NeoStem Announces Agreement with ProHEALTH to Open Adult Stem Cell Collection Center in the New York Metropolitan Area Oct 17 2007

The Company Extends its Physician Network to the Northeast by Aligning with One of the Region’s Largest and Most Prominent Multi-Specialty Practices

NEW YORK--(October 17, 2007)--NeoStem, Inc. (AMEX:NBS - News), a leading-edge healthcare services company capitalizing on breakthroughs in the burgeoning field of adult stem cell therapeutics, has announced the signing of an agreement with ProHEALTH Care Associates to open an adult stem cell collection center.  ProHEALTH, one of the largest and most prominent multi specialty practices in the New York metropolitan area, has over 100 providers in its network and provides care for over 250,000 patients in one of the most populous and affluent markets in the nation.  Located in Nassau County on Long Island and within miles of New York City, ProHEALTH has gained particular renown by becoming the official medical provider of major regional sports franchises and events including, the NY JETS, the NY Islanders, and the US Open Tennis Championships.

ProHEALTH will begin its collection operations upon the receipt of licensure by the New York State Department of Health.  As it builds its client base, ProHEALTH intends to establish the first single purpose facility dedicated specifically to providing adult stem cell collection services, as well as supporting any future stem cell related offerings developed, acquired or licensed by NeoStem.

Robin Smith, MD, MBA, the Chairman and CEO of NeoStem stated: “Our agreement with ProHEALTH is one of NeoStem’s most significant milestones to-date.  Our relationship marks the beginning of what we envision becoming one of the most profitable regions served by our company.   Our affiliation with ProHEALTH, such a large and renowned multi-specialty practice, helps validate the goal of our business model.  We intend to work towards collaborations with institutions of ProHEALTH’s size and/or renown in other major metropolitan regions throughout the country, to further accelerate our growth and momentum.”

Dr. David Cooper, Chief Executive Officer of ProHEALTH said, “Since inception, ProHEALTH has been determined to stay on the leading edge of medical developments. NeoStem’s advanced systems for collecting and storing autologous adult stem cells will give patients in the community the ability to take advantage of stem cell therapies offered today, as well as the therapies under development.”

Dr Smith added, “We are also delighted that NeoStem’s agreement with ProHEALTH comes on the heels of the collaboration we announced just last week with the New England Cryogenic Center, one of the largest and best run stem cell storage facilities of its kind.  We have now planted firm roots in the Northeast and hope that all of NeoStem’s stakeholders, especially those in need of autologous stem cell therapy, benefit from our efforts.”