Pluristem's CEO Letter to Shareholders

Pluristem's CEO Letter to Shareholders

HAIFA, Israel, Jan. 7, 2013 (GLOBE NEWSWIRE) --

Dear Pluristem Shareholders,

In 2012 we have made great progress and moved closer to fulfilling our vision
of being a leader in developing and manufacturing cell therapies. We have had
significant achievements in many areas including:

1.Clinical trials development activity
2.Exploring new potential product candidates
3.Enhancing our IP position
4.Insured financial soundness and joining the Tel Aviv 75 and 100 indexes
5.Constructing a new state of the art manufacturing facility for our PLX
    Cells

Clinical trials development activity

Achievements in clinically developing our products attest to the hard work,
dedication and ingenuity that our team demonstrates on a daily basis. In 2012
our milestones included:

1.The initiation of an FDA-approved Phase II clinical trial using PLX cells
    for the treatment of Intermittent Claudication (IC), a form of Peripheral
    Artery Disease (PAD)
2.The approval by the Paul Erhlich Institute (PEI), the German medical
    regulatory body, to commence a Phase I/II clinical trial for the
    rehabilitation of injured gluteal muscles following a total hip
    replacement
3.The filing with the FDA for Orphan Drug Status in using our PLX cells in
    the treatment of Aplastic Anemia (a disease involving bone marrow failure)
4.The successful treatment of critically ill patients under a compassionate
    use program at the Hadassah Medical Center in Jerusalem
5.The development of a Point-of-Care thawing device for our PLX Cells
6.The invitation by the U.S. National Institutes of Health (NIH) to submit
    our PLX cells to their scientific teams to evaluate them in animal models
    of acute radiation syndrome (ARS)
7.The formation of a Peripheral Artery Disease Steering Committee and a
    Hematological Diseases Clinical Advisory Board (CAB)

Exploring new potential product candidates

We have conducted several preclinical studies this year and the results of
these studies demonstrate that our PLX cells may be effective in a number of
indications. Because we can produce specific PLX products tailored towards the
mechanism of a disease, this allows us to expand these indications. We
discovered and developed a dedicated composition of PLX cells tailored to
possess unique characteristics found to be beneficial in the treatment of
Acute Radiation Syndrome and bone marrow illness.

In the pulmonary area, we were able to improve lung function and reduce the
pulmonary fibrosis that occurs in Interstitial Lung Disease (ILD). In the
cardiac area, we have demonstrated that the cardiac function in diabetic
animals with heart failure was improved by using our PLX cells.

Enhancing our IP position

During 2012 we have invested significant efforts in strengthening our IP
position. We have filed several new patent families covering new indications,
new devices and manufacturing processing. We were also granted several patents
and filed new applications at the National Phase stage. As of December 2012,
all of this activity has led to Pluristem fully owning 22 granted patents and
95 pending applications.

Insured financial soundness and inclusion into the Tel Aviv 75 and 100 indices

We are very proud to be included in the Tel Aviv 75 and Tel Aviv 100 indices.
The TA-100 Index is one of the TASE's leading indices and is comprised of the
shares of the 100 largest Israeli companies ranked by market capitalization.
As a result, we now have exposure with more institutional, long-term investors
who are now able to invest in our stock due to our inclusion in these indices.
This is a good step in the right direction for our company as we look to bring
in more institutional investors to become long-term shareholders of our stock.
During 2012 we raised $34 million net in a secondary offering. With our strong
cash position of approximately $65M with no debt, we are well positioned to
support our research and development as well as our clinical programs with a
goal of bringing PLX cells to the market for several indications.

Constructing new "state-of-the-art" manufacturing facility for our PLX Cells

We have recently initiated the final validation steps for our new Good
Manufacturing Process (GMP) facility prior to taking possession. I am
extremely proud of our team in meeting milestones for the completion of this
state of the art facility. We have also been hard-at-work optimizing our
manufacturing process, including the scale up and automation processes, to
accommodate the potential future commercial production of our PLX cells. We
have initiated the "integral runs" that incorporate all the scale up and
automation processes into a seamless production line. These "integral runs"
will enable us to move the production line into our new manufacturing facility
effectively.

We are very proud of the immense progress that our team has made this year.
With so many major milestones on the horizon, we look forward to keeping you
updated on the progress of our clinical trials, partnerships, and other
activities in the coming months.

I wish you and your families a happy, healthy and fruitful 2013.

Thank you very much for your continued support.

Zami Aberman

Chairman and CEO

About Pluristem Therapeutics

Pluristem Therapeutics Inc. (Nasdaq:PSTI) (TASE:PLTR) is a leading developer
of placenta-based cell therapies. The Company's patented PLX (PLacental
eXpanded) cells are a drug delivery platform that releases a cocktail of
therapeutic proteins in response to a host of local and systemic inflammatory
and ischemic diseases. PLX cells are grown using the company's proprietary 3D
micro-environmental technology and are an "off-the-shelf" product that
requires no tissue matching prior to administration. Pluristem is focusing on
the development of PLX cells administered locally to potentially treat
systemic diseases and potentially obviating the need to use the intravenous
route.

Pluristem has a strong patent and patent applications portfolio, company-owned
GMP certified manufacturing and research facilities, strategic relationships
with major research institutions and a seasoned management team. For more
information visit www.pluristem.com, the content of which is not part of this
press release.

The Pluristem Therapeutics Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6882

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995 and federal securities laws. For example, when we discuss the
successful treatment of critically ill patients under a compassionate use
program at the Hadassah Medical Center in Jerusalem, when we discuss that our
PLX cells may be effective in a number of indications based on preclinical
studies that were conducted this year, when we discuss that we now have
exposure with more institutional, long-term investors who are now able to
invest in our stock due to our inclusion in the TA indices, when we discuss
that we are well positioned to support our research and development as well as
our clinical programs with a goal of bringing PLX cells to the market for
several indications, when we discuss the potential future commercial
production of our PLX cells and when we discuss the "integral runs" that will
enable us to move the production line into our new manufacturing facility
effectively. These forward-looking statements are based on the current
expectations of the management of Pluristem only, and are subject to a number
of factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. The
following factors, among others, could cause actual results to differ
materially from those described in the forward-looking statements: changes in
technology and market requirements; we may encounter delays or obstacles in
launching and/or successfully completing our clinical trials; our products may
not be approved by regulatory agencies, our technology may not be validated as
we progress further and our methods may not be accepted by the scientific
community; we may be unable to retain or attract key employees whose knowledge
is essential to the development of our products; unforeseen scientific
difficulties may develop with our process; our products may wind up being more
expensive than we anticipate; results in the laboratory may not translate to
equally good results in real surgical settings; results of preclinical studies
may not correlate with the results of human clinical trials; our patents may
not be sufficient; our products may harm recipients; changes in legislation;
inability to timely develop and introduce new technologies, products and
applications; loss of market share and pressure on pricing resulting from
competition, which could cause the actual results or performance of Pluristem
to differ materially from those contemplated in such forward-looking
statements. Except as otherwise required by law, Pluristem undertakes no
obligation to publicly release any revisions to these forward-looking
statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events. For a more detailed
description of the risks and uncertainties affecting Pluristem, reference is
made to Pluristem's reports filed from time to time with the Securities and
Exchange Commission.

CONTACT: Pluristem Therapeutics Inc.:
        
         William Prather R.Ph., M.D. Sr. VP Corporate Development
         1-303-883-4954
         William.PratherMD@pluristem.com
        
         Daya Lettvin
         Investor & Media Relations Director
         +972-54-674-5580
         daya@pluristem.com

Pluristem Therapeutics Inc. Logo