NS Cell Technology licensee

Stem Cell Sciences plc
16 August 2005

                                                                  16 August 2005



  Stem Cell Sciences to commercialise breakthrough neural stem cell technology



Stem Cell Sciences plc ("SCS"), the Edinburgh based stem cell company which
recently listed on the Alternative Investment Market, is pleased to announce its
exclusive license to new patented technology to derive and grow neural stem
cells.



This announcement follows the publication this week of a unique technique for
growing brain cells from neural stem cells, published by SCS's collaborating
academic researchers at the Universities of Edinburgh and Milan. The discovery
has been assisted by financing through the EuroStemCell Framework VI program, a
world-leading consortium of European research institutes and companies.



Dr Peter Mountford, CEO of SCS said: "Being able to grow pure brain cells is an
exciting prospect for the Company. SCS sees new business opportunities in both
cell-based drug discovery and cell-based therapies for neurological disorders".



Expanding on Dr. Mountford's comments, Dr Tim Allsopp, Chief Science Officer of
SCS added: "The remarkable stability and purity of the cells is something unique
in the field of tissue stem cells and a great step forward.  We have already had
a number of approaches from pharmaceutical companies interested in using these
cells to test and develop new drugs, and are looking forward to working with
them to further develop and license the technology".



Cell based discovery is becoming increasingly mainstream in the pharmaceutical
industry as it provides better information about new drug candidates than other
laboratory based systems.  Stem cells offer unique advantages for this discovery
and will be used increasingly as improved cell culture media and automation
brings with it higher reproducibility and lower costs.



Dr Mountford commented:  "A further significant benefit from this new technology
is that it can lead to reduced need for animal testing in drug development -
something which is welcomed by the public, governments and industry alike".



The EuroStemCell project financed by the European Union and linking European
academic researchers with industry participants has been designed to accelerate
the 'research to commercialisation' pathway. This new discovery represents some
of the first fruits of this high calibre collaboration.



Notes to Editors:



Stem Cell Sciences plc was founded in 1994 to commercialise the work of
Professor Austin Smith and Dr Peter Mountford at the University of Edinburgh.
In 2000 Stem Cell Sciences UK was established, followed by Stem Cell Sciences KK
Japan in April 2002 with the objective of collaborative research with the RIKEN
Centre for Developmental Biology (RIKEN CDB) in Kobe, Japan.  In July 2003, with
the incorporation of Stem Cell Sciences Holdings in Scotland, Edinburgh became
the Group's headquarters.



On 18 July 2005, Stem Cell Sciences listed on the London Stock Exchange's
Alternative Investment Market (AIM) under the code STEM).



EuroStemCell is an Integrated Project of the European Union's Sixth Framework
Programme and will receive up to Euro11.9 million in funding from the EU. The 24
participating laboratories are from Scotland, England, Sweden, France, Denmark,
Italy Germany and Switzerland. They comprise universities, research institutes
and 3 biotechnology companies. EuroStemCell's mission is to build the scientific
foundations required to take stem cell technology to the clinic. Further
information on EuroStemCell is available at www.eurostemcell.org



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.



Neural stem cells are stem cells found in the brain which have the ability to
make all the different cells of the nervous system: neurons, astrocytes (one of
the large neuroglia cells of neural tissues) and oligodendrocytes (cells that
provide insulation to nerve cells by forming a myelin sheath around axons).





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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