NeoStem to Receive $700,000 from the U.S. Army's Medical Research and Materiel Command to Advance Adult Stem Cell Therapies in Treating Traumatic Wounds

NEW YORK, July 12 /PRNewswire-Asia-FirstCall/ -- NeoStem, Inc. (NYSE Amex: NBS) ("NeoStem" or the "Company"), an international biopharmaceutical company with operations in the U.S. and China, today announced that it has been awarded a $700,000 contract from the U.S. Army Medical Research and Materiel Command, Telemedicine and Advanced Technology Research Center (USAMRMC-TATRC) under U.S. Army Medical Research Acquisition Activity contract number: (W81XWH-10-2-0039). This contract is for the purpose of evaluating the use of topically applied bone marrow-derived adult mesenchymal stem cells (MSCs) for rapid wound healing. The Company previously announced that this funding was included in the Department of Defense FY09 Appropriations Bill and will begin receiving funds to initiate the program in 2010.

"NeoStem is thrilled to have the United States Government's support to advance our technology and is honored to become part of TATRC's regenerative medicine portfolio. It is our goal with this important project to leverage adult stem cell technology to help our soldiers avoid amputations and immobilization from injuries that they may sustain while fighting for our country. We understand the urgent need to improve regenerative medicine capabilities and reach ultimate medical solutions. Wound healing could represent just the beginning of more collaborative projects involving other clinical indications, such as spinal cord injuries and retinal damage, both of which affect American warriors who serve our country in the global war on terrorism," said Robin Smith, M.D., Chairman of the Board and Chief Executive Officer of NeoStem. "These federal monies will allow us to intensify our efforts to expand the potential impact of adult stem cells, including very small embryonic-like stem cells for which we have an exclusive license, in wound healing and other areas of regenerative medicine in general in an effort to improve tissue repair and decrease overall medical costs," she continued.

Vincent Falanga, M.D., F.A.C.P., Professor, Boston University School of Medicine and Chairman and Program Director at Roger Williams Medical Center, who is to be Co-Principal Investigator for this study, endorsed Dr. Smith's statement adding, "Adult mesenchymal stem cells (MSCs) and very small embryonic-like (VSEL) stem cells can be harvested with relative ease from individuals. Our studies indicate that an individual's own (autologous) stem cells can be highly successful in healing wounded tissues and in regenerative processes. Together with the wound delivery methods we have developed, these stem cells could bring about a quantum step forward in the way we treat non- healing chronic wounds and many types of injuries, both in the civilian and military population."

About USAMRMC

The USAMRMC is responsible for medical research, development, and acquisition and medical logistics management to establish and maintain the capabilities the Army needs to fight and win on the battlefield. For more information, please visit: https://mrmc-www.army.mil/

About TATRC

TATRC performs medical reconnaissance and special operations to address critical gaps that are underrepresented in DoD medical research programs and, among other objectives, aims to invest in and manage research projects and programs that will benefit service members with traumatic injuries by restoring them to fullest possible function. For more information, please visit: http://www.tatrc.org/?p=home

About NeoStem, Inc.

NeoStem, Inc. is engaged in the development of stem cell-based therapies and building of a network of adult stem cell collection centers in the U.S. and China that are focused on enabling people to donate and store their own (autologous) stem cells for their personal use in times of future medical need. The Company is also the licensee of various stem cell technologies, including a worldwide exclusive license to VSEL(TM) Technology which uses very small embryonic-like stem cells, shown to have several physical characteristics that are generally found in embryonic stem cells, and is pursuing the licensing of other technologies for therapeutic use. NeoStem's majority-controlled Chinese pharmaceutical operation, Suzhou Erye, manufactures and distributes generic antibiotics in China. For more information, please visit: http://www.neostem.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Forward looking statements include the future of VSEL(TM) Technology and adult stem cells as a viable treatment option and whether any government funding will be available for any future projects, about which no assurances can be given. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the "Risk Factors" described in the Company's prospectus filed with the Securities and Exchange Commission on June 28, 2010 under Rule 424(b)(5), as well as other periodic filings made with the Securities and Exchange Commission. The Company's further development is highly dependent on future medical and research developments and market acceptance, which is outside its control.

The views, opinions and/or findings contained in this press release are those of the Company and do not necessarily reflect the views of the Department of Defense and should not be construed as an official DoD/Army position, policy or decision unless so designated by other documentation. No official endorsement should be made.

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SOURCE NeoStem, Inc.