Source: Reuters

Preclinical Proof-of-Concept Data for the Company`s Neural Stem Cells Published  
in Cell Stem Cell


PALO ALTO, Calif.--(Business Wire)--
StemCells, Inc. (NASDAQ:STEM) today announced the publication of preclinical
data demonstrating for the first time that transplantation of its proprietary,
purified human neural stem cells delays the loss of motor function in a mouse
model of infantile neuronal ceroid lipofuscinosis (NCL). NCL, commonly referred
to as Batten disease, is a fatal neurodegenerative disorder in children. This
paper, "Neuroprotection of Host Cells by Human Central Nervous System Stem Cells
in a Mouse Model of Infantile Neuronal Ceroid Lipofuscinosis," was published
online today in the peer-reviewed journal Cell Stem Cell, and will be featured
in the September 2009 print edition.

The study highlights StemCells` novel neuroprotective approach to treating
neurodegenerative diseases and the therapeutic potential of its neural stem
cells. In this research, these cells were transplanted in a mouse model of
infantile NCL and compared to a control (non-transplanted) group. The results
demonstrate that the transplanted cells engraft, migrate throughout the brain
and continuously secrete the missing lysosomal enzyme characteristic of NCL,
which is needed to process cellular waste and keep neurons functioning and
healthy. Compared with the control group, the mice that received the
transplanted neural stem cells showed statistically significant reduction in
cellular waste build-up, protection of critical host neurons and delayed loss of
motor function.

"These exciting results suggest the prospect for improving the quality of life
in patients suffering from NCL, and provide additional preclinical support for
the development of our neural stem cells in this disease," stated Stephen Huhn
MD, FACS, FAAP, Vice President and Head of the CNS Program at StemCells, Inc.
"We are encouraged to continue our clinical development efforts with the hope of
one day achieving a breakthrough in treating neurodegenerative diseases like
NCL, which today have no cure."

The study was conducted by researchers at StemCells, Inc., led by Nobuko Uchida,
Ph.D., Vice President of the Company`s Stem Cell Biology Program, in
collaboration with leading researchers in genetics, neurology and stem cell
biology at King`s College London, the Stanford University School of Medicine and
The Salk Institute for Biological Studies. The neural stem cells used in the
study were supplied by StemCells, Inc.

StemCells is currently testing its neural stem cell product candidate, HuCNS-SC®
cells, in clinical trials. The Company completed a Phase I trial in NCL in
January 2009, the results of which demonstrated a favorable safety profile along
with evidence of engraftment and long-term survival of the HuCNS-SC cells.
StemCells has also received approval from the U.S. Food and Drug Administration
(FDA) to initiate a Phase I trial of its HuCNS-SC cells to treat
Pelizaeus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain
that primarily affects young children.

About Neuronal Ceroid Lipofuscinosis (Batten Disease)

Neuronal ceroid lipofuscinosis (NCL) is a fatal neurodegenerative disorder that
afflicts infants and young children. The disorder, often referred to as Batten
disease, is caused by genetic mutations, and children who inherit the defective
gene are unable to produce enough of an enzyme that processes cellular waste
substances that accumulate in a part of cells known as the lysosome. Without the
enzyme, the cellular waste builds up, and eventually the cells cannot function
and die. Children with NCL appear healthy when born, but as their brain cells
die, they begin to suffer seizures and progressively lose motor skills, sight
and mental capacity. Eventually, they become blind, bedridden and unable to
communicate or function independently. There currently is no cure for the
disease. The infantile and late infantile forms of NCL are caused by different
genetic mutations. As the names imply, the two forms begin to afflict patients
at different stages of infancy, but both have similar disease progression and
outcomes.