Strategic Reorganisation

Stem Cell Sciences plc
15 February 2008



Press Release

             Stem Cell Sciences Implements Strategic Reorganisation
                             ("SCS", "The Company")

15th February 2008

Stem Cell Sciences plc (AIM:STEM, ASX:STC) today announced the implementation of
a comprehensive restructuring programme, designed to improve financial,
operational and growth performance, as well as provide a greater focus on its
commercialisation efforts in the application of stem cell technologies. These
initiatives are the result of a strategic review that the Board, in conjunction
with the new CEO Dr Alastair Riddell, commenced in 2007.

Highlights:
• Driving revenue growth by accelerating commercialisation activities
  and leveraging the company's intellectual property position
• Consolidating commercial operations and all senior management into
  existing and expanded facilities in Cambridge, UK
• Closing of facilities in Edinburgh, UK
• Streamlining of operations in Melbourne, Australia to become a
  centre for research excellence

Driving Revenue Growth
With historical leadership in stem cell technology, SCS is in a prime position
to take advantage of the growing need by the pharmaceutical industry for an
automated, scalable supply of high quality cell lines for drug research. SCS
intends to increase its business development efforts in this potentially
lucrative market opportunity. In addition, SCS will initiate a programme to
realise full commercial value of its existing intellectual property portfolio
through the signing of a series of non-exclusive licenses.

Streamlining of Operations
SCS is in the process of moving into expanded laboratory and administration
facilities on the Babraham Research Campus in Cambridge, UK, immediately
adjacent to their existing facility. These new premises will become the
operational headquarters from March 1st, housing all administrative and
operational functions as well as all senior management, including Dr Alastair
Riddell, the company's recently appointed CEO. The Cambridge site is already
home to SCS' pharmaceutical services division, which the company believes will
be a key driver of future growth for the company.

The Company will close its Edinburgh, UK, operations due to take place by the
end of April 2008. All employees have been offered positions in Cambridge but it
is expected that some will opt not to move and these will be made redundant.

The facility in Melbourne, Australia, will now fully concentrate on advancing
pioneering stem cell research, such as the advances being made with rat
embryonic stem (ES) cells.


Managerial Changes
As part of the restructuring, several members of the management team have
decided not to relocate with the company. These include Executive Directors Dr
Peter Mountford, Chief Technology Officer (Australia) and Hugh Ilyine, Vice
President and Chief Operations Officer (Edinburgh). Dr Mountford will remain
with the Company as a Non-Executive Director and consultant specifically to
evaluate new strategic growth opportunities.

In addition, the Finance Director and Company Secretary, Sue Furber, has elected
not to relocate. She will be replaced by Mr Giorgio Reggiani, who will act as
interim Finance Director and Company Secretary. Mr Reggiani is a Chartered
Management Accountant with extensive senior financial managerial experience. He
currently also serves as Finance Director at Sareum Holdings plc.

"This restructuring will provide the basis of a new, more
commercially-orientated Stem Cell Sciences. We believe we have the people, the
products and technological understanding to play a key role in the growing stem
cell research market. These changes provide increased operational efficiency and
place us in a better position to deliver shareholder value," commented Dr.
Alastair Riddell, Chief Executive Officer of SCS.

                                    - Ends -

For further information, please contact:

Stem Cell Sciences plc
Alastair Riddell, CEO
01223 499160

Halsin Partners
Michael Sinclair, Director
020 7084 5955

Talk Biotech (Australia)
Fay Weston
[phone]

Notes to Editors
Stem Cell Sciences plc (SCS, AIM:STEM, ASX:STC) is a leading provider of cells
and cell culture media to the burgeoning stem cell research market. The
successful application of stem cells in both research and clinical applications
is reliant on the reproducible supply of pure, fully characterised stem cells
and stem cell-derived specialised cells such as nerves and muscle. By providing
these products, to the life sciences industry and academia for use in basic
research and drug discovery, Stem Cell Sciences has multiple potential revenue
streams.

Stem Cell Sciences has multiple industry collaborations, including Millipore
Corporation for the marketing and distribution of HEScGROTM, its serum free
media for the growth of human embryonic stem cells and Merck & Co for the use of
mouse neural stem cell technology for research applications. It recently
announced deals with a major pharmaceutical company in the field of diabetes
research and with the Myelin Repair Foundation in the USA in neurological
research.

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.

For further information on the company please visit: www.stemcellsciences.com.



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