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Preclinical Proof-of-Concept Data for the Company`s Neural Stem Cells Published
in Cell Stem Cell


PALO ALTO, Calif.--(Business Wire)--
StemCells, Inc. (NASDAQ:STEM) today announced the publication of preclinical
data demonstrating for the first time that transplantation of its proprietary,
purified human neural stem cells delays the loss of motor function in a mouse
model of infantile neuronal ceroid lipofuscinosis (NCL). NCL, commonly referred
to as Batten disease, is a fatal neurodegenerative disorder in children. This
paper, "Neuroprotection of Host Cells by Human Central Nervous System Stem Cells
in a Mouse Model of Infantile Neuronal Ceroid Lipofuscinosis," was published
online today in the peer-reviewed journal Cell Stem Cell, and will be featured
in the September 2009 print edition.

The study highlights StemCells` novel neuroprotective approach to treating
neurodegenerative diseases and the therapeutic potential of its neural stem
cells. In this research, these cells were transplanted in a mouse model of
infantile NCL and compared to a control (non-transplanted) group. The results
demonstrate that the transplanted cells engraft, migrate throughout the brain
and continuously secrete the missing lysosomal enzyme characteristic of NCL,
which is needed to process cellular waste and keep neurons functioning and
healthy. Compared with the control group, the mice that received the
transplanted neural stem cells showed statistically significant reduction in
cellular waste build-up, protection of critical host neurons and delayed loss of
motor function.

"These exciting results suggest the prospect for improving the quality of life
in patients suffering from NCL, and provide additional preclinical support for
the development of our neural stem cells in this disease," stated Stephen Huhn
MD, FACS, FAAP, Vice President and Head of the CNS Program at StemCells, Inc.
"We are encouraged to continue our clinical development efforts with the hope of
one day achieving a breakthrough in treating neurodegenerative diseases like
NCL, which today have no cure."
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Wow, I like it! Carole