License Agreement

Stem Cell Sciences plc
25 October 2006



Embargoed until 12.00 GMT                                        25 October 2006

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

                     Stem Cell Sciences Announce Agreement
                   to Provide Human Embryonic Stem Cell Media

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 it has signed an
exclusive license agreement with Millipore Corporation to develop and market
SCS' serum free media for the growth of human embryonic stem cells (hESCs). The
defined media will be the first product available in the industry that offers
improved methods for growing hESCs without the need for animal serum.

By eliminating the need for serum, researchers can generate improved
experimental results by avoiding interference from animal products in the media,
which will improve the ease of use and reliability in growing hESC's. The lack
of animal-free, defined media for growing hESCs has been an important technical
hurdle in enabling researchers to advance their understanding of the therapeutic
value of stem cells.

SCS Vice President and Chief Operating Officer, Hugh Ilyine said: "As
researchers investigate using stem cells to create cures for new diseases, the
use of hESCs are critical. By providing serum-free media to grow hESC's,
scientists can be confident that the effects they are studying in the laboratory
are from the cell itself and not from animal products in the media. The
expansion of our agreement with Millipore will allow researchers to now benefit
from products offering superior performance in both mouse and human stem cell
research."

Under the terms of the agreement, Millipore will manufacture, market and sell
the new media under the brand name HEScGRO Embryonic Stem Cell Medium. SCS will
receive royalties from all future sales of HEScGRO Embryonic Stem Cell Medium.
The agreement builds on the successful collaboration between Millipore and SCS
formed in 2005 to commercialize media for the growth of mouse embryonic cells.
Millipore's ESGRO Complete(TM)is the leading product used by researchers today
for mouse stem cell experimentation.

"Millipore is committed to being the most innovative supplier of products to the
stem cell research market," said Dominique Baly, President of Millipore's
Bioscience Division. "Our agreement with SCS reflects the significant
investments we are making to serve the needs of researchers exploring the
therapeutic value of stem cells. We chose SCS because their media worked
extremely well in growing hESCs in a variety of different stem cell lines and
conditions and they had the most advanced development of serum-free media."

Millipore expects to have HEScGRO Embryonic Stem Cell Medium available for
commercial distribution before the end of the year.  HEScGRO has been shown to
be effective at growing many different human embryonic stem cell lines,
including lines that have been approved by the U.S. government for use in
federally sponsored research, as well as the "MEL" hES cell lines derived by
Stem Cell Sciences in Australia and distributed by Millipore.  Millipore offers
a broad range of products and reagents for stem cell research through its
Chemicon product line, which is part of the company's Research Reagents Business
Unit.

Millipore Research Reagents Business Unit creates innovative and high quality
biological reagents for life science researchers to conduct their experiments
consistently. These biological reagents include antibodies, dyes and biochemical
reagents that are used to identify and measure cellular interactions, cell
signaling and other cellular functions.

                                    - 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

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

Millipore (NYSE: MIL) is a leading provider of products and services that
improve productivity in biopharmaceutical manufacturing and in clinical,
analytical and research laboratories. The Company is organized in two operating
divisions. Its Bioprocess Division helps to enable pharmaceutical and
biotechnology companies to optimize their manufacturing productivity, ensure the
quality of drugs, and scale up the production of difficult-to-manufacture
biologics. Its Bioscience division helps to optimize laboratory productivity and
workflows by providing reagents, kits and other enabling technologies and
products for life science research and development. Millipore has a deep
understanding of its customers' research and manufacturing process needs, and
offers reliable and innovative tools, technologies and services. The Company is
part of the S&P 500 Index and employs approximately 5,800 employees worldwide.
For additional information on Millipore Corporation, please visit its website
at: www.millipore.com.


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