Re Agreement

Stem Cell Sciences plc
24 December 2007



Press Release

Stem Cell Sciences Enters into Diabetes R&D Agreement with Major Pharmaceutical
                                    Company
                         ("Stem Cell Sciences", "SCS")

24 December 2007

Cambridge, U.K. - Stem Cell Sciences plc (AIM: STEM, ASX: STC) the global
biotechnology company focused on the commercialization of stem cells and stem
cell technologies in research, today announced the signing of a contract
research agreement with a major biopharmaceutical company. Under the terms of
the agreement Stem Cell Sciences will validate its suite of cell processing
technologies for the scaled, automated production of human embryonic stem cells
(ES) and demonstrate the bulk production of cells relevant for diabetes research
at the Company's Cambridge based production facility. Financial terms were not
disclosed and the client company has requested anonymity.

In addition to providing contract production services, Stem Cell Sciences will
provide an option to an exclusive license for the use of its Rho kinase
inhibitor technology (ROCKi) in the field of human ES production of cells for
diabetes research.

"We are delighted that our advanced, automated stem cell production is being
validated by this deal. This agreement, which will focus on the proof of concept
for production of cells for research purposes, is further recognition of our
competence in the culture and manipulation of stem cells and we anticipate
exciting opportunities in the future to further demonstrate compliance of the
process for production of clinical grade cells," commented Dr. Alastair J.
Riddell, Chief Executive Officer, Stem Cell Sciences.

The program of work in the contract research agreement will utilise a number of
Stem Cell Sciences' own human ES lines derived with regulatory approval and
under license in their Melbourne based research facility at Monash University
campus. Dr. Paul Bello, Research Program manager, who leads the team
characterising the stem cell lines commented "The company has been working
productively to develop a number of commercial reagents and processes for the
improved isolation and growth of human ES cell lines and to close this agreement
with a major biopharmaceutical company represents a satisfactory validation of
our approach."


Stem Cell Sciences intends to seek similar agreements in the future with
biopharmaceutical companies as the field of stem cell-based therapeutics expands
to include treatment for many degenerative diseases and for which a clean, safe,
scalable production platform of cells will be a necessity.

                                     -Ends-
                                  -

For further information, please contact:

Stem Cell Sciences plc (United Kingdom)                     [phone]
Dr. Alastair Riddell, CEO
Halsin Partners                                             [phone]
Mike Sinclair
Stem Cell Sciences (Australia) pty ltd                      [phone]
Dr. Paul Bello, Research Program Manager
Talk Biotech                                                [phone]
Fay Weston
Stem Cell Sciences llc (USA)                                [phone]
George Murphy, Vice President Business Development


Notes to Editors

ABOUT STEM CELL SCIENCES:

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
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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