New license - hMADS

Stem Cell Sciences plc
25 July 2006



25.7.06                                                        Immediate release

                      (Stem Cell Sciences plc. AIM: STEM)

              New Human Stem Cells Set to Speed Up Drug Discovery


Stem Cell Sciences (SCS, AIM: STEM) today announced the in-licencing of a novel
human stem cell, called the human multi-potent adipocyte-derived stem (hMADS)
cell. Discovered in fat tissue and easily grown, hMADS show great promise as
biologically relevant cells to improve drug discovery.

In the joint laboratory between the University of Nice Sophia Antipolis and the
Centre National de la recherche scientifique (CNRS), Drs Ailhaud and Dani have
shown the cells are capable of producing fat and bone at very high efficiency,
and will be suited for drug discovery in such areas as obesity and osteoporosis.
SCS holds world-wide exclusive rights to commercialise these cells for drug
discovery in the field of obesity and an exclusive option in the field of
osteoporosis.

SCS plans to quickly expand its range of cell types for discovery, lead
optimisation and high content drug screens. The new licence will enable SCS to
position itself as the leading supplier of stem cell derived cell types for drug
discovery, a rapidly developing market. The market expansion dovetails neatly
with the company's expansion into automated stem cell production, and launching
of a range of specialised stem cell culture media.

Dr Peter Mountford, CEO of SCS, said: "We have been delighted with the way these
cells have performed and expect their addition to our cell-based screening
platform will substantially expand the range of discovery assays that we can
offer to pharmaceutical industry partners."

The new licence comes hard on the heals of an earlier licence granted to Stem
Cell Sciences KK, SCS' Japanese affiliate, to use hMADS cells for therapeutic
uses, with the first target disease identified - Duchenne's Muscular Dystrophy.
Both companies intend to collaborate with the University of Nice/CNRS in
sponsored research efforts to accelerate further development of these remarkable
cells.

                                    - Ends -

For further information, please contact:

Stem Cell Sciences plc
Peter Mountford, Chief Executive Officer & President               0131 662 9829

Weber Shandwick Square Mile                                        020 7067 0700
James Chandler/James White

Notes to Editors

Stem Cell Sciences plc (SCS, AIM: STEM) is a global biotechnology company
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(TM)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, a division of
Serologicals Inc.

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 Duchene's Muscular Dystrophy in 2006.



*Neurotech Insights, Volume 2/3 April 30th 2006.



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