International Stem Cell Corporation Begins Pre-Clinical Trials on Human Corneal Epithelial Cells

Trials Designed to Improve Laser Eye Surgery Outcomes

International Stem Cell Corporation (OTCBB:ISCO), the first company to perfect a method of creating human "parthenogenetic" stem cells from unfertilized eggs, is planning pre-clinical trials aimed at applying its laboratory-grown human corneal epithelial cells to improve photorefractive keratectomy (PRK), a form of corrective laser eye surgery.

These trials are the first step toward Food and Drug Administration (FDA) clinical trials to test the efficacy of using ISCO cells to improve healing after corneal surgery, and are part of the company's efforts to increase the clinical utility of its discoveries in culturing corneal cells and tissues.

This work is being done in collaboration with Dr. Paul H. Chen, M.D., who has developed the cell transfer technology. Dr. Chen is an eye surgeon at North County Laser Eye Associates, and he is on staff at Scripps Memorial La Jolla and Scripps Encinitas Hospitals.

"This collaboration is an excellent opportunity for ISCO to use its cell culture and manufacturing expertise to create therapeutic human cells that can enter the market relatively quickly and improve patient's quality of life," said Jeffrey Janus, ISCO's president. "We are fortunate to be working with Dr. Chen on this exciting project."

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB): International Stem Cell Corporation is a California biotechnology company focused on developing therapeutic and research products. ISCO's technology, Parthenogenesis, results in the creation of pluripotent human stem cell lines from unfertilized human eggs. ISCO scientists have created the first Parthenogenetic homozygous stem cell line (phSC-Hhom-4) that can be a source of therapeutic cells that will minimize immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. These advancements offer the potential to create the first true "Stem Cell Bank" and address ethical issues by eliminating the need to use or destroy fertilized embryos. ISCO also produces and markets specialized cells and growth media worldwide for therapeutic research through its subsidiary Lifeline Cell Technology. For more information, visit the ISCO website at: www.internationalstemcell.com. To subscribe to receive ongoing corporate communications please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.

FORWARD-LOOKING STATEMENTS: Statements pertaining to anticipated future financial and/or operating results, future growth in research, technology, clinical development and potential joint venture and other opportunities for the company and its subsidiary, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update these forward-looking statements.

Key Words: Stem Cells, Biotechnology, Parthenogenesis International Stem Cell Corporation

Kenneth C. Aldrich, Chairman, CEO
kaldrich@intlstemcell.com
760-940-6383
or
Jeffrey Janus, President
jjanus@intlstemcell.com
760-940-6383
or
The Investor Relations Group
212-825-3210
Investor Relations:
Adam S. Holdsworth
aholdsworth@investorrelationsgroup.com
or
Media Relations:
Laura Colontrelle
lcolontrelle@investorrelationsgroup.com

