Cellular Biomedicine Group Reports Second Quarter and First Half 2014 Financial Results and Provides Business Highlights

Cellular Biomedicine Group Reports Second Quarter and First Half 2014
Financial Results and Provides Business Highlights

PALO ALTO, Calif., Aug. 14, 2014 (GLOBE NEWSWIRE) -- Cellular Biomedicine
Group Inc. (Nasdaq:CBMG) (the "Company"), a biomedicine firm engaged in the
development of new treatments for degenerative and cancerous diseases, today
reported financial results for the three and six months ended June 30, 2014
and provided business highlights including the six-month data from its Phase
I/IIa clinical trial for ReJoin^TM treatment for Knee Osteoarthritis (KOA).

Dr. William (Wei) Cao, Chief Executive Officer of Cellular Biomedicine Group,
commented, "We are very excited about the progress we have made so far this
year with our lead product candidate ReJoin^TM for Knee Osteoarthritis,
especially withthePhase IIa six-month follow-up MRI data. The IIa
twelve-month follow-up MRI testhas been completed and final analysis will be
available inthethirdquarterof this year.All patients in the Phase IIb
trial completedtreatment in July.  We grew our Intellectual Property
portfolio to41 patents in various stages of approvalin China, U.S. and PCT,
including 12granted China patents. We are excited about our recent
announcement to add new potentialreduced time-to-commercialization TCR cancer
immunotherapy to our technology platform."

Financial Results

Cellular Biomedicine Group reported a net loss for the three and six months
ended June 30, 2014 of $6.7 million, or $0.85 loss per share and $7.1 million,
or $0.93 loss per share, respectively, compared to a net loss of $2.5 million,
or $0.44 loss per share, and $7.9 million, or $1.52 loss per share, for the
same periods a year ago.The increase in net loss of $4.2 million for the
three months ended June 30, 2014 compared to the same period in 2013 is
related to one-time costs incurred, including impairment of goodwill and
employee severance, for the discontinuation of the Consulting segment. The
decrease in net loss of $0.8 million for the six months ended June 30, 2014
compared to the same period in 2013 is due to one-time merger expenses
incurred in 2013, partially offset by the costs of discontinuing the
Consulting segment.

General and administrative expenses for the three months ended June 30, 2014
increased $0.1 million compared to the same period in 2013. The six months
ended June 30, 2014 decreased $2.7 million as compared to the same period in
2013, mainly from the costs related to merger activities incurred in 2013.

Research and development expense, depreciation and amortization expense
remained relatively unchanged for the three and six months ended June 30, 2014
and 2013.Other income changed minimally as compared to prior periods for rent
subsidy.

As of June 30, 2014, the Company had $13.6 million in cash and cash
equivalents. For the six months ended June 30, 2014, cash used for operations
was $4.7 million compared to $4.6 million for the same period in 2013.

Business Highlights

During and since the second quarter of 2014, Cellular Biomedicine Group
strengthened its position as a leading pure-play biotechnology company from
China by achieving the following milestones and significant corporate events:

  *Released positive six-month data from Phase I/IIa Clinical Trial for
    ReJoin^TMtreatment of Knee Osteoarthritis (KOA), which MRI testing
    revealed an increase in cartilage volume of whole joint as early as three
    months after the therapy, and confirmed average of 53.07mm^3six months
    after the therapy.
  *Commenced Phase IIb Clinical Trial for ReJoin^TMtreatment of KOA.
  *Completed patient enrollment for Phase IIb Clinical Trial for
    ReJoin^TMtreatment of KOA.
  *Launched pre-clinical study on human adipose derived mesenchymal
    progenitor cell (haMPC) therapy for asthma.
  *Strengthened the Company's IP portfolio with the addition of one new China
    patent granted and two new international patents filed.
  *Discontinued the company's Consulting segment.
  *Commenced trading on Nasdaq Capital Market as the first pure-play cell
    therapy company from China approved for listing on Nasdaq.
  *Closed a private placement transaction for total gross proceeds of
    approximately $10 Million, the net proceeds of which will primarily be
    used for ongoing clinical trials, working capital and potential
    acquisitions of strategic assets.
  *Announced the proposed acquisition of Agreen Biotech Co., Ltd.China and
    its founder's U.S. patent for $3.28 million in cash and the issuance of
    753,522 shares of CBMG common stock and the issuance of 75,000 shares of
    CBMG common stock.The proposed acquisition would include Intellectual
    Property ("IP"), assets and talents of this cancer-therapy focused
    developmental stage company.The IP is comprised of T Cells Receptor
    ("TCR") clonality analysis technology and T Central Memory Cell (Tcm) and
    Dendritic Cell ("DC") preparation methodologies.

