New Licence Deal - Deltagen

Stem Cell Sciences plc
05 September 2005

                                                               5 September 2005


                Stem Cell Sciences - New Licence Deal with Deltagen


Stem Cell Sciences plc - the Edinburgh based stem cell research company - has
today announced a major licensing agreement with U.S.-based Deltagen, Inc. for
use of its patented IRES technology.


In addition to an up-front licence fee of U.S.$1.2 million, the agreement
includes royalties based on revenues generated by Deltagen.  As part of the
deal, Stem Cell Sciences will receive from Deltagen selected genetically
engineered mice.


This announcement follows the recent listing of Stem Cell Sciences (STEM) on the
London Stock Exchange's Alternative Investment Market (AIM) and the subsequent
granting of expanded claims for a key patent in relation to Stem Cell Selection
in the US.  The US is a major market in Stem Cell Sciences' expansion programme.
The Deltagen agreement and the awarding of the extended patent claims in the
US increases the base for future licensing deals in the important North American
market.


Deltagen becomes the first company licensed to use Stem Cell Sciences' IRES
technology for the manufacture, sale and sub-licensing of 'knock-out' mice.  Dr
Peter Mountford, CEO of Stem Cell Sciences said; "We are very pleased to be
expanding our business in bio-medical research.  The human stem cell field is
another exciting opportunity for the company and we are looking forward to
further licensing deals for our IRES technology in this sector."


Robert Driscoll, J.D., Ph.D., Vice President of Intellectual Property & Legal
Affairs for Deltagen, Inc. said; "The granting of this licence ensures our
ability to incorporate Stem Cell Sciences' powerful IRES technology into our
full product range of knockout mouse-related materials."


NOTES TO EDITORS:


Stem cells are undifferentiated (un-specialised) cells which can divide to make
copies of themselves or differentiate (change) to become specialised cells of a
specific tissue such as neural cells or blood cells.


IRES Technology (Internal Ribosome Entry Sites Technology) is a simple but
highly versatile gene expression system used in cell-based drug screening and
animal models of human diseases.  Stem Cell Sciences hold patents over the use
of IRES technology in stem cells and animal models.


Knock-out mouse - where a mouse has been genetically engineered to be deficient
in a specific gene to enable the study of that gene's function.  This enables
the creation of model organisms for the study of drug interactions by large
pharmaceutical companies.


Stem Cell Sciences plc ("SCS") is a global biotechnology company established in
Melbourne in 1994 to undertake research on embryonic stem cell technologies.


SCS operates as a collaborative group with research laboratories in Australia,
Scotland and Japan, each of which is affiliated with an academic centre of
excellence. SCS intends to establish operations in the US in 2006.


The company's business model combines short-term revenue generating activities
with the development of a pipeline of cell-based therapies. As a result of this
approach, patients stand to benefit directly in the short term from the
application of SCS technologies to drug discovery and in the longer term through
access to cell-based therapeutics.


Stem Cell Sciences listed on the London AIM exchange on 18 July 2005 (AIM:
STEM).



Deltagen, Inc is a leading provider of drug discovery tools and services to the
biopharmaceutical industry.  Deltagen offers a suite of programs designed to
enhance the efficiency of drug discovery including access to biological models
as well as both small-molecule and secreted protein drug targets. In addition,
Deltagen offers extensive target validation data in the areas of immunology and
metabolic diseases. Deltagen's products and programs have been validated by
customers and partners such as Eli Lilly & Co., GlaxoSmithKline, Merck & Co.,
Millennium Pharmaceuticals and Pfizer.


Issued on behalf of Stem Cell Sciences plc by Trimedia Communications.  For
further information contact:



Nicky Hawkins
T: + 44 (0)131 272 2715
M: + 44 (0)7733 124052
[e-mail]



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