StemCells, Inc. Strengthens Product Development Team and Appoints Executive to Focus on Scientific and Strategic Alliances

StemCells, Inc. Strengthens Product Development Team and Appoints Executive to
Focus on Scientific and Strategic Alliances

NEWARK, Calif., June 10, 2013 (GLOBE NEWSWIRE) -- StemCells, Inc.
(Nasdaq:STEM) today announced key hires to strengthen its product development
capabilities and announced the creation of a new corporate function
responsible for establishing scientific and strategic alliances and for
building on the Company's existing stem cell technology platform. 

Eliseo Salinas, M.D., has joined the Company as Executive Vice President and
Head of Research and Development, and will be responsible for the Company's
research, product development and clinical translation activities.Dr. Salinas
will report to Martin McGlynn, President and CEO of the Company.

Ann Tsukamoto, Ph.D., who has most recently served as the Company's Executive
Vice President of Research and Development, will assume the new role of
Executive Vice President, Scientific and Strategic Alliances, responsible for
developing the Company's alliances with research institutions, corporations,
government agencies and disease foundations. Dr. Tsukamoto will continue to
report to Mr. McGlynn.

The Company also announced that Nicki Vasquez, Ph.D., has joined the Company
as Vice President of Program and Portfolio Management, and Allyson Gage,
Ph.D., has joined as Senior Director of Clinical Development.

"The Company's clinical trials have so far been single-arm open-label studies,
involving a small number of patients and conducted at one or two clinical
sites," said Mr. McGlynn. "These trials, however, have generated a growing
body of encouraging human data, providing us with strong rationale to begin
preparing for controlled, Phase II, proof of concept studies in multiple
disease indications, involving larger patient numbers and multiple trial sites
internationally. The addition of Eliseo, Nicki and Allyson is an integral
part of our strategy to ensure we have the expertise and bandwidth to succeed
in this next step of the Company's path to market approval.

"Meanwhile, I am delighted to have Ann assume the role of EVP for Scientific
and Strategic Alliances.This will be Ann's fifth leadership role here at
StemCells, and there is no one better qualified to take charge of building on
our existing relationships with state and federal agencies, such as the
National Institutes of Health and the California Institute for Regenerative
Medicine, and with other important stakeholders, such as the International
Society for Stem Cell Research and the various disease foundations.In
addition, Ann will play an important role in helping us stay abreast of the
rapidly evolving scientific and technological developments that could have
far-reaching implications for the Company's long-term success."

Dr. Tsukamoto has been a groundbreaking researcher in the field of stem cell
biology for more than twenty years.She joined the Company in February 1998 as
Senior Director, Scientific Operations, and has held several leadership roles
at the Company, most recently as Executive Vice President of Research and
Development since September 2008.Dr.Tsukamoto was a co-discoverer of the
human hematopoietic stem cell while at SyStemix, Inc., and played a leading
role at StemCells in the isolation of the human neural stem cell as well as
populations of human liver and pancreatic cells with stem cell-like
properties. Dr. Tsukamoto received her doctorate from the University of
California, Los Angeles, and did postdoctoral research at the University of
California, San Francisco.

In his new role, Dr. Salinas will focus on accelerating completion of the
Company's ongoing trials in spinal cord injury and age-related macular
degeneration, as well as advancing the Company's plans for a PhaseII study in
Pelizaeus-Merzbacher disease.Dr. Salinas has more than 20 years of experience
and expertise developing therapeutic products for central nervous system (CNS)
disorders in many key jurisdictions worldwide, including the United States,
Canada, the European Union, and Japan.Under his leadership, 15 programs
obtained regulatory approval in the United States and other major
international markets.Prior to joining StemCells, Dr.Salinas was Executive
Vice President, Head of Development, and Chief Medical Officer of Elan
Pharmaceuticals.Before joining Elan, Dr. Salinas was Senior Vice President,
Research and Development and Chief Medical Officer of Adolor Coproration;
Executive Vice President, Speciality Pharma, Research and Development and
Chief Scientific Officer of Shire plc; and held roles of increasing
responsibility in research and development at Wyeth-Ayerst Research, including
head of worldwide CNS product development.Dr. Salinas earned his medical
degree from the University of Buenos Aires, Argentina, performed a residency
in psychiatry in Paris at the Clinique des Maladies Mentales et de
l'Encéphale, and obtained a master's degree in pharmacology from the
Université Pierre et Marie Curie, Académie de Paris, France.

