International Stem Cell Corporation: Note From The CEO Andrey Semechkin

"Since releasing our press release this morning announcing that ISCO.OB had successfully created enriched cell cultures that might be used to treat diabetes or liver disease, people have asked, 'What does that really mean?’

The simple answer is that it further proves ISCO’s Parthenogenetic stem cells can do the same things that can be done with embryonic stem cells, but without raising the ethical issues of using cells from fertilized embryos and with a real chance to solve one of the toughest problems in cell therapy—how do you keep the human body from rejecting a cell transplant before the transplant can treat the disease.

Scientists already know that they can treat liver disease and diabetes with human cells. The problems have been to find an ethical supply of cells in sufficient quantity and prevent the body from rejecting those cells. We think this is a major step toward the pathway and it enables ISCO to stand on the shoulders of 10 years of prior research to reach the next rung of the ladder to a cure for both of these life threatening diseases.

ISCO’s latest press release reflects a major step in the direction of treating diabetes and liver disease with its cells."

International Stem Cell Corporation Demonstrates Progress in the Use of Immune Matched Human Parthenogenetic Stem Cells to Promote the Development...

International Stem Cell Corporation Demonstrates Progress in the Use of Immune Matched Human Parthenogenetic Stem Cells to Promote the Development of Therapies for Diabetes and Liver Diseases

International Stem Cell Corporation (OTCBB:ISCO), www.internationalstemcell.com, together with colleagues from ViaCyte (formerly Novocell), announced the successful derivation from its human parthenogenetic stem cells (hpSCs) of enriched cultures of definitive endoderm (DE). DE can be further developed into pancreas or liver cells. These new results create a platform for the development by ISCO of therapeutic products that have great potential to overcome the problem of rejection of transplanted cells by the patient's own immune system.

The results are described in a new article that will appear in Differentiation, the official journal of the International Society of Differentiation, published by Elsevier. The article concludes that, "Creation of the definitive endoderm lineages from hpSC represents the critical first step toward the development of hpSC-based cellular therapies for diseases of the liver or pancreas."

The article also describes improvement in an earlier published differentiation protocol. This new method extends ISCO's portfolio of intellectual property, demonstrating for the first time that the pre-treatment of undifferentiated cells by trichostatin A (TSA) significantly improves the efficacy of the differentiation procedure.

"This work represents a step forward in our ability to direct the differentiation of hpSCs to cell populations of sufficient purity for their eventual use to produce commercially viable populations of endoderm lineage cells such as liver and pancreas," said Nikolay Turovets, PhD, ISCO's Director of Research and Therapeutic Development, and the paper's co-author.

The published work was carried out in collaboration with scientists from ViaCyte, a leader in the direct differentiation of pluripotent stem cells toward definitive endoderm and pancreatic cells. The ViaCyte team was led by Dr. Baetge, currently Director of the Nestlé Institute of Health Sciences S.A., Lausanne, Switzerland, and Dr. D'Amour, ViaCyte's Director of Stem Cell Biology, both pioneers in the development of endoderm from human embryonic stem cells.

Andrey Semechkin, PhD, ISCO's CEO and the paper's co-author, said: "The fact that hpSC could be differentiated into progenitors of pancreatic and liver cells have now become a proven scientific fact. This data establishes hpSCs as a useful source of starting material in stem-cell based technologies and demonstrates excellent progress in therapeutic research."

According to earlier published scientific data, the most efficient method for deriving pancreatic and liver cells from human pluripotent stem cells is a method of direct differentiation that utilizes treatment of the stem cell cultures by specific signals directing differentiation toward particular lineages. Therefore it is extremely important that stem cells used for the differentiation process are able to respond to such signaling. Dr. Semechkin commented, "In this published paper we report for the first time that hpSCs can respond to well characterized differentiation signals. Moreover, we demonstrate that these unique cells respond to similar signaling factors and demonstrate gene expression dynamics and transitions that simulate properties of DE differentiation during vertebrate development and closely follow differentiation of human embryonic stem cells to DE. These data are extremely important as they demonstrate that hpSCs have therapeutic potential; however, parthenogenetic stem cells have an additional benefit of superior immune-matching capabilities and don't pose the same ethical questions associated with embryonic stem cells."

The Abstract of the paper is available on the Elsevier web site. The title of the paper is: "Human parthenogenetic stem cells produce enriched populations of definitive endoderm cells after trichostatin A pretreatment."

Full text article can be obtained upon request to corresponding author, Nikolay Turovets, PhD: nturovets@intlstemcell.com.

Additional information regarding ISCO's therapeutic projects is available on the ISCO website:http://www.internationalstemcell.com/therapeutics.htm.

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB):

International Stem Cell Corporation is a California-based biotechnology company focused on the therapeutic applications of human parthenogenetic stem cells and the development and commercialization of cell-based research and cosmetic products. ISCO's core technology, parthenogenesis, results in creation of pluripotent human stem cells from unfertilized oocytes (eggs). hpSCs avoid ethical issues associated with the use or destruction of viable human embryos. ISCO scientists have created the first parthenogenic, homozygous stem cell line that can be a source of therapeutic cells with minimal immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. This offers the potential to create the first true stem cell bank, UniStemCell™, while avoiding the ethical issue of using fertilized eggs. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary Lifeline Cell Technology and cell-based skin care products through its subsidiary Lifeline Skin Care. More information is available at ISCO's website, 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 technological developments and potential therapeutic applications, and other 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," "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
Nikolay Turovets, PhD
nturovets@intlstemcell.com