International Stem Cell Receives Second $1M Tranche Under $5 Million Financing

International Stem Cell Corporation (OTCBB:ISCO) has received the second $1 million tranche of an anticipated private equity financing of up to $5 million to be funded over the next several months. The total amount of the financing is intended to allow the Company to move forward with its therapeutic research, including its pre-clinical trials. The money will also help retire its existing secured debt and be allocated to marketing to increase revenues in the Company's subsidiary, Lifeline Cell Technology, which makes and sells specialty cells and growth media. ISCO is the creator and developer of a new class of stem cells that remove two of the greatest barriers to the therapeutic use of stem cells: 1) immune rejection and 2) the ethical issues that surround the use of embryonic stem cells. ISCO makes its cells available to qualified researchers worldwide, and its technology, called "Parthenogenesis," results in the creation of cell lines that may allow cells from a single donor to be immune-matched to hundreds of millions of people thus reducing the dangers of immune rejection. For more information, visit the ISCO website at: www.internationalstemcell.com. To subscribe to receive ongoing corporate communications please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0. ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB): International Stem Cell Corporation is a California biotechnology company focused on developing therapeutic and research products. ISCO's technology, Parthenogenesis, results in the creation of pluripotent human stem cell linesStem Cell Bank" and address ethical issues by eliminating the need to use or destroy fertilized embryos. ISCO also produces and markets specialized cells and growth media worldwide for therapeutic research through its subsidiary Lifeline Cell Technology. For more information, visit the ISCO website at: www.internationalstemcell.com. from unfertilized human eggs. ISCO scientists have created the first Parthenogenetic homozygous stem cell line (phSC-Hhom-4) that can be a source of therapeutic cells that will minimize immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. These advancements offer the potential to create the first true " FORWARD-LOOKING STATEMENTS: Statements pertaining to anticipated future financial and/or operating results, future growth in research, technology, clinical development and potential joint venture and other opportunities for the company and its subsidiary, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates,") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update these forward-looking statements. International Stem Cell Corporation Kenneth C. Aldrich, Chairman, CEO kaldrich@intlstemcell.com 760-940-6383 or William Adams, Chief Financial Officer wadams@intlstemcell.com 760-940-6383 or The Investor Relations Group 212-825-3210 Investor Relations: Adam S. Holdsworth aholdsworth@investorrelationsgroup.com or Media Relations: Laura Colontrelle lcolontrelle@investorrelationsgroup.com

International Stem Cell Research

ISCO has developed a process to derive stem cells similar to Embryonic Stem Cells without the need for fertilized embryos and with minimal exposure to non-human cells. These factors provide ISC a unique leadership role in the field of regenerative cell therapy.

International Stem Cell Begins Pre-Clinical Testing Of Its Parthenogenetic Stem Cells For Treatment Of Retinal Disease

OCEANSIDE, Calif., Jan 13, 2009 (BUSINESS WIRE) -- International Stem Cell Corporation (OTCBB: ISCO) has created layered human tissue from its unique parthenogenetic stem cells and transplanted this tissue into animals in pre-clinical trials to establish a potential new treatment for human retinal diseases, such as macular degeneration or retinitis pigmentosa.

"Intact layers of retinal progenitor cells have been shown to restore lost visual responses in several retinal degeneration rodent models," said Dr. Hans Keirstead, Co-Director of the Sue and Bill Gross Stem Cell Research Center at the University of California, Irvine. "Thus, we are developing intact retinal layers derived from International Stem Cell's human parthenogenetic stem cells which could become a sustainable, FDA-approved therapeutic supply for patients with retinal degenerative diseases."

ISCO's human parthenogenetic stem cells have the potential to treat human disease yet possess key medical and ethical advantages over other kinds of stem cell products. They can be matched to common immune types and thus reduce the chance of transplant rejection among large segments of the population. Because they are created from unfertilized human eggs, they do not require the destruction of human embryos.

"We are aggressively pushing forward safe treatments for human diseases using parthenogenetic stem cells," said Jeffrey Janus, President of International Stem Cell. "If we are successful in this work, our next step is to manufacture this layered human tissue for further tests, including human trials. This illustrates the strengths of combining scientific collaborations with outside researchers such as Dr. Keirstead with ISCO's science and cell manufacturing expertise."

For more information, visit the ISCO website at: www.internationalstemcell.com.

To subscribe to receive ongoing corporate communications please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB):

International Stem Cell Corporation is a California biotechnology company focused on developing therapeutic and research products. ISCO's technology, Parthenogenesis, results in the creation of pluripotent human stem cell lines from unfertilized human eggs. ISCO scientists have created the first Parthenogenetic homozygous stem cell line (phSC-Hhom-4) that can be a source of therapeutic cells that will minimize immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. These advancements offer the potential to create the first true "Stem Cell Bank" and address ethical issues by eliminating the need to use or destroy fertilized embryos. ISCO also produces and markets specialized cells and growth media worldwide for therapeutic research through its subsidiary Lifeline Cell Technology. For more information, visit the ISCO website at: www.internationalstemcell.com.

