Collaboration with REMEDI

Stem Cell Sciences plc
02 November 2006




Embargoed until 07.00                                            2 November 2006

                             Stem Cell Sciences plc

                  ("Stem Cell Sciences", "SCS" or "the Group")

Stem Cell Sciences' NS Cells to begin Preclinical Trials for Spinal Cord Injury

Stem Cell Sciences plc (AIM:STEM), the global biotechnology company focused on
the commercialisation of stem cells and stem cell technologies in research and
novel cell-based therapies, is pleased to announce that the Group's Neural Stem
Cells (NS cells) will enter preclinical testing for spinal cord injury in a
groundbreaking collaboration with the world-renowned Regenerative Medicine
Institute (REMEDI) at the National University of Ireland, Galway ("NUI Galway").

The initial study will examine the ability of the NS cells to provide functional
improvements in models of spinal cord injury at REMEDI.

Spinal cord injury affects more than 25 million people worldwide, with 130,000
new cases reported each year. It represents a considerable social and economic
cost to both families and countries.

"It's a really exciting opportunity for us to test our NS cells in preclinical
models of spinal cord injury" said SCS's Chief Scientific Officer, Dr Tim
Allsopp. "We will examine how the cells remain viable, engraft and support
natural repair processes. We are really pleased to be collaborating with NUI
Galway's Regenerative Medicine Institute".

Stem Cell Sciences' NS cells are unique in that they can be grown in serum-free
and feeder-free cell culture conditions. Potentially, this makes them very
effective when used in a variety of cell-based therapeutics.

Professor Frank Barry, REMEDI's Scientific Director and a world-leading
scientist in stem cell therapy, said: "For REMEDI to be able to evaluate a 'best
in class' neural stem cell in conjunction with a world-leading company is a
great opportunity for us, and underscores the efforts we are making in Ireland
in finding novel therapeutic solutions for currently incurable conditions."

Initial study results are expected in the first quarter of 2007. If this study
proves successful, Stem Cell Sciences and REMEDI plan to expand the
collaboration with more extensive testing.

"It would be a great step forward if we demonstrate efficacy for our NS cells in
this model" said Dr Peter Mountford, Chief Executive Officer of SCS. "With our
capabilities in novel cell culture media development and stem cell uses in drug
discovery, our next step was always to move into pre-clinical trials of illness
and disease, using the NS cells."

Dr Daniel O'Mahony, Director of Technology Transfer at NUI Galway said, "We are
bringing together two technology leaders in their respective fields in the
development of new treatments for spinal cord injury. This collaboration between
REMEDI and SCS reinforces our commitment to industrial collaborations and to
progressing technologies from the laboratory to the market place."

                                    - Ends -

For further information, please contact:

Stem Cell Sciences plc                                             0131 662 9829
Hugh Ilyine, Chief Operating Officer
Sue Furber, Director of Finance & Company Secretary

Regenerative Medicine Institute (REMEDI)                       [phone]
Ita Murphy MSc, Communications and Outreach Manager

Weber Shandwick | Square Mile                                      020 7067 0700
James White

Notes to Editors
Stem Cell Sciences plc (SCS, AIM: STEM) is a global biotechnology company,
established in Melbourne, Australia in 1994, providing products in the
burgeoning stem cell research and drug discovery markets, in addition to the
targeted development of cell-based therapies for neurodegenerative disease and
injury.

The Company has established a leading intellectual property (IP) and technology
portfolio that enables the commercial application of stem cells in drug
discovery, providing the Company with early-stage revenue streams and technology
development for at scale cell production of SCS cell-based therapeutics.

SCS principal focus is in neurological disease. Revenues in the neurotech
market, including pharmaceuticals, devices and diagnostics, grew 10% in 2005 to
US$110 billion*.

SCS operates as a group of independent operations with laboratories in Scotland,
Japan and Australia, each of which is affiliated with an academic centre of
excellence. These include the Institute of Stem Cell Research (ISCR), Edinburgh,
UK, RIKEN Centre for Development Biology, Kobe, Japan and the Australian Stem
Cell Centre, Melbourne, Australia.

SCS has four business units focused on key sustainable business strategies.
SC Proven(R) provides cell culture media (liquid formulations) and reagents that
enable the growth and differentiation of stem cells. The first commercially
available product, a novel, serum free, stem cell growth medium, has been
exclusively licensed for manufacture and marketing to Chemicon, part of
Millipore Corporation.

SC Licensing licenses SCS proprietary technologies, such as Internal Ribosome
Entry Site (IRES) and Stem Cell Selection, for application in laboratory-based
research and discovery. SCS has licensed technology to major pharmaceutical and
biotechnology companies including Pfizer, Sanofi Aventis, GSK, Deltagen Inc and
Lexicon Genetics Inc.

SC Services provides specialised stem cell production for basic research and
drug discovery, including high-throughput applications.

SC Therapies' goal is to develop safe and effective cell-based therapies for
currently incurable diseases. SCS is conducting preclinical evaluations of its
neural stem cell lines in a number of therapeutic applications. The first
preclinical programme is being undertaken by SCS' Japanese affiliate, which
recently announced the exclusive licensing of human multi-potent adipose-derived
stem (hMADS) cells for therapeutic purposes. SCS KK will conduct preclinical
studies for the treatment of Duchenne Muscular Dystrophy in 2006.

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



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