International Stem Cell Corporation Arranges $ 3 Million Equity Financing

OCEANSIDE, Calif.–(BUSINESS WIRE)–International Stem Cell Corporation (OTCBB: ISCO - News) has entered into a subscription agreement with an accredited investor to sell three million dollars ($3,000,000) of Series C Preferred Stock at a price of $1.00 per share. The funding is to occur in three tranches. The first, for $700,000, closed August 20, 2008. The second closing for $1,300,000 is scheduled for September 23, 2008 and the final closing of $1,000,000 is scheduled for December 15, 2008, subject to determination by the investor that no material adverse event has occurred. The investor will be entitled to one of the Company’s seven board seats. Each $1.00 share of Series C Preferred will be convertible into shares of common stock at $0.25 per share, subject to antidilution provisions if the company subsequently issues shares at a lower price. The Series C Preferred has priority over the Common Stock on any sale or liquidation of the Company and a preference before any dividend can be paid on Common Stock in any year. Each share of Series C Preferred has the same voting rights as the number of shares of Common Stock into which it is convertible.

The funds will support work towards pre-clinical trials using parthenogenetic stem cells for retinal and liver disease and diabetes; advance the construction of therapeutic cell manufacturing facilities and support ongoing operations.

“These funds will go a long way toward insuring that ISCO continues to move forward without interruption in its quest to provide the cells needed to make regenerative medicine therapies available to millions of people throughout the world,” said ISCO’s CEO, Kenneth Aldrich.

The securities were offered and sold to the investor in a private placement transaction made in reliance upon exemptions from registration pursuant to Section 4(2) under the Securities Act of 1933 and Rule 506 promulgated thereunder. The Investor is an accredited investor as defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933.

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About International Stem Cell Corporation (ISCO.OB):

International Stem Cell Corporation (ISCO) 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 also have created the first Parthenogenetic homozygous stem cell line (phSC-Hhom-4) that can be a source of therapeutic cells that will not be immune rejected after transplantation into 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.

Key Words: Stem Cells, Biotechnology, Parthenogenesis, Liver disease

Contact:

International Stem Cell Corporation
Kenneth C. Aldrich, CEO, 760-940-6383
kaldrich@intlstemcell.com
or
Jeffrey Janus, President, 760-940-6383
jjanus@intlstemcell.com
or
William Adams, Chief Financial Officer, 760-940-6383
wadams@intlstemcell.com

International Stem Cell Corporation and Novocell, Inc. Collaborate to Test Human Parthenogenetic Stem Cells for Production of Pancreatic Islet Cells

Oceanside, Calif. — [July 17, 2008]— International Stem Cell Corporation (OTCBB: ISCO) announced today a collaboration with Novocell Inc. (La Jolla, CA) to use ISCO’s human parthenogenetic stem cell lines for differentiation to Human pancreatic islet cells. The studies will be directed by Nikolay Turovets, PhD, Director, Research and Therapeutic Development at ISCO in collaboration with Novocell scientists.

ISCO’s unique stem cells offer a solution for two of the most difficult problems facing stem cell therapy. They are the first step in preventing the rejection of implanted cells by the patient’s own immune system and they provide an alternative to embryonic stem cells that does not involve destroying human embryos.

Jeffrey Janus, ISCO’s President, said, “Studies show that ISCO’s cells (called human parthenogenetic stem cells) share with conventional human embryonic stem cells the ability to differentiate into all tissue types, however they have the singular significant advantage of being immune matched at the MHC locus to hundreds of millions of people. As with immune-matched whole organs, differentiated cells obtained using these lines may provide improved transplant acceptance to large segments of the population as opposed to a few individuals. In addition, ISCO’s stem cells are created from unfertilized human eggs and do not involve the destruction of fertilized embryos.”

Novocell has developed technology to direct embryonic stem cells to become pancreatic islet cells that have been shown to be effective in treating diabetes in animals. The combined technologies of the two companies may therefore result in therapeutic cells with improved immune properties for eventual treatment of larger segments of the diabetic population.

A description of ISCO’s human parthenogenetic stem cells and their potential to improve transplantation was reported in ISCO’s peer review paper published December 19, 2007 in the online edition of Cloning and Stem Cells Journal: http://www.liebertonline.com/doi/pdfplus/10.1089/clo.2007.0063.

Elena Revazova, M.D., Ph.D., ISCO’s Chief Scientific Officer, stated, “ISCO has created a human parthenogenetic stem cell line called phSC-Hhom-4. Cells derived from this line have the potential to provide improved graft acceptance. We intend to develop additional homozygous lines that cover other major MHC types so that differentiated cell products will be better matched for transplantation into millions of individuals of differing sexes, ages and racial groups."

“Our business model,” added Mr. Kenneth Aldrich, ISCO’s Chairman and CEO, “is to make our cell lines and intellectual property easily available, and thereby become a supplier of therapeutic cells for use by patients around the world. To reach that goal, our intent is to distribute our human parthenogenetic stem cell lines to as many qualified researchers as possible so they may develop cures to as many human diseases as rapidly as possible.”

About Novocell:
Novocell, Inc. is a stem cell engineering company, with research operations in San Diego, California and Athens, Georgia, dedicated to creating, delivering and commercializing cell and drug therapies for diabetes and other chronic diseases. Novocell has three primary technologies: stem cell engineering, cell encapsulation and drug discovery. The Company was founded in 1999 and merged with CyThera, Inc. and BresaGen, Inc. in 2004. For more information, please visit www.novocell.com.

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 not be immune rejected after transplantation into 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.

Key Words: Stem Cells, Biotechnology, Parthenogenesis, Diabetes

Contacts:

International Stem Cell Corporation

Jeffrey Janus, President

janusj@lifelinecelltech.com

760-940-6383

Or

William Adams, Chief Financial Officer

wadams@intlstemcell.com

760-940-6383