Agreement with MRF

Stem Cell Sciences plc
30 January 2008



Press Release

  Stem Cell Sciences Enters Agreement with Myelin Repair Foundation to Develop
                Sustainable Cell Sources for CNS Drug Discovery
                         ("Stem Cell Sciences", "SCS")

30th January 2008

Stem Cell Sciences plc (AIM:STEM, ASX:STC) has entered an agreement with the
Myelin Repair Foundation (MRF, Saratoga, CA) for the development of techniques
that will lead to scalable and sustainable sources of uniform human brain cells
for research, target validation and drug discovery assays. Being able to utilise
human brain cells would be a significant step forward to confirm results from
animal research experiments in demonstrating the relevance of any new drug
therapy for CNS disorders.

Under the terms of the agreement, researchers at the MRF-supported Human Neural
Assay Center, located at Case Western Reserve University (Cleveland, Ohio), will
optimise sustainable methods for culturing SCS' human neural stem (NS) cells and
subsequent differentiation into the three principal cell types normally found in
the brain: neurons, oligodendrocytes and astrocytes.  Historically, access to
primary human brain tissue suitable for cell culture has been extremely limited
and tissue that was available has been difficult to sustain in culture.  Using
human NS cells overcomes this problem by providing a constant, dependable and
unlimited source of brain cells.

Through this collaboration the parties expect to develop new methods and
materials that can be readily utilised by the entire neuroscience community. SCS
has the right to first negotiation on commercialising any new products resulting
from this collaboration. Utilising human brain cells in place of animal cells at
an initial research stage eliminates the genetic variation between species and
may significantly improve the relevancy of results in early-stage drug
discovery.

"The inherent limitations of animal models in all disease research have been a
source of considerable frustration to scientists and those involved in
commercial drug discovery," says MRF Chief Operating Officer Russell Bromley.
"The inability to achieve concordance between the results achieved in animal
models and humans is one of the most common reasons for the failure to advance
even the most promising drug targets into commercial development and patient
treatments," says Bromley.

"SCS recognises the vision of MRF in developing a robust method based on our NS
cells that will ensure increased relevance of early-stage investigations and
assessing their therapeutic potential," says SCS Chief Scientific Officer Tim
Allsopp. "It is exciting to participate in such important scientific work, which
we hope will have a significant, lasting impact.

"We are delighted to partner with SCS to accomplish our goal of developing and
licensing commercially viable drug targets that will lead to myelin repair
treatments for multiple sclerosis," Bromley added. "Equally important, however,
this is a partnership that could bear fruit for research on all diseases of the
CNS."

                                    - Ends -

For further information, please contact:

Stem Cell Sciences plc (United Kingdom)               Myelin Repair Foundation
Alastair Riddell CEO                                  Carol Menaker
Tim Allsopp, Chief Scientific Officer                 + 1 408 871 2410
[phone]                                    [e-mail]

Halsin Partners (United Kingdom)
Michael Sinclair, Director
[phone]

Talk Biotech (Australia)
Fay Weston
[phone]

Stem Cell Sciences llc (USA)
George Murphy, Vice President Business Development
[phone]

Notes to Editors
Stem Cell Sciences plc (SCS, AIM:STEM, ASX:STC) is a global biotechnology
company providing the biological infrastructure of cells and cell culture media
to the burgeoning stem cell research market.

Stem Cell Sciences' core objective is to develop safe and effective cell-based
therapies for currently incurable diseases. SCS retains all rights to its
technology for therapeutic use and is targeting cell-based therapies for
neurodegenerative disease and injury.

Revenues from Stem Cell Sciences' research business are delivered via an
integrated network of business teams and regional offices in Edinburgh and
Cambridge (UK), Melbourne (Australia) and San Francisco (USA). This global reach
provides the Company with the direct access to markets through experienced
personnel and local business networks needed to drive SCS business growth in
each region.

The key challenge for the successful application of stem cells in both research
and clinical applications is the reproducible supply of pure, fully
characterised stem cells and stem cell-derived specialised cells such as nerves
and muscle. This represents a significant technological challenge that will
require access to multiple technologies and a globally integrated stem cell
initiative.

To access cutting edge technologies on a rapid and on-going basis, Stem Cell
Sciences has built an exceptional network of highly interactive collaborations
with academic centres of excellence in the stem cell field. These collaborations
have been the source of our founding technologies and continue to provide an
expanding pipeline of products and intellectual property that are central to the
Company's strategy and success.

To facilitate research and technology transfer with its major collaborating
academic institutions, Stem Cell Sciences' business and scientific teams are
usually co-located on site or adjacent to the centre of excellence in
independent company facilities. The Company's key collaborating institutes
include the Wellcome Trust Centre for Stem Cell Research (University of
Cambridge), the Institute of Stem Cell Research (University of Edinburgh), RIKEN
Centre for Developmental Biology (Kobe) and the Australian Stem Cell Centre
(Melbourne).

Academic and commercial use of stem cells in basic research and drug discovery
provides the Company with immediate and growing revenue streams and offsets the
cost of technology development for full scale cell production of SCS cell-based
therapeutics.

For further information on the company please visit: www.stemcellsciences.com

The Myelin Repair Foundation (MRF) - http://www.myelinrepair.org - is a
non-profit medical research foundation dedicated to accelerating basic medical
research and its translation into myelin repair treatments that will
dramatically improve the lives of people suffering from multiple sclerosis (MS).
Many believe MRF's Accelerated Research CollaborationTM model could change the
way in which all medical research is done.



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