StemCells, Inc. Acquires Seminal Neural Stem Cell Patent Portfolio

StemCells, Inc. Acquires Seminal Neural Stem Cell Patent Portfolio

NEWARK, Calif., Oct. 29, 2013 (GLOBE NEWSWIRE) -- StemCells, Inc.
(Nasdaq:STEM) today announced the acquisition of a portfolio of issued US and
Canadian patents to which it had previously held an exclusive worldwide
license. The portfolio broadly claims the manufacture and proliferation of
purified populations of human neural stem cells and their use as therapeutics
and as tools for drug discovery.The acquisition relieves the Company of all
milestone and royalty obligations under the license agreements for products
claimed by the patents, such as products derived from the Company's
proprietary HuCNS-SC® cells (purified human neural stem cells).The patents
arose from the groundbreaking research of Samuel Weiss, Ph.D., and Brent
Reynolds, Ph.D., while at the University of Calgary.As consideration for the
portfolio, the Company will issue 139,548 shares of common stock to
Neurospheres Holdings Ltd., an intellectual property holding company
affiliated with the University of Calgary.

"These Weiss and Reynolds patents have been recognized time and time again as
the seminal intellectual property pertaining to purified populations of human
neural stem cells," said Martin McGlynn, President and Chief Executive Officer
of StemCells, Inc."The potential value of these patents continues to grow in
light of the encouraging data emerging from the clinical trials of our
HuCNS-SC cells, and acquiring them outright on these terms was in the best
interests of our stockholders. 

"Moreover, we have sued a competitor, Neuralstem, Inc., for patent
infringement under six of these patents.In the litigation, four of the six
patents were submitted by Neuralstem for reexamination by the U.S. Patent and
Trademark Office.All four survived reexamination and we look forward to
having the opportunity to prove our case of infringement against Neuralstem in
court."

Key claims of the acquired patents include, among other things, cultures of
neural stem cells derived from any source, including embryonic, fetal,
juvenile, or adult tissue; compositions of matter, again regardless of the
source of the cells and regardless of whether the cells were grown in either
suspension or adherent culture or derived from induced pluripotent stem (iPS)
cell technologies.One of the acquired patents, U.S. Pat. No. 7,166,277, has a
term extending to 2024 and claims the use of human neural stem cells to
remyelinate endogenous host cells, such as to treat spinal cord injury.

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 proprietary HuCNS-SC® cells (purified human
neural stem cells) are 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.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 prospect of enforcing the
Company's intellectual property against infringers, the potential breadth and
length of patent protection in the United States or in any other geography;
the company's litigation prospects and potential recovery against Neuralstem;
and the likelihood that any of the Company's intellectual property will be
found to be valid and enforceable.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
any disease or disorder; risks whether the FDA or other applicable regulatory
agencies will permit the Company to continue clinical testing or conduct
future clinical trials; uncertainties regarding the Company's ability to
obtain the increased capital resources needed to continue its current and
planned research and development operations and to continue its ongoing
litigation against Neuralstem; uncertainties regarding the validity and
enforceability of the Company's patents; litigation uncertainties;
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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