Fundraising

ReNeuron Group plc
06 February 2007

                  ReNeuron announces £5.5 million fundraising

Guildford, UK, 6 February 2007: ReNeuron Group plc today announces that it
proposes to place 18,333,333 new ordinary shares of 1p each credited as fully
paid at a price of 30p per share, to raise £5.5 million before expenses. Collins
Stewart Europe Limited acted as nominated adviser and broker to the Company in
connection with the placing.

The Directors intend that the proceeds of the placing be used to provide funding
to enable ReNeuron to progress its ReN001 stem cell therapy for stroke into the
clinic as well as accelerating the development of the Company's other
therapeutic programmes.

Michael Hunt, Chief Executive Officer of ReNeuron, said:

'We are delighted to have raised the funds necessary to drive our transition to
a clinical stage stem cell development company.  The fundraising provides the
Company with a strong financial base which we intend to convert into solid
clinical achievement in stroke and accelerated development of a highly promising
pipeline of stem cell therapies addressing other significant areas of unmet
medical need.'

In conjunction with the placing the Company also proposes to issue 771,368 new
ordinary shares to StemCells, Inc. (SCI) fully paid up as to nominal value
pursuant to the term of the subscription and share exchange agreement between,
inter alia, the Company and SCI dated 5 July 2005 (as amended).  A total of
19,104,701 new ordinary shares are therefore expected to be issued pursuant to
the placing and the SCI issue, with the shares being admitted to trading on AIM
on 12 February 2007. Such new ordinary shares will rank in full for all
dividends and otherwise pari passu with all existing ordinary shares.

In addition, in connection with the placing the Company proposes to issue
688,145 warrants to subscribe new ordinary shares to Collins Stewart. The
warrants have a three year exercise period and are exercisable at a price of 30p
per ordinary share.

Enquiries:

ReNeuron
Michael Hunt, CEO                                    Tel: [phone]

Financial Dynamics
David Yates / Nicola Daley                            Tel: [phone]


Notes to Editors

ReNeuron is a leading, UK-based adult stem cell therapy business.  It is
applying its novel stem cell platform technologies in the development of
ground-breaking stem cell therapies to serve significant and unmet or poorly-met
clinical needs.

ReNeuron has used its c-mycER(TAM) technology to generate genetically stable
neural stem cell lines.  This technology platform has multi-national patent
protection and is fully regulated by means of a chemically-induced safety
switch.  Cell growth can therefore be completely arrested prior to in vivo
implantation.

ReNeuron has filed for approval to commence initial clinical studies in the US
with its lead ReN001 stem cell therapy for chronic stroke disability.  This
represents the world's first such filing concerning a neural stem cell treatment
for a major neurological disorder.  ReNeuron has also generated pre-clinical
efficacy data with its ReN005 stem cell therapy for Huntington's disease, a
genetic and fatal neurodegenerative disorder that affects around 1 in 10,000
people.  This programme is in pre-clinical development.  In addition to its
stroke and Huntington's disease programmes, ReNeuron is developing stem cell
therapies for Parkinson's disease, Type 1 diabetes and diseases of the retina.

ReNeuron has also leveraged its stem cell technologies into non-therapeutic
areas - its ReNcell(TM) range of cell lines for use in research and in drug
discovery applications in the pharmaceutical industry.  ReNeuron's ReNcell(TM) 
CX and ReNcell(TM) VM neural cell lines are marketed worldwide under license by
Millipore Corporation.

ReNeuron's shares are traded on the London AIM market under the symbol RENE.L.

Further information on ReNeuron and its products can be found at
www.reneuron.com.

Data sources: UK Stroke Association; American Stroke Association.

This announcement contains forward-looking statements with respect to the
financial condition, results of operations and business achievements/performance
of ReNeuron and certain of the plans and objectives of management of ReNeuron
with respect thereto. These statements may generally, but not always, be
identified by the use of words such as 'should', 'expects', 'estimates',
'believes' or similar expressions. This announcement also contains
forward-looking statements attributed to certain third parties relating to their
estimates regarding the growth of markets and demand for products. By their
nature, forward-looking statements involve risk and uncertainty because they
reflect ReNeuron's current expectations and assumptions as to future events and
circumstances that may not prove accurate.  A number of factors could cause
ReNeuron's actual financial condition, results of operations and business
achievements/performance to differ materially from the estimates made or implied
in such forward-looking statements and, accordingly, reliance should not be
placed on such statements.

The terms 'ReNeuron', 'the Company' or 'the Group' used in this statement refer
to ReNeuron Group plc and/or its subsidiary undertakings, depending on the
context.


                      This information is provided by RNS
            The company news service from the London Stock Exchange