Both Drs. Vasquez and Gage are experts in product development in the biotech
industry.Dr.Vasquez was most recently Vice President, Global Development
Program & Portfolio Management at Elan Pharmaceuticals.She earned her
doctorate in immunology and bachelor's degree in microbiology from the
University of California, San Diego.Dr. Gage has held senior roles in
clinical development at Elan and Forest Laboratories, Inc.She earned her
doctorate and master's degree in neuroscience from Albert Einstein College of
Medicine.

In connection with their hire, the Company has granted Drs. Salinas, Vasquez
and Gage an aggregate total of 496,965 restricted stock units (RSUs). Each
grant was made pursuant to the Company's 2012 Commencement Incentive Plan and
in accordance with Nasdaq Listing Rule5635(c)(4) concerning inducement grants
to new employees.Each RSU gives the holder the right to receive upon vesting,
without cash payment, a share of StemCells common stock.With the exception of
11,765 RSUs, which vested three days after grant, all of these granted RSUs
have four-year vesting schedules so that they vest in four equal parts on each
of their first four service anniversaries, starting in 2014 and ending in
2017.

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. In
a PhaseI clinical trial in Pelizaeus-Merzbacher disease (PMD), a fatal
myelination disorder in children, the Company has shown preliminary evidence
of progressive and durable donor-derived myelination in all four patients
transplanted with HuCNS-SC cells.The Company is also conducting a Phase I/II
clinical trial in chronic spinal cord injury in Switzerland and has reported
positive interim data for the first three patients.The Company has also
initiated a Phase I/II clinical trial in dry age-related macular degeneration
(AMD), and is pursuing preclinical studies in Alzheimer's disease. StemCells
also markets stem cell research products, including media and reagents, under
the SC Proven® brand.Further information about StemCells is available at
http://www.stemcellsinc.com.

Apart from statements of historical fact, the text of this press release
constitutes forward-looking statements within the meaning of the Securities
Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended,
and is subject to the safe harbors created therein.These statements include,
but are not limited to, statements regarding the timing and prospect of
initiating a Phase II clinical trial in PMD and concluding the Company's
on-going trials in spinal cord injury and AMD; the Company's ability to
successfully execute its product development activities; and the future
business operations of the Company. 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 the fact
that additional trials will be required to demonstrate the safety and efficacy
of the Company's HuCNS-SC cells for the treatment of any disease or disorder;
uncertainty as to whether the FDA, Health Canada or other applicable
regulatory agencies will permit the Company to continue clinical testing in
spinal cord injury, AMD or in future clinical trials of proposed therapies for
other diseases or conditions; uncertainties regarding the Company's ability to
obtain the increased capital resources needed to continue its current and
planned research and development operations; uncertainty as to whether
HuCNS-SC cells and any products that may be generated in the future in the
Company's cell-based programs will prove safe and clinically effective and not
cause tumors or other adverse side effects; uncertainties regarding the
Company's ability to commercialize a therapeutic product and its ability to
successfully compete with other products on the market; and other factors that
are described under the heading "Risk Factors" in the Company's Annual Report
on Form 10-K for the year ended December 31, 2012, and in its subsequent
reports on Form 10-Q and Form 8-K.

CONTACT: Rodney Young
         StemCells, Inc.
         Chief Financial Officer
         (510) 456-4128
        
         Ian Stone
         Russo Partners
         (619) 308-6541

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