CELATOR® PHARMACEUTICALS ANNOUNCES APPOINTMENT OF FRED POWELL AS CHIEF FINANCIAL OFFICER

Princeton, New Jersey (December 18, 2012) -- Celator Pharmaceuticals today announced the appointment of industry veteran Fred M. Powell, CPA, as chief financial officer. Powell will be responsible for the Company's accounting, corporate finance, financial planning, investor relations, and administration functions.

"I had the pleasure of working with Fred in the past and am delighted to be able to welcome him onto the Celator management team," said Scott Jackson, chief executive officer of Celator Pharmaceuticals. "Fred brings a tremendous skill set and experience base to a company at our stage, with a 20-year track record in the biopharmaceutical industry that includes private and public financings, mergers and acquisitions, and domestic and global operations. He will make an immediate and substantive contribution to our success."

Powell joins Celator from OraPharma, Inc., where as chief financial officer he helped establish the specialty healthcare company as a stand-alone business after its sale by Johnson & Johnson in late 2010 and remained through its acquisition by Valeant Pharmaceuticals in June, 2012. Prior to joining OraPharma, he was the chief financial officer of BMP Sunstone Corporation, a publicly-traded U.S. specialty pharmaceutical company with primary operations in China, overseeing rapid, double-digit growth and its eventual sale to Sanofi-Aventis. Powell also held top finance and administration positions at Eximias Pharmaceutical Corporation, Innaphase Corporation, and ERT (formerly EResearch Technology). Over two decades in the biopharmaceutical industry, he has raised more than $250 million and facilitated transactions totaling more than $1 billion. Powell began his career as an auditor with KPMG Peat Marwick. He is a graduate of Penn State University.

"This is a very exciting time to be joining Celator Pharmaceuticals," said Powell. "With a widely applicable technology platform and a lead program entering Phase 3 in acute myeloid leukemia, the company is approaching several key inflection points and will have a variety of options to evaluate as it prepares for regulatory filings and commercialization over the next several years. I'm committed to working with Scott and the management team to create value for our investors, as well as for the physicians and patients who will ultimately benefit from our innovative products."

About Celator Pharmaceuticals, Inc.
Celator Pharmaceuticals, Inc., with locations in Princeton, NJ, and Vancouver, BC, is a privately held pharmaceutical company developing new and more effective therapies to treat cancer. CombiPlex®, the company's proprietary drug ratio technology platform, represents a novel approach that identifies molar ratios of drugs that will deliver a synergistic benefit, and locks the desired ratio in a nano-scale drug delivery vehicle that maintains the ratio in patients with the goal of improving clinical outcomes. The company pipeline includes two clinical stage products; CPX-351 (a liposomal formulation of cytarabine:daunorubicin) for the treatment of acute myeloid leukemia and CPX-1 (a liposomal formulation of irinotecan:floxuridine) for the treatment of colorectal cancer; a preclinical stage product, CPX-571 (a liposomal formulation of irinotecan:cisplatin); and multiple research programs, including the hydrophobic docetaxel prodrug nanoparticle (HDPN) formulation being studied by the National Cancer Institute's Nanotechnology Characterization Laboratory. Based on the applications of CombiPlex and the proprietary nanoparticle prodrug delivery platform, Celator is positioned to advance a broad pipeline of cancer therapies involving both previously approved and novel drug agents. For more information, please visit the company's website at www.celatorpharma.com. Information on ongoing trials is available at www.clinicaltrials.gov.

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