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

WallSt TV Interviews Kenneth Aldrich

International Stem Cell Corporation Partners with Absorption Systems to Commercialize Human Stem Cell-Derived Corneal Tissue for Drug Testing

International Stem Cell Corporation (OTCBB:ISCO (www.internationalstemcell.com), the first company to perfect a method of creating human "parthenogenetic" stem cells from unfertilized eggs, has formed a partnership with Absorption Systems to utilize ISCO's parthenogenetic stem cell-derived human corneal tissue to measure drug disposition, drug safety and drug-drug interactions. The collaboration between the companies is focused on using Absorption Systems' know how in creating in vitro assay systems to develop a superior method of testing drugs that will also reduce the use of laboratory animals currently necessary for such tests.

In the past, researchers have grown corneal cells in the laboratory, but ISCO is believed to be the only company to grow a self-assembling corneal construct suitable for toxicity testing in the laboratory and possibly suitable for corneal transplants. ISCO's corneal constructs include cell layers and structures normally found in a human cornea, as confirmed by an independent third-party laboratory. ISCO's proprietary lines of parthenogenetic stem cells remove the need for fertilized embryos and in a therapeutic setting, minimize the threat of immune rejection. This breakthrough was published in the peer-reviewed journal Cloning & Stem Cells (Volume 9, Number 3; September 2007:432-449 and, Volume 10, Number 1; March 2008:11-24).

"The combination of ISCO's skill in culturing human parthenogenetic stem cells and Absorption Systems' proficiency in performing tissue-based assays may provide a powerful and unique drug testing model for the pharmaceutical industry and the field of ophthalmology," commented Jeffrey Janus, president of ISCO. "In addition, this work complements ISCO's effort to use its parthenogenetic stem cells to create cell transplant therapies for diseases of the eye. We plan to further develop our corneal tissue technology with a goal of routinely growing living human corneas for ultimate use in human corneal transplants."

"ISCO's corneal construct, combined with Absorption Systems' expertise in assessing drug disposition, may provide pharmaceutical and ophthalmology researchers with new insight, without the need for animal models," said Patrick M. Dentinger, president and CEO of Absorption Systems. "Absorption Systems' services yield the type of definitive data expected by the FDA, so we believe that our combined products will be of great interest to researchers studying diseases of the eye."

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.

ABOUT ABSORPTION SYSTEMS:

Founded in 1996 by Patrick Dentinger and Ismael J. Hidalgo, Ph.D., Absorption Systems, LP focuses on performing assays that can predict the Absorption, Distribution, Metabolism, and Excretion (ADME) of small molecules using a variety of in vitro, in situ, and in vivo biological models. Absorption Systems supports these assays with state-of–the-art bioanalytical capabilities and preclinical formulation services. For more information, visit: www.absorption.com

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 Announces a Manufacturing and Supply Agreement with Millipore Corporation

International Stem Cell (OTCBB:ISCO) announced today it has entered into a worldwide distribution agreement with Millipore Corporation (NYSE: MIL) to manufacture living cells and cell culture products to be sold through Millipore’s distribution network.

“To work with a company such as Millipore that has sales of over $1.5 billion and is known throughout the world is a wonderful opportunity for ISCO. This partnership will lead to a significant expansion in ISCO’s revenue generation through the manufacture of high quality cells and cell culture products. Millipore is a leader in the life science industry, with a strong sales force and distribution network serving biotechnology firms, pharmaceutical companies and laboratories around the world. The ISCO-Millipore team will provide valuable research tools for cell biologists across the world,” according to Jeffrey Janus, ISCO’s president.

International Stem Cell, an emerging stem-cell therapy company, is the first company to perfect a method of creating human stem cells from unfertilized eggs. These cells, called “parthenogenetic” stem cells promise to alleviate two critical problems inherent in cell transplantation today, immune rejection and the ethical issues associated with the use of fertilized human embryos. ISCO, through its wholly-owned subsidiary, Lifeline Cell Technology (Walkersville, MD) develops and manufactures cell culture products for research use. Such manufacturing generates revenue and therapeutic production capacity for ISCO.

“We are very excited about driving our partnership forward with ISCO,” said Don O’Neil, Millipore’s Director of Marketing for Stem Cells. “With this relationship, Millipore gains access to a world class team of scientists responsible for developing many of the 'first-in-class' specialty media products on the market. The ISCO offering perfectly compliments our strategy to become the industry leading specialty and stem cell culture complete solutions provider.”

ABOUT MILLIPORE

Millipore is a life science leader providing cutting-edge technologies, tools, and services for bioscience research and biopharmaceutical manufacturing. As a strategic partner, we collaborate with customers to confront the world's challenging human health issues. From research to development to production, our scientific expertise and innovative solutions help customers tackle their most complex problems and achieve their goals. Millipore Corporation is an S&P 500 company with more than 6,000 employees in 47 countries worldwide. Www.millipore.com

ABOUT INTERNATIONAL STEM CELL CORPORATION:

International Stem Cell is a biotechnology company currently focused on developing therapeutic and research products. In the area of therapeutic product development, ISCO's objective is to create an unlimited source of human cells for use in the treatment of several diseases, including diabetes, liver disease and retinal and corneal disease through cell transplant therapy. In furtherance of this objective, ISCO has developed pluripotent human stem cells from unfertilized human eggs, and techniques to cause those stem cells to be "differentiated" into the specific cell types required for transplant. It has developed manufacturing protocols to produce the cells minimizing contamination with animal by-products, a characteristic likely to be important in meeting U.S. Food and Drug Administration requirements. ISCO also provides the specialized cells and growth media needed for therapeutic cell transplantation research to academic and commercial researchers in related fields. For more information, visit the ISCO website at: www.internationalstemcell.com.

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