Technology Transfer Agreement

Stem Cell Sciences plc
31 January 2006


For Immediate Release






   STEM CELL SCIENCES AND THE UNIVERSITY OF EDINBURGH ANNOUNCE NEW TECHNOLOGY
                               TRANSFER AGREEMENT

Edinburgh, U.K., and Melbourne, Australia, 31 January, 2006 - Stem Cell Sciences
plc (AIM: STEM, SCS), a global stem cell company focused on delivering clinical
benefit through the application of stem cell technologies, today announces a
technology transfer agreement with the University of Edinburgh, which provides
the basis for continued formal collaboration in the area of stem cell research.

SCS has collaborated with the University of Edinburgh since 1994 and this new
agreement supercedes the original arrangement. All previous patent licenses
issued to SCS under the older agreement will remain with SCS. The terms of the
new agreement provide a solid basis for future collaborations between the
parties.

SCS is continuing its partnership with the University of Edinburgh's Institute
of Stem Cell Research (ISCR) due to its status as a world-leading centre for
multidisciplinary research in mammalian stem cell biology and its leading role
in the emergence and development of the field. The ISCR's mission is to acquire
the basic knowledge and understanding of stem cells required for the development
of regenerative therapies to treat human disease and injury. Among its many
pioneering advances is the understanding of how to control self-renewal and
differentiation of stem cells with a view to specific cell types being used in
transplantation and tissue repair. In August 2005 SCS and Edinburgh University
announced the granting of an exclusive license that has enabled SCS to derive
and grow neural stem cells for drug discovery and development in neurological
diseases such as Parkinsons Disease and Epilepsy.

Peter Mountford, Chief Executive Officer of SCS commented, "We are pleased to
have reached a new, mutually beneficial agreement that will help to accelerate
the commercialisation of stem cell technologies. We look forward to a continued
working relationship and the announcement of new commercialisation
opportunities."

Professor Grahame Bulfield, Head of the College of Science and Engineering at
the University of Edinburgh, said, "The University of Edinburgh has for the last
decade been a world leader in stem cell research and has established a good
working relationship with SCS. We are pleased to sign this new agreement which
will foster stem cell research and its exploitation to the advantage of both the
University and SCS."

                                    - Ends -

Notes to Editors:

Stem Cell Sciences plc

(SCS, AIM: STEM) is a global biotechnology company established in Melbourne in
1994 to undertake research on embryonic stem cells technologies in order to
provide early patient benefit. SCS has integrated R&D operations in Australia,
Japan and UK, each of which is affiliated with an academic centre of excellence.
All of the subsidiaries focus and lead in specific aspects of stem cell biology.
The company's business model combines near-term revenue-generation, through the
application of stem cells in drug discovery, with the long-term development of a
pipeline of cell-based therapies. Stem Cell Sciences listed on the London AIM
exchange in July 2005.

Contact:

Hugh Ilyine, Vice President and COO
Phone: [phone]
E-mail: [e-mail]

Weber Shandwick / Square Mile
Yvonne Alexander
Phone: [phone]
Email: [e-mail]



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