StemCells, Inc. Publishes Comprehensive Review of Results From HuCNS-SC Clinical Trials

StemCells, Inc. Publishes Comprehensive Review of Results From HuCNS-SC
Clinical Trials

NEWARK, Calif., Sept. 9, 2013 (GLOBE NEWSWIRE) -- StemCells, Inc.
(Nasdaq:STEM) today announced the publication of a comprehensive overview
describing the therapeutic potential and results from early clinical trials of
the Company's proprietary HuCNS-SC® product candidate (purified human neural
stem cells). The paper was published recently in Stem Cell Research & Therapy,
an international peer-reviewed journal considered to be the major forum for
translational research into stem cell therapies, and is part of a series about
clinical applications of stem cells edited by Mahendra Rao, MD, PhD, Director,
NIH Center for Regenerative Medicine.

"This review lays out the rationale and clinical translation strategy
underlying our HuCNS-SC programs in central nervous system disorders," said
Ann Tsukamoto, PhD, Executive Vice President, Scientific and Strategic
Alliances at StemCells and lead author on the paper. "As a company, we have
gone the extra mile to identify, prospectively purify and extensively
characterize the biological activity of our neural stem cells, which has
produced robust and reproducible results in a number of disease models. Our
human neural stem cells are being developed for disorders of the brain, the
spinal cord and the eye, so our results have been published in a number of
respected journals specific to each of those areas. This paper provides an
excellent summary of our data and progress to date in all areas."

Eliseo Salinas, MD, Executive Vice President and Head of Research and
Development at StemCells, added, "To our knowledge, no other cell-based
therapy has shown such robust preclinical evidence of biological effect.Our
data to date highlight the promise of HuCNS-SC cells to address a broad
spectrum of neurological disorders, as supported by our encouraging early
clinical results, and we are working diligently towards proof of principle
studies in AMD, PMD and spinal cord injury."

The overview describes the biological activity of the Company's HuCNS-SC
cells, and explains the rationale and supporting data for pursuing
neuroprotective strategies and clinical translation in a broad range of
diseases and disorders of the central nervous system.The Company's
preclinical studies have shown that the HuCNS-SC cells can:

  *protect host neurons by providing a missing enzyme in models of lysosomal
    storage disease,
  *produce myelin in models of dysmyelination,
  *restore motor function in a spinal cord injury models,
  *protect photoreceptors and preserve visual function in models of retinal
    degeneration, and
  *improve cognitive function in models relevant to Alzheimer's disease.

Based on this preclinical data, the Company is pursuing a number of disease
targets in clinical studies.

  *Published results from the Company's Phase I clinical study in
    Pelizeaus-Merzbacher disease, a rare myelination disorder, show evidence
    of de novo myelin production in patients transplanted with HuCNS-SC cells,
    and
  *Interim data from the Company's ongoing Phase I/II clinical study show
    improved sensory function in spinal cord injured patients. 

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 conducting a Phase I/II
clinical trial in chronic spinal cord injury in Switzerland and Canada and has
reported positive interim data for the first three patients.The Company is
also conducting a Phase I/II clinical trial in dry age-related macular
degeneration (AMD) at two sites in the United States. In addition, the
Company is pursuing preclinical studies in Alzheimer's disease, with support
from the California Institute for Regenerative Medicine (CIRM).  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, Swissmedic, 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 the results of the Company's preclinical studies will be replicated in
humans; 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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