StemCells, Inc. Announces Move to Expanded Facilities, Board Changes

SUNNYVALE, Calif. -- (BW HealthWire) -- Feb. 26, 2001 -- StemCells, Inc. (Nasdaq: STEM) announced today that the Company has entered a 5-year lease for a 40,000 square foot facility in a strategic investment to accelerate growth in stem cell research and development. The state of the art facility, located in the Stanford Research Park in Palo Alto, CA, includes extensive vivarium space as well as laboratories, offices, and a GMP (Good Manufacturing Practices) suite, signifying that the facility can be used to manufacture materials for clinical trials. The new facility will better enable the Company to achieve its goal of utilizing genetically unmodified human stem cells for the treatment of disorders of the nervous system, liver, and pancreas.

"Our expanding endeavors require more space for both research and development," said Martin McGlynn, President and CEO of StemCells, Inc. "Our research programs in neural and liver stem cells are growing, and we will now be able to bring our pancreatic stem cell program in house, rather than relying solely on collaborative work performed elsewhere. As the Company progresses toward the development phase of our neural program, the GMP suite, which is suitable for process development and pilot scale manufacturing of stem cells, will be invaluable."

The Company also announced that McGlynn, who became President and CEO of StemCells, Inc. on January 15, 2001, has been appointed to the Company's Board of Directors as of February 6, 2001. "We welcome Martin to the Board of Directors," commented John Schwartz, Chairman of the Board. "His strong management experience in executive positions in the pharmaceutical industry enhances the Board's composition, and will benefit the Company and the shareholders."

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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., ("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 necessary for regulatory approvals; the fact that the Company's stem cell technology is at the pre-clinical stage and has not yet led to the development of any proposed product; the uncertainty whether any products that may be generated in the future in the Company's stem cell programs will prove clinically effective and not cause tumors or other side effects; the uncertainty whether the Company will achieve revenues from product sales or become profitable; and others that are 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.
Martin McGlynn,President and CEO, 408/731-8670
or
Susan E. Atkins & Associates
Anette Breindl, 858/860-0266