StemCells, Inc. Partners With R Biomedical to Develop and Commercialize Reagents for Human iPS Cell Research

StemCells, Inc. Partners With R Biomedical to Develop and Commercialize
Reagents for Human iPS Cell Research

Announces Launch of "Ultra-Primary" SC Proven(R) Human Fibroblast Cell Line

NEWARK, Calif., Oct. 30, 2012 (GLOBE NEWSWIRE) -- StemCells, Inc.
(Nasdaq:STEM) announced today that it has partnered with R Biomedical, an
Edinburgh, UK-based biomedical company, to develop and commercialize a range
of cell lines and reagents to facilitate human induced pluripotent stem (iPS)
cell-based research for regenerative medicine applications. The first product
under the partnership, an "ultra-primary" human fibroblast cell line from
which researchers can generate iPS cell lines, was launched today under the SC
Proven brand.

"As evidenced by recent initiatives and white papers, the use of human iPS
cells for regenerative medicine is a key item on the bioeconomy agendas of
both the US and the UK governments," said Stewart Craig, Ph.D., Senior Vice
President, Development and Operations at StemCells, Inc. "The scientists at R
Biomedical are experts in the development of reagents for the iPS cell field
and the company is one of the few organizations to have secured ethical
approval to collect and process human somatic cells expressly designed for
generating iPS cell lines. We are pleased to collaborate with RBiomedical for
the commercialization of a series of new and innovative products to enable
regenerative medicine research."

Derived from skin biopsies collected under strict UK ethical control,
"ultra-primary" fibroblast cells are an ideal starting material from which to
generate human iPS cell lines by genetic reprogramming. The ability to
generate iPS cell lines from different patients and from normal donors could
enable researchers to address disease targets and develop therapeutics, both
by comparative genetic screening as well as by traditional compound library
screening.

"We are proud to be partnering with StemCells, Inc.," said Joe Mee, Managing
Director of RBiomedical. "The area of regenerative medicine is a burgeoning
field both for research and as a specialized platform for pharmaceutical
companies performing drug screening campaigns. RBiomedical is extremely well
positioned to provide unique iPS cell reagents, accompanying technology and
culture reagents to both academic and industrial researchers in partnership
with StemCells under their globally recognized and distributed SC Proven
brand."

Researchers interested in learning more about the SC Proven product portfolio
and the Company's contract service offerings are encouraged to visit
StemCells, Inc.'s booth at the World iPS Cell Summit meeting in Boston October
31 to November 01, 2012 (http://ipscell-summit.com/).

About StemCells, Inc.

StemCells, Inc. is engaged in the research, development, and commercialization
of cell-based therapeutics and tools for use in stem cell-based research and
drug discovery. The Company's lead therapeutic product candidate, HuCNS-SC®
cells (purified human neural stem cells), is currently in development as a
potential treatment for a broad range of central nervous system disorders,
including Pelizaeus-Merzbacher disease (PMD), a fatal myelination disorder,
chronic spinal cord injury, and dry age-related macular degeneration
(AMD).StemCells also markets a range of stem cell research products under the
SC Proven® brand (www.scproven.com), and offers contract cell process
development and production services (cellservices@stemcellsinc.com). Further
information is available at www.stemcellsinc.com.

The StemCells, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7014

About R Biomedical

R Biomedical (Roadbreaker Ltd) is a Scottish biomedical company specializing
in research, development and commercialization of technologies for
regenerative medicine. The company focuses on procedures, protocols and
reagents for somatic cell therapeutics with an emphasis in providing new
cellular technology as a resource for genetic reprogramming.Specifically, R
Biomedical derives human cells from tissue samples under strict ethical
approval, which are optimized for regenerative medicine research. Working
closely with its academic partners at the University of Edinburgh, R
Biomedical considers its patient volunteers to be equal partners in a search
for new therapeutic regimes to ultimately find cures for otherwise incurable
diseases. For more information please go to https://www.rbiomedical.com/.

Apart from statements of historical fact, the text of this press release
constitutes forward-looking statements within the meaning of the U.S.
securities laws, and is subject to the safe harbors created therein. These
statements include, but are not limited to, statements regarding the future
business operations of StemCells, Inc. (the "Company"); the timing and
prospect for the launch of future SC Proven products; the Company's ability to
develop new products for the stem-cell research market, including products
that enable iPS research; and the Company's ability to continue generating
revenues from its SC Proven business.These 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 such forward-looking statements due to
risks and uncertainties to which the Company is subject, including
uncertainties regarding the Company's ability to grow its SC Proven business
and compete successfully against better funded and better known companies in
the research tools market; uncertainties regarding the Company's ability to
obtain the increased capital resources needed to continue its current and
planned operations; uncertainties regarding the validity and enforceability of
the Company's patents and ability to secure such licenses or other
intellectual property rights as may be necessary to commercialize its
products; and other factors that are described under the heading "Risk
Factors" disclosed in Part I, Item 1A in the Company's Annual Report on Form
10-K for the year ended December 31, 2011 and in its subsequent reports on
Form10‑Q and Form8‑K.

CONTACT: Rodney Young
         StemCells, Inc.
         Chief Financial Officer
         (510) 456-4128

         Ian Stone
         Russo Partners
         (619) 308-6541

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