Receives Israeli Ministry of Health Approval to Initiate Phase I/II

Receives Israeli Ministry of Health Approval to Initiate Phase I/II

Clinical Trial in Leukemia Patients

innovative cell selection product may dramatically reduce bone marrow

transplantation risks

enrollment expected to begin in the next few weeks

Tel Aviv, Israel - September 13, 2016 -

Cellect Biotechnology Ltd. (Nasdaq: APOP, TASE: APOP), a developer of innovative technology which enables the functional selection

of stem cells, today announced that the Company has received the Israeli Ministry of Health's approval to begin a Phase I/II clinical

trial in leukemia patients. The trial, which Cellect expects will be initiated in a few weeks, is planned to be conducted in the

bone marrow transplantation ("BMT") unit of Rambam Hospital, and led by Clinical Assistant Professor, Zila Zuckerman,

the Director of the unit.

This trial is the first of its kind in leukemia patients in

need of BMT, and will evaluate Cellect's cell selection technology, "Powered by Cellect", with the aim of assessing the

technology's safety and efficacy. Cellect's cell selection process is designed to prevent severe adverse effects resulting

from mature cells, including patient death. These adverse effects occur due to the interaction between the donor's immune system

and the recipient's immune system. Cellect's technology may enable controlled destruction of those mature immune system cells,

thereby preventing the adverse effects.

Dr. Shai Yarkoni, the Company's Chief Executive Officer,

noted: "We are excited to have the opportunity to initiate this clinical trial and look forward to beginning to recruit patients

shortly. The comprehensive preparations, which included extensive studies in healthy volunteers, demonstrated an impressive success

in bone marrow transplants, with neither adverse effects nor mortality. We believe Cellect's transformative approach to cell

selection represents a significant breakthrough in the ability to produce selective destruction of mature cell populations, thus

reducing the significant risks associated with BMT."

The approval granted by the Ministry of Health to conduct the

trial in leukemia patients may facilitate other clinical trial approvals in additional indications in both the US and Europe, which

the Company is currently pursuing. Once the safety of Cellect's cell selection technology is established in clinical trials,

it will be validated for use in other applications, such as stem cell research and manufacturing processes of stem cell-based therapies.

Cellect Biotechnology is traded on both the NASDAQ and Tel Aviv

Stock Exchange (NASDAQ: "APOP", TASE: "APOP"). The Company develops an innovative technology which enables

the functional selection of stem cells based on their sensitivity to apoptosis. This functional-based selection is a breakthrough

technology in the ability to isolate stem cells from any given tissue, and may improve a variety of stem cells applications.

The Company's first planned product line is expected to

include unique containers for cell selection in an apoptosis-inducing microenvironment. Cellect's first planned commercial

product candidate is a medical kit designed for the cancer treatment bone marrow transplantations market, as well as other markets

which require cell selection. The Company plans that in the future its technology will be integrated in many production procedures

of stem cell-based products.

Forward Looking Statements

This press release contains forward-looking statements about

the Company's expectations, beliefs and intentions. Forward-looking statements can be identified by the use of forward-looking

words such as "believe", "expect", "intend", "plan", "may", "should",

"could", "might", "seek", "target", "will", "project",

"forecast", "continue" or "anticipate" or their negatives or variations of these words or

other comparable words or by the fact that these statements do not relate strictly to historical matters. For example, forward-looking

statements are used in this press release when we discuss the recruitment of patients for the Phase I/II clinical trial, the ability

of the Company's cell selection process to prevent adverse effects, the potential for the Company's technology to

improve the use of BMT for other indications, the Company's belief that the successful outcome of the Phase I/II clinical

trial will establish proof of concept and validate the usability of its products and the description of its technology and its

proposed uses in other applications. These forward-looking statements and their implications are based on the current expectations

of the management of the Company only, and are subject to a number of factors and uncertainties that could cause actual results

to differ materially from those described in the forward-looking statements. The following factors, among others, could cause

actual results to differ materially from those described in the forward-looking statements: changes in technology and market requirements;

we may encounter delays or obstacles in launching and/or successfully completing our clinical trials; our products may not be

approved by regulatory agencies; our technology may not be validated as we progress further and our methods may not be accepted

by the scientific community; we may be unable to retain or attract key employees whose knowledge is essential to the development

of our products; unforeseen scientific difficulties may develop with our process; our products may wind up being more expensive

than we anticipate; results in the laboratory may not translate to equally good results in real clinical settings; results of

preclinical studies may not correlate with the results of human clinical trials; our patents may not be sufficient; our products

may harm recipients; changes in legislation; and the Company's inability to timely develop and introduce new technologies,

products and applications, which could cause the actual results or performance of the Company to differ materially from those

contemplated in such forward-looking statements. Any forward-looking statement in this press release speaks only as of the date

of this press release. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether

as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

More detailed information about the risks and uncertainties affecting the Company is contained under the heading "Risk Factors"

in Cellect Biotechnology Ltd.'s prospectus dated July 29, 2016 filed with the SEC, which is available on the SEC's website, www.sec.gov.

Cellect Biotechnology Ltd.

Ronen Twito, Chief Financial Officer and Deputy Chief Executive

Bob Yedid, Managing Director