Commenting on the results, Tony (Bizuo) Liu, Chief Financial Officer of
Cellular Biomedicine Group said, "The recent successful private placement of
$10 million and our decision to discontinue the Consulting segment has allowed
us to prioritize the Company's resources on pursuing pure cell therapy R&D and
further clinical trials.We believe the continued acquisitions of cutting edge
technologies and talents will position CBMG as a leader in both stem cell and
immune cell technologies in China.We look forward to keeping our shareholders
apprised of new developments."

About Cellular Biomedicine Group

Cellular Biomedicine Group, Inc. develops proprietary cell therapies for the
treatment of certain degenerative diseases and cancers. Our developmental
stem cell, progenitor cell, and immune cell projects are the result of
research and development by scientists and doctors fromChinaandthe United
States. Our flagship GMP facility, consisting of eight independent cell
production lines, is designed, certified and managed according to U.S.
standards. To learn more about CBMG, please visit: www.CellBioMedGroup.com

Forward-Looking Statements

Statements in this press release relating to plans, strategies, trends,
specific activities or investments, and other statements that are not
descriptions of historical facts may be forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking information is inherently
subject to risks and uncertainties, and actual results could differ materially
from those currently anticipated due to a number of factors, which include,
but are not limited to, risk factors inherent in doing business.
Forward-looking statements may be identified by terms such as "may," "will,"
"expects," "plans," "intends," "estimates," "potential," or "continue," or
similar terms or the negative of these terms. Although CBMG believes the
expectations reflected in the forward-looking statements are reasonable, they
cannot guarantee that future results, levels of activity, performance or
achievements will be obtained. CBMG does not have any obligation to update
these forward-looking statements other than as required by law.

CELLULAR BIOMEDICINE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS
                                                            
                  For the Three Months Ended    For the Six Months Ended
                  June 30,                      June 30,
                  2014           2013           2014           2013
                                               
Net sales and                                                
revenue:
Biomedical         $118,069     $--         $179,120     $--
Total sales and    118,069       --           179,120       --
revenue
                                                            
Operating                                                    
expenses:
Cost of sales      51,953        --           92,553        --
General and        1,719,316     1,578,653     3,101,828     5,758,402
administrative
Selling and        44,136        46,552        65,495        52,230
marketing
Research and       642,830       639,276       1,140,977     1,119,781
development
Total operating    2,458,235     2,264,481     4,400,853     6,930,413
expenses
Operating loss     (2,340,166)   (2,264,481)   (4,221,733)   (6,930,413)
Other income:                                                
Interest income    341           560           565           872
Other income       74,480        22,611        94,617        16,540
Total other        74,821        23,171        95,182        17,412
income
Loss from
continuing         (2,265,345)   (2,241,310)   (4,126,551)   (6,913,001)
operations before
taxes
Income tax         --           --           --           --
provision
Loss from
continuing         (2,265,345)   (2,241,310)   (4,126,551)   (6,913,001)
operations
                                                            
Loss from
discontinued       (4,408,918)   (263,204)     (2,994,243)   (1,007,558)
Consulting segment
Income tax benefit --           --           --           --
Loss on
discontinued       (4,408,918)   (263,204)     (2,994,243)   (1,007,558)
operations
Net loss           $(6,674,263) $(2,504,514) $(7,120,794) $(7,920,559)
Other
comprehensive                                                
loss:
Cumulative
translation        4,978         31,959        (6,835)       31,959
adjustment
Unrecognized gain
(loss) on          4,042,797     (112,253)     3,521,349     (734,573)
investments
Comprehensive loss $(2,626,488) $(2,584,808) $(3,606,280) $(8,623,173)
                                                            
Earnings per share
for continuing                                               
operations:
Basic              $(0.29)      $(0.39)      $(0.54)      $(1.33)
Diluted            $(0.29)      $(0.39)      $(0.54)      $(1.33)
Earnings per share
discontinued                                                 
operations:
Basic              $(0.56)      $(0.05)      $(0.39)      $(0.19)
Diluted            $(0.56)      $(0.05)      $(0.39)      $(0.19)
Earnings per share                                           
net loss:
Basic              $(0.85)      $(0.44)      $(0.93)      $(1.52)
Diluted            $(0.85)      $(0.44)      $(0.93)      $(1.52)
                                                            
Weighted average
common shares                                                
outstanding:
Basic              7,829,314      5,719,075      7,660,974      5,196,583
Diluted            7,829,314      5,719,075      7,660,974      5,196,583




CELLULAR BIOMEDICINE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                  June 30,      December 31,
                                                  2014          2013
                                                               
