StemCells, Inc. Announces Publication Describing Non-Invasive Tracking of Human Neural Stem Cells Transplanted in Vivo

StemCells, Inc. (NASDAQ: STEM) today announced the publication of a paper describing a new technique for non-invasive tracking of human neural stem cells transplanted into the brains of mice. The technique involves tagging the human neural stem cells with Feridex®, a commonly used magnetic resonance imaging agent approved by the United States Food and Drug Administration (FDA) for use in humans. Tagging the human neural stem cells in this way does not appear to alter the stem cells’ function or viability. The paper, entitled "Long-term monitoring of transplanted human neural stem cells in developmental and pathological contexts with magnetic resonance imaging,” appears in this week’s online edition of the Proceedings of the National Academy of Sciences. The lead authors of the paper are Raphael Guzman, M.D., Clinical Instructor, Department of Neurosurgery, and Gary Steinberg, M.D., Ph.D, Bernard and Ronni Lacroute-William Randolph Hearst Professor of Neurosurgery and the Neurosciences and Chair, Department of Neurosurgery, both of Stanford University School of Medicine. Several researchers at StemCells, Inc. also worked on these studies and the human neural stem cells used were supplied by the Company. "This is an important contribution to the field of human cellular transplantation. The ability to track non-invasively human neural stem cells transplanted into the brain could enhance our knowledge and understanding of where the cells go, how they get there and how they behave when they get to their final destination,” said Stephen Huhn M.D., F.A.C.S., F.A.A.P., Vice President and Head of Neural Program at StemCells, Inc. "Ultimately, this could help the adoption of human cellular transplants into clinical practice. We are currently investigating the Company’s proprietary HuCNS-SC™ human neural stem cell product in a clinical trial for Batten disease and future studies could potentially employ this labeling agent.” About StemCells, Inc. StemCells, Inc. is a clinical-stage biotechnology company focused on the discovery, development and commercialization of cell-based therapeutics to treat diseases of the nervous system, liver and pancreas. The Company’s programs seek to repair or repopulate neural, liver or other tissue that has been damaged or lost as a result of disease or injury. StemCells has pioneered the discovery and isolation of the human neural stem cell. The cells are expandable into cell banks for therapeutic use, which offers the potential of using normal, non-genetically modified cells as cell-based therapies. StemCells has approximately 50 U.S. and 100 non-U.S. patents. Further information about the Company is available on its Web site at www.stemcellsinc.com. Apart from statements of historical facts, the text of this press release constitutes forward-looking statements regarding, among other things, the future business operations of StemCells, Inc. (the "Company”) and its ability to conduct clinical trials as well as its research and product development efforts. The forward-looking statements speak only as of the date of this news release. The Company does not undertake to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof. Such statements reflect management’s current views and are based on certain assumptions that may or may not ultimately prove valid. The Company’s actual results may vary materially from those contemplated in the forward-looking statements due to risks and uncertainties to which the Company is subject, including uncertainty as to whether results obtained in the animal models of infantile NCL (Batten disease), or other diseases and conditions will be able to be translated into treatment for humans; uncertainty as to whether the FDA or other applicable regulators or review boards will permit the Company to continue clinical testing of its investigative HuCNS-SC cell-based therapeutic or in future clinical trials of other proposed cell-based therapies for other diseases or conditions despite the novel and unproven nature of these technologies; uncertainties regarding the timing and duration of, and enrollment of patients in any clinical trials; uncertainties regarding the Company’s ability to obtain the increased capital resources needed to continue its current research and development operations and to conduct the research, preclinical development and clinical trials necessary for regulatory approvals; uncertainty regarding the validity and enforceability of the Company’s patents; uncertainty as to whether HuCNS-SC and any products that may be generated in the future in the Company’s stem cell programs will prove safe and clinically effective and not cause tumors or other side effects; uncertainty as to whether the Company will achieve revenues from product sales or become profitable; and other factors that are described under the heading "Risk Factors” in Item 1A of the Company’s Annual Report on Form 10-K.