FORWARD-LOOKING STATEMENTS:

Statements pertaining to anticipated future financial and/or operating results, future growth in research, technology, clinical development and potential joint venture and other opportunities for the company and its subsidiary, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates,") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update these forward-looking statements.

Key Words: Stem Cells, Biotechnology, Parthenogenesis

SOURCE: International Stem Cell Corporation

International Stem Cell Corporation

Kenneth C. Aldrich, Chairman, CEO

kaldrich@intlstemcell.com

760-940-6383

or

William Adams, Chief Financial Officer

wadams@intlstemcell.com

760-940-6383

or

The Investor Relations Group

212-825-3210

Investor Relations:

Adam S. Holdsworth

or

Media Relations:

Laura Colontrelle

lcolontrelle@investorrelationsgroup.com

International Stem Cell Corporation Discusses Recent Funding

International Stem Cell Corporation (OTCBB:ISCO) announced on December 30 that it had received the first $1 million tranche of an anticipated private equity financing of up to $5 million to be funded over the next several months. Officials of the Company commented today on the significance of that funding.

"This is a first major step toward the Company's goal of becoming financially self-sufficient," said Kenneth Aldrich, CEO of the Company. Mr. Aldrich noted that the anticipated $5 million of funding is targeted toward three objectives: (1) eliminating $1 million of outstanding secured debt; (2) supporting critical first quarter pre-clinical trials that could be instrumental in enabling corporate joint venture financing; and (3) providing marketing and expansion capital designed to increase revenues from the Company's "Lifeline" subsidiary, which makes and sells specialty cells and growth media.

"Although additional financing will be needed in 2009 to reach our goal, we believe our Lifeline subsidiary has the ability to bring the company to profitability within 2 years and support the clinical research of the company thereafter," said Jeffrey Janus, President and Chief Operating Officer of ISCO and CEO of its Lifeline subsidiary.

The current financing is in the form of a new class of Convertible Preferred Stock, convertible into common stock at $0.25/share. The new Preferred Stock carries an initial dividend of 10% per annum, reducing to 6% in two years, payable quarterly. The sale of the Preferred is scheduled to close on the following schedule: (1) $1,000,000 was funded December 30, 2008; (2) subject to determination by the Investors that there has been no material adverse event with respect to the Company, $1,000,000 will be funded February 5, 2009; and (3) at the Investors' discretion, three additional tranches of $1,000,000 each will be funded on March 20, 2009, June 30, 2009 and September 20, 2009. "Because our Investors will be actively involved with current management in operating the company, with opportunity to participate in all critical decisions, we expect that all tranches will be funded as scheduled," said Mr. Aldrich.

Pursuant to the terms of the financing agreement, on December 30, 2008 the Company appointed Mr. Andrei Semechkin (as the designee of the holders of Series D Preferred) to the Board of Directors for a term that expires at the next annual meeting of stockholders, and entered into an Employment Agreement with Mr. Semechkin. Because the financing agreement provides for the size of the Board to remain at seven directors, Mr. Edward O. Hunter resigned from the Board, but will continue to serve the Company as a member of the Company's Financial Advisory Board.

"Mr. Semechkin will add extensive business and international experience to our Board, and, although we will greatly miss Mr. Hunter's direct participation on the Board itself, his willingness to maintain a high level of involvement with the Company will mean we have not lost the benefit of his experience and wisdom," said Mr. Aldrich.

Further details are available in the Company's Form 8-K to be filed with the SEC January 5, 2009.

ISCO is the creator and developer of a new class of stem cells that remove two of the greatest barriers to the therapeutic use of stem cells: 1) immune rejection and 2) the ethical issues that surround the use of embryonic stem cells. ISCO makes its cells available to qualified researchers worldwide, and its technology, called "Parthenogenesis", results in the creation of cell lines that may allow cells to be matched to hundreds of millions of people without destroying a viable human embryo.

