NEWS RELEASE - For Immediate Release

Celsense, Inc Raises Additional Funds in Series B

Investors support strategy for clinical testing of cellular imaging reagent, Cell Sense

July 2, 2009 - Pittsburgh, Pennsylvania

Celsense, Inc. announced today it has completed the sale of additional Series B Convertible Preferred Stock. Proceeds from the financing transaction total just over $1.76 million. The transaction included the sale of additional shares under a put option agreement with an existing investor.

Subject to approval, the proceeds of this transaction will permit Celsense to commence clinical testing of its lead compound, Cell Sense, in 2010. Cell Sense has the potential to become the first cellular label for in vivo imaging, detection, and quantification of labeled cells, approved by the FDA for clinical use in conjunction with cell-based therapies. 

“We are very fortunate to enjoy the support of our investors in this very difficult time for the financial and biotechnology industries,” said Charlie O’Hanlon, company President and CEO. “Clearly the strength of our commercial strategy has engendered support for the potential of our company among investors. In large part this is because our pre-clinical data has generated significant interest from customers who are committing to incorporate our lead reagent, Cell Sense, into upcoming clinical cell therapy trials.”

Celsense, Inc. has three reagents for MRI imaging of cells currently on the market for pre-clinical research and discovery. Customers include leading pharmaceutical and biotechnology companies and medical research centers worldwide. 

About Cell Sense
Cell Sense is a fluorocarbon tracer agent used to safely and efficiently label cells ex vivo without the use of transfection agents. Labeled cells are transplanted into the patient enabling researchers and clinicians to non-invasively track the administration and migration of therapeutic and/or diagnostic cells using 19F MRI or MRS. Applications include tracking cells in immunotherapy or regenerative medicine as well as diagnosis of inflammatory sites by tracking selected populations of immune cells. Using software developed by Celsense, investigators can quantify the number of labeled cells in a user-specified region of interest. It is expected that in vivo cellular imaging will routinely be used to provide a surrogate biomarker for certain cellular therapeutic and drug trials.

About V-Sense
V-Sense is an injectable fluorocarbon MRI tracer agent that labels leukocytes in situ, enabling the direct, non-invasive observation of immune system response and localized inflammation.  Applications include observing change in immune system response to therapeutics and mapping localized disease such as certain cancers and infections.  V-Sense can also be used to detect the partial pressure of oxygen in tissues, an important biomarker in cancer research and treatment

About Gene Sense
Gene Sense is a reporter gene that causes cells to express a metallic protein in vivo that is detectable in MRI.  Applications for Gene Sense include imaging transplanted cells and vector delivery.   

About Celsense, Inc.
Celsense, Inc. offers products that enable the non-invasive imaging of cells in vivo using MRI.  The mission of the company is to be the standard for cellular imaging in human health.

Contact Information:

Charlie O’Hanlon, President and CEO
Celsense, Inc.
(412) 263-2870