StemCells Announces Change in Board of Directors

PALO ALTO, Calif., Nov 1, 2002 /PRNewswire-FirstCall via COMTEX/ -- StemCells, Inc., (Nasdaq: STEM) announced today that Jean-Jacques Bienaime will resign from its Board of Directors effective November 1, 2002.

Mr. Bienaime has been associated with SangStat Inc. (Nasdaq: SANG), a biotechnology company headquartered in Fremont, California, most recently as President, CEO and Chairman of the Board. He has now, however, become President and CEO of Genencor International (Nasdaq: GCOR), while remaining on the Board of SangStat. Mr. Bienaime has informed StemCells that his new duties, in addition to his other commitments, do not permit him to exercise the responsibilities of the StemCells directorship as well, noting that when he joined the Board earlier this year, his move to Genencor was not anticipated.

Martin McGlynn, President and CEO, said, "In his brief time on the Board, J-J's contributions were very helpful, and we regret losing him even as we wish him well in his new endeavors."

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StemCells, Inc. uses proprietary technology to isolate, purify and expand stem or progenitor cells that are found in human tissue and which are at least committed to become the mature cells of the organ from which they were derived. StemCells' goal is to use these cells to repair or repopulate neural or other tissue that has been damaged or lost due to disease or injury. For more information about StemCells, Inc., please visit http://www.stemcellsinc.com.

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'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, pre-clinical 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 tests of transplantation, drug effects, or other phenomena conducted in animal models will accurately predict results in humans; the uncertainty whether 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."

SOURCE StemCells, Inc.

CONTACT: Martin McGlynn, President & CEO of StemCells, Inc., +1-650-475-3100, ext 108; Media - Brad Miles of BMC Communications Group, +1-212-477-9007, ext. 17