Data to be Released at AACR

EpiStem Holdings plc
07 April 2008



Press Release

Embargoed for release at 07.00 April 7, 2008



        EPISTEM TO ANNOUNCE DATA ON ITS STEM CELL CANCER ASSAYS AT AACR

Epistem plc (LSE: EHP), the UK epithelial stem cell company, announced today
that data on its cancer stem cell assays will be presented at the international
meeting of the American Association for Cancer Research (AACR) at the San Diego
Convention Centre, California, USA from 13th to 16th April 2008.

It has been suggested that tumours are derived from a small subpopulation of 
'cancer stem cells'.  If these stem cells are not affected by a cancer therapy
the treatment is only likely to be palliative and the tumour will re-grow.
Epistem are currently developing and validating cancer stem cell assays to test
the effect of novel cancer agents on this cell type to help identify more
effective treatments.

The poster presentation will demonstrate that a key regulator of epithelial stem
cells, discovered by Epistem's Novel Therapies Division, inhibits the growth of
cancer stem cells. Epistem have assayed the protein in an in vitro cancer stem
cell assay and have shown it to reduce the formation of breast cancer spheres
(mammospheres) four-fold.  Epistem's Contract Research Division also provides
the cancer stem cell assay on a contract basis for other pharmaceutical and
biotechnology companies.

An abstract can be viewed on the AACR website at www.aacr.org or under 'latest
news' on the Epistem website at www.epistem.co.uk


For further information, please contact:


Matthew Walls                                               [phone]
Chief Executive Officer                                     [phone]
Epistem Plc.


Mike Wort / Anna Dunphy                                     [phone]
Financial PR/IR
De Facto Communications




Notes to Editors:

About Epistem

Epistem is a biotechnology company commercialising its expertise in epithelial
stem cells in the areas of oncology, gastrointestinal diseases and
dermatological applications. Epistem develops innovative therapeutics and
biomarkers and provides contract research services to drug development
companies. The Group's expertise is focused on the regulation of adult stem
cells located in epithelial tissue, which includes the gastrointestinal tract,
skin, hair follicles, breast and prostate. Epistem does not conduct research in
the areas of embryonic stem cells or stem cell transplantation.

Epistem operates three distinct business divisions, Contract Research Services,
Novel Therapies and Biomarkers.


Contract Research Services

Contract Research Services provides specialised preclinical efficacy testing
primarily for drug development companies on a 'fee for service' basis. This
division on a standalone basis is cash generative and profitable with a
seven-year track record of providing testing services to over 80 international
company clients primarily in Europe and the United States.


Novel Therapies

Novel Therapies is focused on developing its own innovative therapeutics.
Through its discovery platform, Novel Therapies has identified 250 potential
drug candidates, of which a subset are undergoing further evaluation and
characterisation as stem cell regulators for the Group's emerging drug
development pipeline.


Biomarkers

The emerging biomarker technology leverages the Company's knowledge of the
behaviour of epithelial stem cells and drug-induced gene expression change to
measure drug effects during treatment.  Changes in gene expression can be
detected within hours and at low levels of chemotherapy or radiation. The highly
sensitive Biomarker technology is based on using mRNA extracted from the bulb of
cells at the base of a single hair follicle as a minimally invasive process to
measure gene expression changes in epithelial tissue.


Combined Business Model

Epistem is exploiting its combined business model to advance its own therapeutic
candidates to late preclinical stage development. The business model integrates
the discovery efforts of Novel Therapies with the efficacy testing assays of its
Contract Research Services Division, to identify and characterise new drug
candidates. Revenues generated by Contract Research Services and Biomarkers will
assist in offsetting Novel Therapies' investment requirements for the discovery
and development of its lead therapeutics. The Directors believe that licensing
partnerships will be forthcoming across the therapeutics, biomarkers and
discovery platform in 2008.



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