Re Agreement

ReNeuron Group plc
18 April 2006



ReNeuron enters into cell supply agreement with StemCells, Inc.

Guildford, UK, 18 April 2006:  ReNeuron Group plc (LSE: RENE.L) today announces
that it has entered into a further agreement with StemCells, Inc. ('StemCells'),
a leading US, NASDAQ-quoted adult stem cell development company.  The agreement
provides for ReNeuron to supply StemCells with cell lines generated using
ReNeuron's proprietary c-mycERTAM human stem cell immortalisation technology,
for use in StemCells' areas of therapeutic focus.  These cell lines will be
produced to standards appropriate for clinical and commercial use, such as GMP
(Good Manufacturing Practice) and US GTP (Good Tissue Practice).  ReNeuron will
derive a commercial return from the supply of these cell lines to StemCells.

This agreement builds on the existing cross-licence between the two companies
signed in July 2005, whereby StemCells gave ReNeuron exclusive access to
StemCells' adult neural stem cell patent estate for the development of
ReNeuron's own c-mycER(TAM) neural stem cell therapies, and ReNeuron gave
StemCells exclusive access to that c-mycER(TAM) technology for use in the
development of therapies for certain diseases targeted by StemCells.

Michael Hunt, Chief Executive Officer of ReNeuron, said:

'This agreement is a logical extension of the cross-license we signed with
StemCells last year, and plays to ReNeuron's key strength - the ability of its
platform c-mycER(TAM) technology to generate clinical-grade cell line candidates
that meet all appropriate regulatory requirements regarding their production.
We are delighted to be consolidating further our strong links with StemCells via
the provision of high quality cell lines to them, from which ReNeuron gains a
valuable near-term revenue stream.'

Martin McGlynn, President and Chief Executive Officer of StemCells, said:

'The assurance of a supply of c-mycER(TAM) cells reinforces the value of the
underlying license agreement between ReNeuron and StemCells.  Our primary focus
continues to be on the development of unmodified human neural stem cell products
for conditions affecting the central nervous system.  The ReNeuron technology
may prove to be an important alternative therapy for some of our disease
targets, and we look forward to a very productive relationship with ReNeuron.'




Enquiries:


ReNeuron                                             Tel: [phone]
John Sinden, Chief Scientific Officer
Michael Hunt, Chief Executive Officer

Financial Dynamics
David Yates                                          Tel: [phone]
Anna Keeble



Notes to Editors

About ReNeuron Group plc

ReNeuron is a leading, UK-based adult stem cell therapy business.  The Company
is applying its novel stem cell platform technologies in the development of
ground-breaking stem cell therapies to serve significant and unmet or poorly-met
clinical needs.

ReNeuron has used its c-mycER(TAM) technology to generate genetically stable
neural stem cell lines.  This technology platform has multi-national patent
protection and is fully regulated by means of a chemically-induced safety
switch.  Cell growth can therefore be completely arrested prior to in vivo
implantation.

The Company's lead stem cell therapy, ReN001 for chronic stroke disability, is
in late pre-clinical development.  Subject to successful completion of
pre-clinical testing, the Company plans to file for approval to commence initial
clinical trials in stroke later this year, with trials commencing as soon as
possible thereafter.

The Company has also generated pre-clinical efficacy data with its ReN005 stem
cell therapy for Huntington's disease, a rare, genetic and fatal
neurodegenerative disorder which affects around 1 in 100,000 people.  This
programme is in pre-clinical development.

In addition to its stroke and Huntington's disease programmes, ReNeuron is
developing stem cell therapies for Parkinson's disease, Type 1 diabetes and
diseases of the retina.

ReNeuron has also leveraged its stem cell technologies into non-therapeutic
areas - its ReNcell range of cell lines for use in drug discovery applications
in the pharmaceutical industry.

ReNeuron's shares are traded on the London AIM market under the symbol RENE.L,
and its warrants are traded under the symbol RENW.L.

Further information on ReNeuron and its products can be found at
www.reneuron.com.

About Stemcells, Inc.

StemCells, Inc. is a clinical stage biotechnology company focused on the
discovery, development and commercialization of stem cell-based therapeutics to
treat diseases of the 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. StemCells is the first company
to directly identify and isolate human neural stem cells from normal brain
tissue. These stem cells are expandable into cell banks for therapeutic use,
which demonstrates the feasibility of using normal, non-genetically modified
cells as cell-based therapies. StemCells is a publicly traded company solely
focused on stem cell research and development and has approximately 40 U.S. and
100 non-U.S. patents. Further information about the Company is available on its
web site at: www.stemcellsinc.com.

This announcement contains forward-looking statements with respect to the
financial condition, results of operations and business achievements/performance
of ReNeuron and certain of the plans and objectives of management of ReNeuron
with respect thereto. These statements may generally, but not always, be
identified by the use of words such as 'should', 'expects', 'estimates',
'believes' or similar expressions. This announcement also contains
forward-looking statements attributed to certain third parties relating to their
estimates regarding the growth of markets and demand for products. By their
nature, forward-looking statements involve risk and uncertainty because they
reflect ReNeuron's current expectations and assumptions as to future events and
circumstances that may not prove accurate.  A number of factors could cause
ReNeuron's actual financial condition, results of operations and business
achievements/performance to differ materially from the estimates made or implied
in such forward-looking statements and, accordingly, reliance should not be
placed on such statements.

The terms 'ReNeuron' or 'the Company' refer to ReNeuron Group plc and its
subsidiary undertakings.




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