Two State Licenses Allow Stem Cell Collections to Immediately Begin from NeoStem Clients In New York for Storage in California Facility Apr 26 2007

NEW YORK—NeoStem, Inc. – April 26, 2007- (OTCBB:NEOI), the first company to specialize in the collection, processing and storage of stem cells from healthy adult donors for personal use in times of critical medical need, has announced that the New York State Department of Health has issued two provisional licenses to allow the Company to begin commercializing its next generation stem cell collection services in New York.

The first license approves NeoStem’s California facility to store stem cells collected from the peripheral blood of clients in the State of New York as specified in the license. Specifically, it allows for comprehensive tissue procurement services, permitting tissue collection, processing and storage at the California facility of hematopoietic progenitor cells.

The second license approves limited tissue procurement services, permitting solicitation relating to the collection of hematopoeitic progenitor cells from the peripheral blood of autologous donors at NeoStem’s New York City location.

NeoStem will begin adult stem cell collections through its relationship with a New York approved stem cell collection service provider and will seek to continue to add to its network of collection providers and hospitals.

“We are very excited to have been able to receive authorization to begin operations in New York and offer our next generation services to the millions of citizens of the State,” said Dr. Robin Smith, Chief Executive Officer of NeoStem. “We believe that these licenses are a further validation of our proprietary process and of our business model.”

NeoStem is developing a nationwide network of adult stem cell collection centers, enabling people to donate and store their own stem cells for personal use years or decades later—providing an accessible supply of healthy, genetically matched stem cells for potential therapeutic use.

NeoStem's first-to-market competitive advantage positions the Company to capitalize on the hundreds of stem cell-based therapy research programs and clinical trials currently underway. The Company believes these programs will result in stem cell-based therapies becoming available, and that NeoStem clients could be among the first to benefit from the life saving progress that has already been made for such debilitating conditions as cancer, heart disease, diabetes, multiple sclerosis, lupus, and many others.