StemCells, Inc. Announces Closing of $18.6 Million Public Offering

StemCells, Inc. Announces Closing of $18.6 Million Public Offering

Terminates $30 Million Equity Purchase Agreement With Lincoln Park Capital

NEWARK, Calif., Oct. 8, 2013 (GLOBE NEWSWIRE) -- StemCells, Inc. (Nasdaq:STEM)
today announced that it has closed its previously announced underwritten
public offering of common stock and warrants. The Company sold a total of
12,845,500 units, which includes the underwriter's full over-allotment option.
The Company sold the units at a public offering price of $1.45 per unit and
received total proceeds, net of offering expenses, underwriting discounts and
commissions, of approximately $17.3 million. Each unit sold consists of one
share of common stock, par value $.01 per share, and a warrant to purchase one
half share of common stock. The warrants have an exercise price of $1.80 per
share, are exercisable immediately, and will expire five years from the date
of issuance.

Chardan Capital Markets acted as sole bookrunner for the offering and Maxim
Group LLC acted as co-manager.

In connection with the offering, the Company terminated its $30 million equity
purchase agreement with Lincoln Park Capital.Lincoln Park Capital
participated in the offering as an investor.

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, Canada and the
United States, 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) 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.

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 expected amount
and use of net proceeds; and the prospect for continued clinical development
of the Company's HuCNS-SC cells in CNS disorders.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;
uncertainties regarding the Company's ability to obtain the increased capital
resources needed to continue its current and planned research and development
operations; 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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