 as compared

to 2019, and $0.1 million in Renevia and HyStem related expenses, offset by an increase of $0.5 million in OPC1 expenses, attributable

primarily to an increase in manufacturing activities, and a $0.3 million increase in VAC program expenses.

Expenses: G&A expenses for the three months ended December 31, 2020 were $3.5 million, a decrease of $1.0 million as compared

to $4.5 million for the same period in 2019. The decrease was primarily attributable to decreases of $0.4 million in legal and

patent expenses, $0.3 million in rent expense, $0.3 million in expenses related to our merger with Asterias Biotherapeutics, Inc.

(Asterias Merger) and $0.2 million in accounting and consulting expenses, offset by a $0.2 million increase related to the cessation

of shared services reimbursements.

from Operations: Loss from operations for the three months ended December 31, 2020 was $5.9 million, a decrease of $1.0 million

as compared to $6.9 million for the same period in 2019.

Income/(Expenses), Net: Other income/(expenses), net for the three months ended December 31, 2020 reflected other income, net

of $6.9 million, compared to other income, net of $1.5 million for the same period in 2019. The variance was primarily related

to the gain on sale of marketable securities and changes in the value of marketable equity securities for the applicable periods,

as well as foreign currency translation adjustments related to Lineage's international subsidiaries.

Income/(Loss) attributable to Lineage: The net income attributable to Lineage for the three months ended December 31, 2020 was

$2.0 million, or $0.01 per share (basic and diluted), compared to a net loss attributable to Lineage of ($4.5) million, or ($0.03)

per share (basic and diluted), for the same period in 2019.

Year Operating Results

Lineage's revenue is generated primarily from research grants, royalties, and licensing fees. Total revenues for the year

ended December 31, 2020 were $1.8 million, a decrease of $1.7 million as compared to $3.5 million for the same period in 2019.

The decrease was primarily related to a $1.0 million decrease in grant revenue due to less grant-related activities, $0.4 million

decrease in royalties from product sales and license fees, and a $0.3 million decrease in the sale of research products and services

due to the cessation of such sales.

Expenses: Operating expenses are comprised of R&D expenses and G&A expenses. Total operating expenses for the year ended

December 31, 2020 were $27.9 million, a decrease of $14.1 million as compared to $42.0 million for the same period in 2019.

Expenses: R&D expenses for the year ended December 31, 2020 were $12.3 million, a decrease of $5.6 million as compared to

$17.9 million for the same period in 2019. The overall decrease was primarily related to a decrease of $6.5 million in OpRegen

and other ophthalmic application expenses, attributable primarily to a decrease in manufacturing activities in 2020 as compared

to 2019, a decrease of $0.8 million in Renevia and other related expense as we are spending less and actively looking for a commercialization

partner, and a $0.5 million decrease in OPC1-related expenses, primarily driven by a return of unspent project funds of approximately

$0.8 million from a former Asterias service provider, offset by a $2.2 million increase in VAC program expenses, primarily related

to the accrual of the signature fee of 1.25 million ($1.6 million) to Cancer Research UK.

Expenses: G&A expenses for the year ended December 31, 2020 were $15.6 million, a decrease of approximately $8.4 million as

compared to $24.0 million for the same period in 2019. The decrease was primarily attributable to a $5.5 million decrease in Asterias

Merger related expenses, a $2.1 million reduction in compensation costs as a result of headcount reductions in 2019, a $0.9 million

reduction in accounting expenses, a $0.5 million reduction in rent and utilities, a $0.3 million reduction in travel expenses,

a $0.3 million reduction in office and information technology related expenses and a $0.2 million reduction in consulting expenses,

offset by a $0.9 million increase related to the cessation of shared services reimbursements and a $0.5 million increase in legal

and patent expenses.

from Operations: Loss from operations for the year ended December 31, 2020 was $26.4 million, a decrease of $12.5 million as compared

to $38.9 million for the same period in 2019.

Income, Net: Other income, net for the year ended December 31, 2020 reflected other income, net of $4.5 million, compared to other

income, net of $19.6 million for the same period in 2019. The variance was primarily related to the changes in the value of equity

method investments and marketable equity securities for the applicable periods, gain on sale of marketable securities for the

applicable periods, as well as foreign currency translation adjustments related to Lineage's international subsidiaries.

loss attributable to Lineage: The net loss attributable to Lineage for the year ended December 31, 2020 was $20.6 million, or

$0.14 per share (basic and diluted), compared to a net loss attributable to Lineage of $11.7 million, or $0.08 per share (basic

and diluted), for 2019.

will host a conference call and webcast today, at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time to discuss its fourth quarter

and full year 2020 financial results and to provide a business update. Interested parties may access the conference call by dialing

(866) 888-8633 from the U.S. and Canada and (636) 812-6629 from elsewhere outside the U.S. and Canada and should request the "Lineage

Cell Therapeutics Call". A live webcast of the conference call will be available online in the Investors section

of Lineage's website. A replay of the webcast will be available on Lineage's website for 30 days and a telephone replay

will be available through March 19, 2021, by dialing (855) 859-2056 from the U.S. and Canada and (404) 537-3406 from elsewhere

outside the U.S. and Canada and entering conference ID number 4176568.