NeoStem's Subsidiary, Progenitor Cell Therapy, and Hackensack University Medical Center Enter Into a Cell Processing and Storage

NeoStem's Subsidiary, Progenitor Cell Therapy, and Hackensack University
Medical Center Enter Into a Cell Processing and Storage Services Agreement

ALLENDALE, N.J. and HACKENSACK, N.J., Jan. 7, 2013 (GLOBE NEWSWIRE) --
NeoStem, Inc. (NYSE MKT:NBS) and its subsidiary, Progenitor Cell Therapy, LLC
("PCT"), an internationally recognized contract development and manufacturing
organization (CDMO), and Hackensack University Medical Center
("HackensackUMC"), part of the Hackensack University Health Network and a hub
of healthcare for the Northern New Jersey and New York metropolitan areas,
announced today that HackensackUMC has renewed its engagement of PCT's
services for processing and storage of a variety of cell types used
therapeutically by the hospital.

HackensackUMC will use the services of PCT for processing and storage services
for peripheral blood progenitor cells, donor leukocytes, bone marrow and cord
blood, as well as for further assays, storage, retrieval and transportation.
HackensackUMC was recently voted one of the best hospitals by U.S. News and
World Report 2012-2013, placing it fourth out of the 184 hospitals in the New
York Metropolitan Area and number 1 in New Jersey. HackensackUMC has grown to
be a preeminent cancer treatment facility with one of the largest blood and
bone marrow transplant programs in the world.

"We are very excited to continue our relationship with HackensackUMC, whose
engagement of PCT began in 1999, thirteen years ago," said Robert A. Preti,
PhD, President and Chief Scientific Officer of PCT. "Our agreement with
HackensackUMC enables us to continue to play a vital part in patient care for
cancers and other hematologic disorders, and to continue to provide cell
products to our entire client base. Since its founding, PCT hasprovided cell
therapy products for infusion into over 6,000 patients."

"Our agreement with PCT provides us with a high quality and cost-effective
solution to our cell processing and storage needs and supports a range of cell
therapy based research and development programs," said Robert C. Garrett,
President and Chief Executive Officer of HackensackUMC. Dr. Andre Goy,
Chairman and Director of the John Theurer Cancer Center at HackensackUMC,
added, "PCT's platform, which is designed under strict cGMP ("Current Good
Manufacturing Practices") guidelines, ensures that our research activities
will be conducted using the gold standard of our industry. PCT's recognized
competencies in cell and tissue processing and storage, as well as cell
transportation, make it an ideally suited partner for HackensackUMC."

Dr. Robin L. Smith, NeoStem's Chairman and Chief Executive Officer, stated
that, "Our continued partnership with an institution of the calibre of
HackensackUMC is a validation of our entire company's focus and commitment to
the support and development of the emerging cell therapy industry, as we bring
innovative therapies to patients suffering from cancers, autoimmune conditions
and other disorders. PCT has shown strong revenue growth in 2012 with an
increase of over 90% from the year prior.PCT's exceptional client retention
rate validates the management's commitment to Quality and Services as we look
forward to future growth with our clients outside of the United States."

About Hackensack University Medical Center

HackensackUMC, a non-profit teaching and research hospital located in Bergen
County, New Jersey, is the largest provider of inpatient and outpatient
services in the state, and home to the only Level II Trauma Center in the
county. This 775-bed facility has gone beyond traditional thinking by creating
an entire campus of care, including: the Heart & Vascular Hospital, the John
Theurer Cancer Center, the Joseph M. Sanzari Children's Hospital, and the
Donna A. Sanzari Women's Hospital. As a result of using science and creativity
to push medicine further, HackensackUMC was listed as the number one hospital
in New Jersey and one of the top four New York metro area hospitals by the
U.S. News & World Report, and has received nine national rankings in: Cancer;
Cardiology & Heart Surgery; Ear, Nose & Throat; Gastroenterology; Geriatrics;
Neurology & Neurosurgery; Orthopedics; Urology; and the Joseph M. Sanzari
Children's Hospital ranked as one of the Top 25 Best Children's Hospitals for
Neurology and Neurosurgery in the 2012-13 Best Children's Hospitals list. The
medical center has also been named one of the Truven Health Analytics 100 Top
Hospitals® and one of America's 50 Best Hospitals by HealthGrades®. It is
listed among the Leapfrog Top Hospitals List, received 19 Gold Seals of
Approval™ by the Joint Commission, and is listed as one of the 50 Best
Hospitals in America by Becker's Hospital Review. It was the first hospital in
New Jersey and second in the nation to become a Magnet® recognized hospital
for nursing excellence. The medical center is the Hometown Hospital of the New
York Giants and the New York Red Bulls, and remains committed to its community
through fundraising and community events. To learn more about one of the
nation's 50 best hospitals, visit: www.HackensackUMC.org.

