CytoTherapeutics, Inc. Announces Name Change to StemCells, Inc.

SUNNYVALE, Calif. -- (BW HealthWire) -- May 24, 2000 -- CytoTherapeutics (Nasdaq:CTII) announced today the Company's shareholders voted at its annual meeting to change the name of the Company to StemCells, Inc. The Company has applied to the NASDAQ National Market for its common stock to be traded under the ticker symbol "STEM." To avoid confusion, the name of the Company's wholly owned subsidiary, formerly StemCells, Inc., was changed to StemCells California, Inc. in April 2000. The name change will be effective upon the filing of a certificate of amendment to the Company's certificate of incorporation with the State of Delaware. Wednesday, May 24, will be the last day the Company's stock will trade as CTII. Beginning Thursday, May 25, it will trade as STEM.

"The Company feels that the name StemCells, Inc. better reflects the new focus of the business," explained George Dunbar, Acting President and CEO of StemCells, Inc. "We are now concentrating exclusively on the discovery, development and commercialization of our platform stem cell technologies to treat disease. In the past year, we have undergone a transition and restructuring of the Company. Our current research, development and product plans all focus on stem and progenitor cells, we have sold our former encapsulated cell technology, relocated from Rhode Island to Sunnyvale, and consolidated our business operations with our wholly owned subsidiary, StemCells California, Inc. As a leading stem cell company, our identity was no longer adequately reflected by the name CytoTherapeutics."

The name change will not affect the validity or transferability of any of the Company's currently outstanding stock certificates.

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CytoTherapeutics, Inc. is a biotechnology company focused on the discovery, development and commercialization of stem cell-based therapies to treat diseases of the central nervous system, liver, and pancreas. The Company's stem cell programs seek to repair or repopulate neural or other tissue that has been damaged or lost as a result of disease or injury.

CONTACT: StemCells, Inc.

	George Dunbar, Acting President and CEO, (408) 731-8670
    or
    IR PR Strategies, LLC
    Anette Breindl (media), (858) 860-0266