NeoStem Announces Milestone Patent Filing Establishing Model for Next Generation Bio-Medical Infrastructure Aug 17 2007

Company's Proprietary Capabilities Can Deliver Designer Stem Cell Biotherapies to Patients in Forecasted Multibillion Dollar Healthcare Sector

NEW YORK--(August 17, 2007)--NeoStem, Inc. (AMEX:NBS - News), the first company to specialize in the collection, processing and storage of stem cells from healthy adults for personal use in times of critical medical need, announced today that it has filed a far-reaching patent application that initiates the process of safeguarding the Company's proprietary procedures for collecting, storing and developing potential biotherapies from adult stem cells derived from a patient's own body. The application encompasses several groundbreaking concepts that include next generation biomedical services such as bio-insurance and the formulation of designer stem cell-related therapies for healthy individuals interested in mitigating potential health conditions in the future.

NeoStem's proprietary technology positions the company at the forefront of a bold new shift in the medical industry where the patient's own body would provide the materials, such as adult stem cells, necessary to formulate therapies that have, until recently, been provided by pharmaceutical companies in the form of synthetic, chemically engineered drugs.

"We believe NeoStem is positioned to take a leadership role in the emerging stem cell therapeutic market by fractionating the cells for the treatment of different diseases in what many medical doctors and scientists believe to be the next great revolution in medicine," said Robin Smith, M.D., Chairman and Chief Executive Officer of NeoStem. "We believe we are at the threshold of stem cells being a mainstream therapeutic that will dramatically change how medicine is practiced in the future. NeoStem is firmly committed to protect and continue to build a robust portfolio of pending patents as a means to securing long-term value for our shareholders."

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

"It is important for investors to understand that we believe that our proprietary technology positions us above and beyond the processes currently being employed by cord blood banks, which simply inject the entire spectrum of stem cells without regard to the specific disease target," said Denis Rodgerson, Ph.D., Director of Stem Cell Science of NeoStem. "We believe that the NeoStem service offering will prove to be heads and shoulders above any other stem cell services company."

The NeoStem process begins when a physician or health industry professional identifies a individual who could benefit from having their stem cells collected and banked. Candidates for bio-insurance include a broad range of adults, including health conscious individuals, someone with genetic risk factors, or patients in early-disease states. Once the physician has extracted the patient's stem cells from peripheral blood (through a non-invasive, easy-to-administer process) the stem cells are sent to a NeoStem facility to be cryopreserved, stored and characterized. If the need arises in the future, NeoStem clients may benefit from prompt access to therapeutically useful, genetically matched adult stem cells. NeoStem generates revenues from every stage of that process.