International Stem Cell Corporation Demonst rates Progress in the Use of Immune Matched

Human Parthenogenetic Stem Cells to Promote the Development of Therapies for Diabetes
and Liver Disease s

International Stem Cell Corporation (OTCBB:ISCO), www.internationalstemcell.com, together with

colleagues from ViaCyte (formerly Novocell), announced the successful derivation from its human
parthenogenetic stem cells (hpSCs) of enriched cultures of definitive endoderm (DE). DE can be
further developed into pancreas or liver cells. These new results create a platform for the development
by ISCO of therapeutic products that have great potential to overcome the problem of rejection of
transplanted cells by the patient's own immune system.

The results are described in a new article that will appear in Differentiation, the official journal of the
International Society of Differentiation, published by Elsevier. The article concludes that, "Creation of
the definitive endoderm lineages from hpSC represents the critical first step toward the development
of hpSC-based cellular therapies for diseases of the liver or pancreas."
The article also describes improvement in an earlier published differentiation protocol. This new
method extends ISCO's portfolio of intellectual property, demonstrating for the first time that the pre-
treatment of undifferentiated cells by trichostatin A (TSA) significantly improves the efficacy of the
differentiation procedure.

"This work represents a step forward in our ability to direct the differentiation of hpSCs to cell
populations of sufficient purity for their eventual use to produce commercially viable populations of
endoderm lineage cells such as liver and pancreas," said Nikolay Turovets, PhD, ISCO's Director of
Research and Therapeutic Development, and the paper's co-author.
The published work was carried out in collaboration with scientists from ViaCyte, a leader in the direct
differentiation of pluripotent stem cells toward definitive endoderm and pancreatic cells. The ViaCyte
team was led by Dr. Baetge, currently Director of the Nestlé Institute of Health Sciences S.A.,
Lausanne, Switzerland, and Dr. D'Amour, ViaCyte's Director of Stem Cell Biology, both pioneers in the
development of endoderm from human embryonic stem cells.

Andrey Semechkin, PhD, ISCO's CEO and the paper's co-author, said: "The fact that hpSC could be
differentiated into progenitors of pancreatic and liver cells have now become a proven scientific fact.
This data establishes hpSCs as a useful source of starting material in stem-cell based technologies and
demonstrates excellent progress in therapeutic research."

According to earlier published scientific data, the most efficient method for deriving pancreatic and
liver cells from human pluripotent stem cells is a method of direct differentiation that utilizes
treatment of the stem cell cultures by specific signals directing differentiation toward particular
lineages. Therefore it is extremely important that stem cells used for the differentiation process are
able to respond to such signaling. Dr. Semechkin commented, "In this published paper we report for
the first time that hpSCs can respond to well characterized differentiation signals. Moreover, we
demonstrate that these unique cells respond to similar signaling factors and demonstrate gene
expression dynamics and transitions that simulate properties of DE differentiation during vertebrate
development and closely follow differentiation of human embryonic stem cells to DE. These data are
extremely important as they demonstrate that hpSCs have therapeutic potential; however,
parthenogenetic stem cells have an additional benefit of superior immune-matching capabilities and
don't pose the same ethical questions associated with embryonic stem cells."
The Abstract of the paper is available on the Elsevier web site. The title of the paper is: "Human
parthenogenetic stem cells produce enriched populations of definitive endoderm cells after trichostatin
A pretreatment."

Full text article can be obtained upon request to corresponding author, Nikolay Turovets,
PhD: nturovets@intlstemcell.com.

Additional information regarding ISCO's therapeutic projects is available on the ISCO

website:http://www.internationalstemcell.com/therapeutics.htm.

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB):

International Stem Cell Corporation is a California-based biotechnology company focused on the
therapeutic applications of human parthenogenetic stem cells and the development and
commercialization of cell-based research and cosmetic products. ISCO's core technology,
parthenogenesis, results in creation of pluripotent human stem cells from unfertilized oocytes (eggs).
hpSCs avoid ethical issues associated with the use or destruction of viable human embryos. ISCO
scientists have created the first parthenogenic, homozygous stem cell line that can be a source of
therapeutic cells with minimal immune rejection after transplantation into hundreds of millions of
individuals of differing sexes, ages and racial groups. This offers the potential to create the first true
stem cell bank, UniStemCell™, while avoiding the ethical issue of using fertilized eggs. ISCO also
produces and markets specialized cells and growth media for therapeutic research worldwide through
its subsidiary Lifeline Cell Technology and cell-based skin care products through its subsidiary Lifeline
Skin Care. More information is available at ISCO's website, www.internationalstemcell.com.

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Key Words: Stem Cells, Biotechnology, Parthenogenesis