In-license of technology

Stem Cell Sciences plc
19 June 2007

             Stem Cell Sciences in-licenses breakthrough discovery
                     for the production of human stem cellS
                         ("Stem Cell Sciences", "SCS")

19 June 2007

Stem Cell Sciences plc (SCS, AIM:STEM, ASX:STC), the global biotechnology
company focused on the commercialisation of stem cells and stem cell
technologies, is pleased to announce the exclusive in-licensing of a
breakthrough technology. This is expected to significantly accelerate the
application of human embryonic stem (ES) cells in both research and cell-based
therapies. This discovery overcomes the key challenge in the effective scale-up
of stem cell technologies - cell death. When separated from one another, during
transfer from one growth vessel to another in routine laboratory processes such
as scale-up and genetic modification, human ES cells commonly undergo cell
death. The use of a selective ROCK inhibitor to increase the robustness of the
cells will allow for the large-scale automated production that is needed for
industrial research and clinical application. SCS has secured exclusive rights
to the discovery in all global territories except Japan where the company holds
non-exclusive rights. Financial terms were not disclosed.

The discovery, made by Professor Yoshiki Sasai's team at The Institute of
Physical and Chemical Research of the RIKEN Centre for Developmental Biology
(Kobe, Japan), uses a class of compounds known as ROCK (Rho-associated kinase)
inhibitors to block the onset of stem cell death when the clusters of growing
cells are dissociated for transfer and scale-up. This discovery, published on
27th May in Volume 25 of the prestigious journal Nature Biotechnology* was
effective on all human ES cell lines tested. The discovery represents a world
first in terms of stem cell technology.

Dr Peter Mountford, Chief Executive Officer of SCS said: "We anticipate that
this discovery will have a very positive impact across the human ES cell field.
The RIKEN discovery will not only transform human ES cell production but will
also enhance our ability to engineer human ES cell lines needed by the
pharmaceutical industry for specific drug discovery assays. In commercial terms,
it will build revenues for SCS through new and improved human ES cell culture
media and cell-based drug discovery products, as well as further strengthening
our longer term position in cell based therapies."

David Dodd, Chairman of SCS said: "Our business is to provide products, tools
and services that advance the life-enhancing value capable of being achieved
from stem cell biology. It is our goal to continue to source leading edge
technologies to constantly improve and diversify the products that researchers
need to deliver maximum clinical benefit in the shortest possible time frames.
We're delighted to have concluded this agreement with the RIKEN Centre for
Developmental Biology and are now preparing for the rapid dissemination of this
valuable technology throughout the medical research community."

                                    - Ends -

For further information, please contact:

Stem Cell Sciences plc (United Kingdom)
Hugh Ilyine, Vice President and Chief Operating Officer         [phone]
Joe Mee, SC ProvenTM Business Unit Manager and Senior Scientist

Weber Shandwick Financial
Louise Robson or James White                                    [phone]

Stem Cell Sciences (Australia) pty ltd
Peter Mountford, President and CEO                               [phone]
Paul Bello, Scientific Program Manager

Talk Biotech
Fay Weston                                                       [phone]

Stem Cell Sciences llc (USA)
David Dodd, Chairman of SCS plc                                  [phone]
George Murphy, Vice President Business Development               [phone]

References:

* A ROCK inhibitor permits survival of dissociated human embryonic stem cells
Kiichi Watanabe, Morio Ueno, Daisuke Kamiya, Ayaka Nishiyama, Michiru Matsumura,
Takafumi Wataya, Jun B Takahashi, Satomi Nishikawa, Shin-ichi Nishikawa, Keiko
Muguruma, Yoshiki Sasai, Nature Biotechnology 25, 681 - 686 (2007), advance
online publication, DOI:10.1038/nbt1310

RIKEN Centre for Developmental Biology
http://www.cdb.riken.jp/en/index.html
http://www.cdb.riken.jp/en/04_news/articles/070528_rockhes.html

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), Kobe (Japan), 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
characterized 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



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