Strategic Collaboration

Stem Cell Sciences plc
17 July 2006



For immediate release 0700                                               17.7.06

     STEM CELL SCIENCES AND NEUROSOLUTIONS ANNOUNCE STRATEGIC COLLABORATION
          Neural Stem Cells to Come of Age for Commercial Exploitation
                               in Drug Discovery


NeuroDiscovery Limited ("NeuroDiscovery"; ASX Code: NDL) and Stem Cell Sciences
plc ("SCS"; AIM code: STEM) are pleased to jointly announce today that
NeuroDiscovery's 100% UK-based subsidiary, NeuroSolutions Limited
("NeuroSolutions"), entered into a collaborative agreement with SCS for an
initial period of one year.

The collaboration aims to exploit the worldwide commercial opportunity to
provide high-value contract services to biopharmaceutical companies and to
supply them with native human neurones, validated for known ion channels and
receptors that are tuned to their drug discovery needs. The initial focus of the
collaboration will be on targets that are relevant to the future treatment of
major neurological diseases.

NeuroSolutions will provide its expertise in electrophysiology to functionally
validate and characterise the electrical properties of neurones derived from
SCS' Neural Stem (NS) cells, which SCS will make available to NeuroSolutions for
the purposes of the collaboration.

Under the collaboration, the stem cell derivation, cell growth and
differentiation skills of SCS will be combined with NeuroDiscovery's specialised
electrophysiology techniques. The companies will combine their automated cell
production and high-throughput patch-clamping equipment to produce functionally
validated cells suited for industry's current drug discovery needs. Any new
intellectual property generated pursuant to the collaboration will be owned
jointly (50:50) by both companies.

Peter Mountford, CEO of SCS commented: "It's an exciting collaboration. The
pharmaceutical industry's demand for SCS' stem cell-derived, functionally
validated neurones continues to grow and this collaboration will enable us to
further extend the range of products we can supply".

Dr Mark Treherne, Chairman of NeuroDiscovery added, "This interactive
collaboration will enable NeuroSolutions to provide an enhanced service to its
established biopharmaceutical clients but also open up new opportunities for us
to expand our service offerings, by building on our established skills in
high-throughput electrophysiology and ion channel function. ".


                                     -ENDS-


For further information please contact:

Stem Cell Sciences plc                    NeuroDiscovery
Hugh Ilyine                               David McAuliffe
VP and COO                                Executive Director
[phone]                      [phone]
[e-mail]

Weber Shandwick Square Mile
James Chandler/James White
[phone]


Background Information

About Stem Cell Sciences plc
Stem Cell Sciences plc is a global biotechnology company focused on the
development and application of stem cell technologies in biopharmaceutical
research and cell-based therapies. The Company has established a leading
intellectual property (IP) and technology portfolio that enables the commercial
application of stem cells in pharmaceutical/biotechnology drug discovery and
development, providing the Company with an early-stage revenue stream. In the
longer term, the Company is developing regenerative, cell-based therapies.

SCS operates as a group of independent operations with laboratories in Scotland,
Japan and Australia, each of which is affiliated with an academic centre of
excellence. These include the Institute of Stem Cell Research, Edinburgh, UK;
RIKEN Centre for Development Biology, Kobe, Japan and the Australian Stem Cell
Centre, Melbourne, Australia.

Stem Cell Sciences listed on the London AIM exchange on 18th July 2005 (AIM:
STEM).  For further information on the company visit www.stemcellsciences.com

About NeuroDiscovery
NeuroDiscovery Ltd is an ASX listed neurology research and development company
which owns 100% of NeuroSolutions Ltd (ASX Code NDL). For further information
visit www.neurodiscoveryltd.com.

About NeuroSolutions
NeuroSolutions Limited is a profitable service company, applying its broad
expertise and drug discovery platforms to become a leading provider of
specialised electrophysiological assays to the biopharmaceutical industry.
Electrophysiology is a specialised technique which is used to record electrical
activity in membranes, cells or tissues. NeuroSolutions current clients include
many other established pharmaceutical and biotechnology companies.

In parallel to running its service business, the Company is also exploiting its
in house technologies and expertise for its own internal R&D and has a mature
pipeline of programmes underway for the treatment of pain. During 2006 and 2007
the company intends to commence a Phase I and II clinical trial on its lead
compound NSL-043 in partnership with Sosei Co Ltd.




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