Assets                                                          
Cash and cash equivalents                          $13,563,521 $7,175,215
Accounts receivable                                24,000       10,581
Other receivable                                   63,069       78,521
Inventory                                          156,490      119,119
Prepaid expenses                                   437,473      191,572
Total current assets                               14,244,553   7,575,008
                                                               
Investments                                       10,224,177   5,105,891
Property, plant and equipment, net                 819,912      1,014,805
Goodwill                                           --           3,299,566
Intangibles, net                                   419,599      601,456
Long-term prepaid expenses and other assets        498,888      --
Total assets (1)                                   $26,207,129 $17,596,726
Liabilities and Stockholders' Equity
Liabilities:                                                    
Accounts payable                                   $109,097    $213,891
Accrued expenses                                   1,071,606    503,717
Advances payable to related party                  34,471       67,999
Other current liabilities                          1,305,066    1,416,046
Total current liabilities                          2,520,240    2,201,653
Total liabilities (1)                              2,520,240    2,201,653
Stockholders' equity:                                           
Preferred stock, par value $.001, 50,000,000
shares authorized; none issued and outstanding as  --          --
of June 30, 2014 and December 31, 2013,
respectively
Common stock, par value $.001, 300,000,000 shares
authorized; 9,074,068 and 7,382,797 issued and     9,074        7,383
outstanding as of June 30, 2014 and December 31,
2013, respectively
Additional paid in capital                         49,757,998   37,861,593
Accumulated deficit                                (29,536,773) (22,415,979)
Accumulated other comprehensive income (loss)      3,456,590    (57,924)
Total stockholders' equity                         23,686,889   15,395,073
Total liabilities and stockholders' equity         $26,207,129 $17,596,726



CELLULAR BIOMEDICINE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                              
                                                For the Six Months Ended
                                                June 30,
                                                2014           2013
                                                
CASH FLOWS FROM OPERATING ACTIVITIES:                          
Net loss                                         $(7,120,794) $(7,920,559)
Adjustments to reconcile net loss to net cash                  
used in operating activities:
Depreciation and amortization                    437,015       425,578
Loss on disposal of assets                       10,358        --
Stock based compensation expense                 612,622       710,402
Amortization of deferred stock compensation      63,518        337,217
Common stock issued for services                 --           1,844,155
Impairment of goodwill                           3,299,566     --
Loss recognized in excess of cash received on    5,913         69,071
disposition of investment stock
Value of stock received for services             (1,610,000)   --
Deferred tax                                    --           (14,783)
Changes in operating assets and liabilities:                   
Accounts receivables                             (13,419)      20,683
Investments                                     7,150         --
Other receivables                                15,452        (38,104)
Inventory                                        (37,371)      6,802
Prepaid expenses and other assets                (245,901)     (154,994)
Long-term prepaid expenses and other assets      (498,888)     14,802
Accounts payables                                (104,794)     (16,704)
Other current liabilities                        (110,980)     (149,048)
Accrued expenses                                 567,889       254,944
Net cash used in operating activities            (4,722,664)   (4,610,538)
                                                              
CASH FLOWS FROM INVESTING ACTIVITIES:                          
Acquisition of business, net of cash acquired    --           2,568,995
Proceeds from the sale of assets                 --           10,071
Purchases of intangibles                         --           (12,880)
Purchases of assets                              (77,537)      (52,465)
Net cash (used in) provided by investing         (77,537)      2,513,721
activities
                                                              
CASH FLOWS FROM FINANCING ACTIVITIES:                          
Proceeds from the issuance of common stock       11,221,956    --
Repayment of advances from affiliate             (33,528)      (1,250)
Net cash provided by (used in) financing         11,188,428    (1,250)
activities
                                                              
EFFECT OF EXCHANGE RATE CHANGES ON CASH          79            13,319
                                                              
INCREASE (DECREASE) IN CASH                      6,388,306     (2,084,748)
CASH, BEGINNING OF PERIOD                        7,175,215     4,144,896
CASH, END OF PERIOD                              $13,563,521  $2,060,148
                                                              
SUPPLEMENTAL CASH FLOW INFORMATION                             
                                                              
Non cash financing and investing activities:                   
Issuance of company stock for accrued            $--         $149,475
liabilities and advances
Issuance of stock for services                   $--         $1,844,155

CONTACT: Sarah Kelly
         Director of Corporate Communications, CBMG
         +1 650 566-5064
         sarah.kelly@cellbiomedgroup.com
        
         Vivian Chen
         Managing Director Investor Relations, Grayling
         +1 646-284-9427
         vivian.chen@grayling.com

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