International Stem Cell Corporation Announces $25 Million Common Stock Financing Agreement

International Stem Cell Corporation (OTCBB:ISCO),www.internationalstemcell.com, announced today that it had entered into an agreement with Aspire Capital Fund, LLC, to provide, at the Company's sole option, up to $25 million of equity capital over the next three years. As part of this transaction, Aspire purchased, upon execution of the agreement, 333,333 shares of ISCO Common Stock at a price of $1.50 per share, a 7% premium over Friday's closing price of $1.40 per share.

Pricing of future sales under the agreement will be determined each time the Company elects to sell shares to Aspire by a formula that is based on the actual sale prices of the Company's stock over the 12 days preceding each sale to Aspire. Thus, the Company will control the timing and amount of any sales of its Common Stock to Aspire, and will always know at the time it gives a notice of sale what the cost of that round of financing will be.

Aspire has no right to require any sales by the Company, but is obligated to make purchases as the Company directs in accordance with the purchase agreement, and the Company has the right to terminate the agreement at any time. The agreement does not restrict other financings by the Company. A more detailed description of the transaction agreements with Aspire is set forth in the Company's current report on Form 8-K, filed today with the U.S. Securities and Exchange Commission.

Ray Wood, Chief Financial Officer of ISCO, commented on the agreement, "This transaction is designed to provide both a source of working capital and maximum flexibility for the Company in determining the pricing and timing of any future financing it elects to use under this agreement. It provides us with access to capital that we believe will be adequate to fund our research activities for an extended period of time, but does not preclude us from pursuing additional financing during the term of the agreement. Because of the pricing flexibility this facility gives us, we believe that this agreement will provide both the lowest cost of capital currently available, plus maximum flexibility in meeting our future financing needs. If we don't need working capital or don't need as much as expected, we may elect not to use the facility. If we do need capital, it is available and we can choose when to obtain it."

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB)

International Stem Cell Corporation is a California-based biotechnology company focused on therapeutic and research products. ISCO's core technology, parthenogenesis, results in creation of pluripotent humanstem cells from unfertilized oocytes (eggs). These proprietary cells avoid ethical issues associated with use or destruction of viable human embryosand, unlike most other major stem cell types, can be immune matched and be a source of therapeutic cells with minimal rejection after transplantation into hundreds of millions of individuals of differing racial groups. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary, Lifeline Cell Technology, and has developed and is now marketing a line of skin care products via its subsidiary, Lifeline Skin Care. ISCO is advancing novel human stem cell-based therapies where cells have been proven to be efficacious but traditional small molecule and protein therapeutics have not. More information is available on ISCO's website, www.internationalstemcell.com.

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ABOUT ASPIRE CAPITAL FUND, LLC

Aspire Capital Fund, LLC is an institutional investor based in Chicago,Illinois, with a fundamental investment approach. Aspire Capital invests in a wide range of companies and industries emphasizing life sciences, energy and technology.

FORWARD-LOOKING STATEMENTS

Statements pertaining to financing plans and capital needs, anticipatedtechnological developments and therapeutic applications, the potential benefits of opportunities for the company and its subsidiaries, 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," "should," "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, 760-940-6383
kaldrich@intlstemcell.com
or
Ray Wood, CFO, 760-640-6383
rwood@intlstemcell.com