ISCO Enters into an Agreement with Cytograft Tissue Engineering to Develop a Therapeutic Medium for Cytograft's Living Vascular Grafts

Living Laboratory Grown Blood Vessels from the Patient's Own Cells

International Stem Cell Corporation (OTCBB:ISCO) (www.intlstemcell.com), the first company to perfect a method of creating human "parthenogenetic" stem cells, which are derived from unfertilized human eggs, is working with tissue engineers at Cytograft Tissue Engineering, (Novato, CA), to design a custom cell culture medium to cultivate living human vascular grafts; grafts which are expected to be used in future human clinical trials.

Cytograft's living human product, called Lifeline™ (trade-name not associated with Lifeline Cell Technology), is a promising technology that will be used as a coronary graft for coronary bypass procedures, as a peripheral graft to prevent lower limb amputations and as a living tissue shunt for hemodialysis patients.

The new medium will be developed and produced by scientists at ISCO's wholly-owned subsidiary, Lifeline Cell Technology®, a producer of human cells and media products.

"It is an honor that Cytograft chose Lifeline Cell Technology's team to develop their medium. Their process of growing human vascular grafts promises to be a vast improvement over synthetic materials. Since the grafts are grown using the patient's own cells, they will minimize the chance of immune rejection, infection and disease transmission," said Jeffrey Janus, CEO of Lifeline Cell Technology.

According to Todd McAllister PhD, CEO of Cytograft, "The team at Lifeline Cell Technologies is uniquely qualified to develop and design custom media formulations for our application. They clearly have one of the best scientific teams in the field, and, importantly, have a service based business model that has been flexible and responsive to our specific requirements."

International Stem Cell Corporation (ISCO.OB) 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. These "parthenogenetic" stem cells 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. Lifeline Cell Technology develops and manufactures human cell culture products for research into human disease and toxicology. These products consist of human cells and low-serum or serum-free media to grow the cells.

For more news and information on International Stem Cell Corporation please visit www.IRGnews.com/coi/ISCO where you can find the CEO's video, a fact sheet on the company, investor presentations, and more.

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.
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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, CEO760-940-6383kaldrich@intlstemcell.com
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Jeffrey Janus, President760-940-6383jjanus@intlstemcell.com
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The Investor Relations Group212-825-3210Investor Relations:Adam S. Holdsworthaholdsworth@investorrelationsgroup.com
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Media Relations:Laura Colontrellelcolontrelle@investorrelationsgroup.com