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB):

International Stem Cell Corporation is a California biotechnology company focused on developing therapeutic and research products. ISCO's technology, Parthenogenesis, results in the creation of pluripotent human stem cell lines from unfertilized human eggs. ISCO scientists have created the first Parthenogenetic homozygous stem cell line (phSC-Hhom-4) that can be a source of therapeutic cells that will minimize immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. These advancements offer the potential to create the first true "Stem Cell Bank" and address ethical issues by eliminating the need to use or destroy fertilized embryos. ISCO also produces and markets specialized cells and growth media worldwide for therapeutic research through its subsidiary Lifeline Cell Technology. For more information, visit the ISCO website at: www.internationalstemcell.com.

To subscribe to receive ongoing corporate communications please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.

FORWARD-LOOKING STATEMENTS:

Statements pertaining to anticipated future financial and/or operating results, future growth in research, technology, clinical development and potential joint venture and other opportunities for the company and its subsidiary, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates,") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update these forward-looking statements.

International Stem Cell Corporation
Kenneth C. Aldrich, Chairman, CEO, 760-940-6383
kaldrich@intlstemcell.com
William Adams, Chief Financial Officer, 760-940-6383
wadams@intlstemcell.com
or
The Investor Relations Group
Adam S. Holdsworth, 212-825-3210 (Investor Relations)
Laura Colontrelle, 212-825-3210 (Media Relations)
lcolontrelle@investorrelationsgroup.com

International Stem Cell Corporation Closes Financing

International Stem Cell Corporation (OTCBB:ISCO) announced today that it had received the first $1 million tranche of an anticipated private equity financing of up to $5 million to be funded over the next several months. The total amount of the financing is intended to allow the Company to retire its existing secured debt and fund operations of the Company as it moves forward with planned pre-clinical trials in the first quarter of 2009. "This is an important vote of confidence by a sophisticated investor group and we believe it is a major first step on the path to making our company financially independent," said Kenneth Aldrich, CEO of the Company.

The financing is in the form of a new class of Convertible Preferred Stock, convertible into common stock at $0.25/share, a 25% premium over the closing price on the day of signing the agreement. The new Preferred Stock carries an initial dividend of 10% per annum, reducing to 6% in two years. Funding of future tranches is subject to various contingencies that will be described in more detail in the Form 8-K the Company intends to file on or before Monday, January 5.

ISCO is the creator and developer of a new class of stem cells that remove two of the greatest barriers to the therapeutic use of stem cells: 1) immune rejection and 2) the ethical issues that surround the use of embryonic stem cells. ISCO makes its cells available to qualified researchers worldwide, and its technology, called "Parthenogenesis," results in the creation of cell lines that may allow cells to be matched to hundreds of millions of people without destroying a viable human embryo.

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB):

International Stem Cell Corporation is a California biotechnology company focused on developing therapeutic and research products. ISCO's technology, Parthenogenesis, results in the creation of pluripotent human stem cell lines from unfertilized human eggs. ISCO scientists have created the first Parthenogenetic homozygous stem cell line (phSC-Hhom-4) that can be a source of therapeutic cells that will minimize immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. These advancements offer the potential to create the first true "Stem Cell Bank" and address ethical issues by eliminating the need to use or destroy fertilized embryos. ISCO also produces and markets specialized cells and growth media worldwide for therapeutic research through its subsidiary Lifeline Cell Technology. For more information, visit the ISCO website at: www.internationalstemcell.com.

To subscribe to receive ongoing corporate communications please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.

FORWARD-LOOKING STATEMENTS:

Statements pertaining to future financial and/or operating results, future growth in research, technology, clinical development and potential opportunities for the company and its subsidiary, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates,") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update these forward-looking statements.

International Stem Cell Corporation
Kenneth C. Aldrich, Chairman, CEO, 760-940-6383
kaldrich@intlstemcell.com
or
William Adams, Chief Financial Officer, 760-940-6383
wadams@intlstemcell.com
or
The Investor Relations Group, 212-825-3210
Investor Relations: Adam S. Holdsworth
or
Media Relations: Laura Colontrelle
lcolontrelle@investorrelationsgroup.com