About NeoStem, Inc.

NeoStem continues to develop and build on its core capabilities in cell
therapy, capitalizing on the paradigm shift occurring in medicine. We
anticipate that cell therapy will have a significant role in the fight against
chronic disease and in lessening the economic burden that these diseases pose
to modern society. We are emerging as a technology and market leading company
in this fast developing cell therapy industry. Our multi-faceted business
strategy combines a state-of-the-art contract development and manufacturing
subsidiary, PCT, with a medically important cell therapy product development
program, enabling near and long-term revenue growth opportunities. We believe
that, with our expertise and research capabilities and collaborations, we will
achieve our mission of becoming a premier cell therapy company.

Our contract development and manufacturing service business supports the
development of proprietary cell therapy products. NeoStem's most clinically
advanced therapeutic, AMR-001, is being developed at Amorcyte, LLC
("Amorcyte"), which we acquired in October 2011. Amorcyte is developing a cell
therapy for the treatment of cardiovascular disease and is enrolling patients
in a Phase 2 trial to investigate AMR-001's efficacy in preserving heart
function after a heart attack. Athelos Corporation ("Athelos"), which is
80%-owned by our subsidiary, PCT, is collaborating with Becton-Dickinson in
the early clinical exploration of a T-cell therapy for autoimmune conditions.
In addition, pre-clinical assets include our VSEL™ Technology platform as well
as our mesenchymal stem cell product candidate for regenerative medicine. Our
service business and pipeline of proprietary cell therapy products work in
concert to create a competitive advantage that we believe is unique to the
biotechnology and pharmaceutical industries. Supported by an experienced
scientific and business management team and a substantial intellectual
property estate, we are well positioned to succeed.

For more information on NeoStem, please visit www.neostem.com.

Forward-Looking Statements for NeoStem, Inc.

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements reflect management's current expectations, as of the date of this
press release, and involve certain risks and uncertainties. Forward-looking
statements include statements herein with respect to the successful execution
of the Company's business strategy, including with respect to the Company's or
its partners' successful development of AMR-001 and other cell therapeutics,
the size of the market for such products, its competitive position in such
markets, the Company's ability to successfully penetrate such markets and the
market for its contract development and manufacturing business, and the
efficacy of protection from its patent portfolio, as well as the future of the
cell therapeutics industry in general, including the rate at which such
industry may grow. The Company's actual results could differ materially from
those anticipated in these forward- looking statements as a result of various
factors, including but not limited to matters described under the "Risk
Factors" in the Company's Annual Report on Form 10-K filed with the Securities
and Exchange Commission on March 20, 2012 and in the Company's other periodic
filings with the Securities and Exchange Commission, all of which are
available on its website. The Company does not undertake to update its
forward-looking statements. The Company's further development is highly
dependent on future medical and research developments and market acceptance,
which is outside its control.

CONTACT: For HackensackUMC press relations, please contact:
        
         Sheri Hensley
         551-996-3586
         SHensley@HackensackUMC.org
        
         For NeoStem press relations, please contact:
        
         Trout Group
         Lauren Kwiecinski, Senior Associate
         Phone: +1-646-378-2934
         Email: lkwiecinski@troutgroup.com

NeoStem Inc. Logo
 
Press spacebar to pause and continue. Press esc to stop.