Medistem Signs Commercialization Agreement for Endometrial Regenerative Cells With General Biotechnology LLC

SAN DIEGO, CA–(Marketwire – October 7, 2010) – Medistem Inc. (PINKSHEETS: MEDS) announced today it has entered into a commercialization agreement with the Indianapolis-based company, General Biotechnology LLC (http://www.gnrlbiotech.com), for sale of its universal donor Endometrial Regenerative Cells (ERC) as a research reagent to qualified academic and corporate institutions. Under the agreement General Biotechnology will harvest menstrual blood from qualified donors, isolate research-grade ERC stem cells, expand and qualify said stem cells and provide a distribution mechanism through its sales network.

“Medistem is a unique company in the area of cellular therapeutics in that its universal donor stem cells have already been used to treat humans,” said Dr. Erik Woods, President and CEO of General Biotechnology LLC. “By making these cells commercially available, scientists around the world will have the ability to compare these cells to existing adult stem cells such as placental, cord blood, and adipose mesenchymal stem cells.”

To date Medistem has reported the use of ERC in treatment of patients with Multiple Sclerosis http://www.translational-medicine.com/content/pdf/1479-5876-7-15.pdf, Duchenne Muscular Dystrophy http://www.ncbi.nlm.nih.gov/pubmed/19917503, and Heart Failure http://www.intarchmed.com/content/pdf/1755-7682-3-5.pdf.

“Since we originally reported the discovery of Endometrial Regenerative Cells in 2007, at least 4 independent groups have used and published on cells with identical or near-identical properties to treat animals with diabetes, Parkinson’s, stroke, and heart failure,” said Dr. Vladimir Bogin, Chairman and President of Medistem. “Given our intellectual property position on these cells, we are confident that by increasing their use in the scientific community we will accelerate our own development efforts, as well as advance the field forward.”

Dr. Michael Murphy, a Harvard-trained vascular surgeon who performs clinical trials using adult stem cells at Indiana University, stated, “The ERC stem cell population represents a treatment for vascular diseases that is novel, highly potent, and easy to integrate into the current standard of care. I am eager to initiate clinical investigations with these cells in treatment of critical limb ischemia.”

Dr. Murphy is the Principle Investigator for an IND filed with the FDA for treatment of critical limb ischemia with Medistem’s ERC stem cells.

About Medistem Inc.

Medistem Inc. is a biotechnology company developing technologies related to adult stem cell extraction, manipulation, and use for treating inflammatory and degenerative diseases. The company’s lead product, the endometrial regenerative cell (ERC), is a “universal donor” stem cell being developed for critical limb ischemia. A publication describing the support for use of ERC for this condition may be found at http://www.translational-medicine.com/content/pdf/1479-5876-6-45.pdf

Cautionary Statement

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of our securities. This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information. Factors which may cause actual results to differ from our forward-looking statements are discussed in our Form 10-K for the year ended December 31, 2007 as filed with the Securities and Exchange Commission.

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