StemCells, Inc. Sells Modex Therapeutics, Ltd. Shares

SUNNYVALE, Calif. -- (BW HealthWire) -- Jan. 10, 2001 -- StemCells, Inc. (Nasdaq: STEM) announced today that it has sold a portion of their investment in the Swiss company, Modex Therapeutics, Ltd. (SWX New Market: MDXN).

StemCells, Inc. is part of a group of pre-IPO shareholders that participated in a secondary offering of shares by Modex to international institutional investors. StemCells, Inc. sold 22,631 shares at a net price of 182.00 CHF (Swiss francs) per share. This translates to approximately $2.5 million US. StemCells, Inc. and the other selling shareholders have agreed to an additional lock-up period of three months on their remaining shares from the date of the secondary offering.

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StemCells, 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.

Statements in this press release other than statements of historical facts constitute forward looking statements regarding, among other things, the future business operations of StemCells, Inc., or of StemCells California, Inc., its wholly-owned subsidiary (collectively, "the Company"). The Company's actual results may vary materially from those contemplated in the forward looking statements due to risks and uncertainties to which the Company is subject, including uncertainties regarding the Company's ability to obtain the capital resources needed to conduct the research, preclinical development and clinical trials required to develop products and obtain regulatory approvals; the fact that the Company's stem cell technology is at the preclinical stage and has not yet led to the development of any proposed product; the risk that any products that may be generated in the future in the Company's stem cell programs may not prove clinically safe or effective or may cause tumors or other adverse side effects; the uncertainty whether the Company will achieve revenues from product sales or become profitable; and other risks and uncertainties described in Exhibit 99 to the Company's Annual Report on Form 10-K entitled "Cautionary Factors Relevant to Forward Looking Statements."

CONTACT:
StemCells, Inc.
George Koshy, 408/731-8670, ext. 137
or
Susan E. Atkins & Associates
Anette Breindl, 858/860-0266