Technology Buy-Back

Stem Cell Sciences plc
21 August 2007


             SCS Consolidates business through technology buy-back
                      
                          ("Stem Cell Sciences", "SCS")

21 August 2007

Stem Cell Sciences plc, (AIM:STEM, ASX:STC) today announced the completion of a
technology buy-back and rights exchange with Stem Cell Sciences KK (SCS KK,
Kobe) to enable each company to pursue their core business focus on a global
basis.

Under the terms of the deal, SCS plc and SCS KK exchanged territorial rights to
future cell-based therapeutic products. Under the previous arrangement both
companies owned 50% rights to the US territory for both SCS plc neural stem (NS)
cell based therapeutics and SCS KK adipose-derived stem (hMADS) cell therapies.
Under the new deal SCS plc assumes global rights, including 100% of the US
market, for all neural stem (NS) cell-based therapies and SCS KK assumes global
rights, including 100% of the US market, for SCS adipose-derived stem (hMADS)
cell based therapies. SCS plc also regains global rights for all other SCS plc
cell therapy opportunities, including embryonic stem (ES) cell based therapies.

SCS plc will also assume world-wide commercialization rights to all SCS group
products and technologies for use in basic and applied research. SCS plc will
regain rights previously held by SCS KK in Asia for an undisclosed cash fee,
although SCS KK will retain existing rights to license hMADS and NS cell
technology in Japan.

The focus of SCS plc is the commercialization of stem cell products and
technologies for use in basic and applied research and cell-based therapies in
neurological disease. The focus of SCS KK is the development of cell-based
therapies from adipose -derived stem cells (hMADS).

Commenting on the transaction Dr Peter Mountford, President and Chief Executive
Officer said "We are pleased to simplify our model to enable each company to
build on its core business interests on a global basis. A single global business
in stem cell based research and drug discovery simplifies the revenue generating
side of our business, whilst the global market opportunity in neurological
disease will help focus and protect our longer term interest in cell-based
therapies for neurological disease."

Dr Mountford added, "Japan is a power house for technology development in our
field and we maintain strong relations with all key academic scientists and
their institutions. We now directly support their programs and directly
in-license the technologies we need, such as our recent in-licensing of RIKEN's
ROCKi technology.

Kenzo Nakajima, Chief Executive Officer of SCS KK said, "We are pleased to
rationalize our business this way. We are focused exclusively on therapeutic
development and naturally it is important to us to control a global market for
these products".
                                    - Ends -

For further information, please contact:

Stem Cell Sciences plc (United Kingdom)
Hugh Ilyine, Vice President and Chief Operating Officer         [phone]

Weber Shandwick Financial
Louise Robson or Georgia Dempsey                                [phone]

Collins Stewart
Tim Mickley                                                     [phone]

Stem Cell Sciences (Australia)
Peter Mountford, President and CEO                               [phone]

Talk Biotech
Fay Weston                                                       [phone]

Stem Cell Sciences (USA)
George Murphy, Vice President Business Development               [phone]


Notes to Editors

Stem Cell Sciences plc (SCS, AIM: STEM, ASX: STC) is a global biotechnology
company providing the biological infrastructure of cells and cell culture media
to the burgeoning stem cell research market.

Stem Cell Sciences' core objective is to develop safe and effective cell-based
therapies for currently incurable diseases. SCS retains all rights to its
technology for therapeutic use and is targeting cell-based therapies for
neurodegenerative disease and injury.

Revenues from Stem Cell Sciences' research business are delivered via an
integrated network of business teams and regional offices in Edinburgh and
Cambridge (UK), Melbourne (Australia) and San Francisco (USA). This global reach
provides the Company with the direct access to markets through experienced
personnel and local business networks needed to drive SCS's business growth in
each region.

The key challenge for the successful application of stem cells in both research
and clinical applications is the reproducible supply of pure, fully
characterized stem cells and stem cell-derived specialised cells such as nerves
and muscle. This represents a significant technological challenge that will
require access to multiple technologies and a globally integrated stem cell
initiative.

To access cutting edge technologies on a rapid and on-going basis, Stem Cell
Sciences has built an exceptional network of highly interactive collaborations
with academic centres of excellence in the stem cell field. These collaborations
have been the source of our founding technologies and continue to provide an
expanding pipeline of products and intellectual property that are central to the
Company's strategy and success.

To facilitate research and technology transfer with its major collaborating
academic institutions, Stem Cell Sciences' business and scientific teams are
usually co-located on site or adjacent to the centre of excellence in
independent company facilities. The Company's key collaborating institutes
include the Wellcome Trust Centre for Stem Cell Research (University of
Cambridge), the Institute of Stem Cell Research (University of Edinburgh), RIKEN
Centre for Developmental Biology (Kobe) and the Australian Stem Cell Centre
(Melbourne).

Academic and commercial use of stem cells in basic research and drug discovery
provides the Company with immediate and growing revenue streams and offsets the
cost of technology development for full scale cell production of SCS cell-based
therapeutics.

For further information on the company please visit:
www.stemcellsciences.com




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