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Die Meldung:

Wednesday November 1, 5:37 pm Eastern Time
Press Release
First Identification of Purified Blood Stem Cells as a Source of Mature Liver Cells Published in Nature Medicine
NEW YORK--(BW HealthWire)--Nov. 1, 2000--Scientists from StemCells, Inc., (Nasdaq: STEM - news), in an article published today in Nature Medicine disclosed data demonstrating the production of mature liver cells from rigorously purified hematopoietic (blood) stem cells in mice. Dr. Eric Lagasse, principal author of the study and Director of Liver Stem Cell Research at StemCells commented that ``this study provides the first demonstration that liver function can be restored from bone marrow cells in mice with a virulent form of liver failure and that highly purified blood stem cells can efficiently give rise to normal liver cells.``

The liver studies were conducted in collaboration with Dr. Markus Grompe at Oregon Health Sciences University; Milton Finegold of Baylor College of Medicine and Dr. Irving Weissman of Stanford University.

Bone marrow is known to contain many cell types including both mesenchymal (bone and tissue forming) and hematopoietic (blood-forming) stem cells. Different subsets of bone marrow cells were purified and each subset was tested by transplantation into mice. Only the subsets containing blood stem cells were able to produce hepatocytes. Furthermore, normal liver cells could be produced by as few as 50 of these highly purified hematopoietic stem cells. ``These remarkable results indicate that the hematopoietic stem cells are the only cells in the bone marrow responsible for the restoration of liver functions,`` added Dr. Lagasse.

The results further scientific understanding of stem cells and how they might be used in the treatment and/or cure of a variety of diseases. They offer the hope of future treatments for diseases of the liver (such as cirrhosis or hepatitis damage or genetic metabolic disorders) using blood stem cells, which are relatively easy to obtain compared to liver stem cells. If such cells came from the patients` own bone marrow, problems such as tissue rejection and the necessity for immunosuppression, which are currently encountered with organ transplants, could be avoided. Furthermore, because the blood stem cells appear more versatile than expected, the experiments reported by Dr. Lagasse and colleagues suggests that the hematopoietic stem cell may be more multipotent than previously thought.

Other stem cell programs

The Company is also presenting an update of its neural stem cell program at the upcoming Society for Neuroscience meeting in New Orleans on November 6. Dr. Nobuko Uchida, Director - Neural Stem Cell Program, will present new work on the self renewal, extensive migration, and continuous production of mature brain cells from transplanted human neural stem cells. These studies represent another step in StemCells` pre-clinical exploration of the potential for use of neural stem cell transplants in the treatment of neurodegenerative diseases.

Statements in this press release other than statements of historical facts constitute forward looking statements regarding, among other things, the Company`s research and product development activities and business operations. 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 patent rights from third parties including rights to hematopoietic stem cells, its ability to obtain the capital resources needed to conduct further research and preclinical development, and to initiate clinical trials and seek 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 obtain required regulatory approvals or 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.
George Dunbar, 408/731-8670 (acting president and CEO)
or
Susan E. Atkins & Associates
Anette Breindl, 858/860-0266

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