StemCells, Inc. Announces Results of Long-Term Follow-Up Study in Batten Disease

StemCells, Inc. Announces Results of Long-Term Follow-Up Study in Batten
Disease

Human Clinical Data Encompasses Five Years of Post-Transplant Safety

NEWARK, Calif., Oct. 21, 2013 (GLOBE NEWSWIRE) -- StemCells, Inc.
(Nasdaq:STEM) announced today the results of a four-year observation study in
patients with neuronal ceroid lipofuscinosis (NCL), also referred to as Batten
disease, who had been transplanted with the Company's proprietary HuCNS-SC®
cells (purified human neural stem cells) in the initial Phase I study.Key
results include long-term evidence of safety, up to five years post
transplantation, for the surgical transplantation of the HuCNS-SC cells into
multiple sites in the brain and at doses of up to one billion cells.The study
results represent the first, and thus far only, multi-year data set following
transplantation of neural stem cells into human subjects, and supports the
feasibility of the Company's approach in multiple neurological disorders.The
data will be presented today by Nathan Selden, MD, PhD, FACS, FAAP, who was
co-principal investigator in the studies, at the Congress of Neurological
Surgeons Annual Meeting in San Francisco, California.

"The NCL study enrolled patients suffering from a severe progressive
neurological disorder and the study's outcome shows that there were no
long-term safety or tolerability issues associated with the cells, the
immunosuppression regimen or the surgical procedure over the five years
following transplantation," said Dr. Selden, Campagna Chair of Pediatric
Neurosurgery at Doernbecher Children's Hospital and Oregon Health & Science
University (OHSU), and incoming President of the Congress of Neurological
Surgeons. "Our assessment of the patients' cognitive and neurological function
revealed stable scores in some tests, but the clinical outcomes were generally
consistent with the expected course of impairment associated with this
neurodegenerative disease. However, three of the six patients transplanted
with HuCNS-SC cells have now survived more than five years post-transplant,
and in a progressive neurodegenerative disorder, it is noteworthy that each
have stable quality-of-life measures."

Stephen Huhn, MD, FACS, FAAP, Vice President, CNS Clinical Research at
StemCells, Inc., added, "This was the first clinical test of our HuCNS-SC
cells.We are very pleased to have accrued significant multi-year human safety
and tolerability data for neural stem cell transplantation into the brain,
unmatched in terms of both cell dose and duration of follow up thus far in the
field. We are very grateful to all the investigators at OHSU and the families
of the patients who were part of this ground-breaking study."

Six patients were enrolled in the Company's Phase I clinical study in Batten
disease.All six were transplanted with HuCNS-SC cells and followed for twelve
months after transplantation. Five patients completed the Phase I study and
subsequently enrolled in a four-year, long-term observational study, with
three of the five surviving to the end of the four-year study. The long-term
clinical data appear to be consistent with the natural history of the disease
and conclusions about impacting the disease course cannot be made in an
open-label trial. The reported adverse events are consistent with the
underlying disease and there have been no safety concerns attributed to the
HuCNS-SC cells. Magnetic resonance imaging scans of the brain show progressive
atrophy consistent with the patient's neuropsychological performance.
Quality-of-life measures remained stable across all three surviving
patients.

The Company previously reported post-mortem evidence of engraftment, migration
and long-term survival of the HuCNS-SC cells following transplantation and the
planned cessation of immunosuppression. The data were based on examination of
the brains from three patients who expired from causes related to the
underlying disease.

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 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 trial sites in the US.In addition, the Company is
pursuing preclinical studies in Alzheimer's disease, with funding 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 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 prospect for
continued clinical development of the Company's HuCNS-SC cells in central
nervous system (CNS) disorders; and the timing and nature of data from the
Company's clinical studies in NCL.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 uncertainties with
respect to the fact that additional trials will be required to confirm the
safety and demonstrate the efficacy of the Company's HuCNS-SC cells for the
treatment of spinal cord injury, PMD or any other disease or disorder;
uncertainties about whether preliminary data in any PhaseI clinical study
will prove to be reproducible or biologically meaningful; risks whether the
FDA or other applicable regulatory agencies will permit the Company to
continue clinical testing of its HuCNS-SC cells; uncertainties about the
design of future clinical trials and whether the Company will receive the
necessary support of a clinical trial site and its institutional review board
to pursue future clinical trials in spinal cord injury, PMD, AMD, or in
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 whether data generated in clinical studies of one
disease or condition will be predictive of outcomes in other diseases or
conditions; uncertainties regarding the Company's manufacturing capabilities
given its increasing preclinical and clinical commitments; uncertainties as to
whether the Company will become profitable; and other factors that are
described under the heading "Risk Factors" disclosed in Part I, Item 1A 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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