LCT Expands Diabetes Clinical Trial

MELBOURNE, AUSTRALIA and AUCKLAND, NEW ZEALAND--(Marketwire - June 5, 2008) - Living Cell Technologies Limited (ASX: LCT) (PINKSHEETS: LVCLY) today announced that the positive preliminary data from its first clinical trial of Diabecell® for insulin dependent type 1 diabetes has encouraged the Company to expand the trial and proceed with testing higher doses.

In LCT's first Phase I/IIa trial of DiabeCell®, its lead product of encapsulated porcine insulin producing cells, 5 patients have been implanted with the lowest dose. As reported in the Company's clinical update on 31 March 2008, there have been no significant adverse effects and a clinical effect was demonstrated with reduction in daily insulin requirement for up to six months follow up with satisfactory control of blood glucose.

Professor Bob Elliott, LCT Medical Director said, "The clinical effects observed with the lowest dose and the uncomplicated safety profile to date have encouraged our clinical experts in Moscow to implant higher doses with the expectation of greater clinical benefit."

LCT's Chief Executive Officer, Dr Paul Tan said, "The scientific and ethics approvals allowed the trial protocol to be revised and continued with the total number of patients increased from 6 to 10 at this stage. In subsequent implants, the dose of DiabeCell® will move up from 5,000 islet equivalents per kilogram body weight (IEQ/kg) to 10,000 IEQ/kg."

"This revision of the clinical protocol in Moscow in effect expedites our clinical program for DiabeCell®," said Dr Paul Tan.

About Living Cell Technologies Ltd

Living Cell Technologies is developing cell-based products to treat life threatening human diseases. The company owns a bio-certified pig herd that it uses as a source of cells for treating diabetes and potentially for treatment of neurological disorders. For patients having type 1 diabetes, the company implants microencapsulated islet cells so that near-normal blood glucose levels might be achieved without the need for administration of insulin or at significantly reduced insulin levels. The company entered clinical trials for its diabetes product in 2007. LCT also is developing treatments for Huntington's disease and other neurological disorders that will involve implantation of micro-encapsulated choroids plexus cells to deliver beneficial proteins and neurotrophic factors to the brain. The company's technology has the potential for allowing healthy living cells to be injected into patients to replace or repair damaged tissue without requiring the use of immunosuppressive drugs to prevent rejection. For further information please visit www.lctglobal.com.

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This document contains certain forward-looking statements, relating to LCT's business, which can be identified by the use of forward-looking terminology such as "promising," "plans," "anticipated," "will," "project," "believe," "forecast," "expected," "estimated," "targeting," "aiming," "set to," "potential," "seeking to," "goal," "could provide," "intends," "is developing," "is being developed," "could be," "on track," or similar expressions, or by express or implied discussions regarding potential filings or marketing approvals, or potential future sales of product candidates. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no assurance that any existing or future regulatory filings will satisfy the FDA's and other health authorities' requirements regarding any one or more product candidates nor can there be any assurance that such product candidates will be approved by any health authorities for sale in any market or that they will reach any particular level of sales. In particular, management's expectations regarding the approval and commercialization of the product candidates could be affected by, among other things, unexpected clinical trial results, including additional analysis of existing clinical data, and new clinical data; unexpected regulatory actions or delays, or government regulation generally; our ability to obtain or maintain patent or other proprietary intellectual property protection; competition in general; government, industry, and general public pricing pressures; and additional factors that involve significant risks and uncertainties about our products, product candidates, financial results and business prospects. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. LCT is providing this information as of June 5 , 2008, and does not assume any obligation to update any forward-looking statements contained in this document as a result of new information, future events or developments or otherwise.

Contact Information: For further information: Dr. Paul Tan CEO P: +64 9 270 7941 M : 0402 716 984 (Aust) M : 021 608 784 (NZ) ptan@lctglobal.com Dr Bob Elliot Medical Director Living Cell Technologies Mob:+64 27 292 4177 Tel:+64 9 276 2690 relliott@lctglobal.com Rebecca Wilson Leonie Beach Investor & Media Relations Buchan Consulting P: +61 2 9237 2800 M: +61 417 382 391 rwilson@bcg.com.au Leslie Wolf Creutzfeldt Investor & Media Relations (U.S.) Grayling Global P: +1 646 284 9472 M: +1 917 854 4726 lwolf-creutzfeldt@hfgcg.com