NeoStem Announces Beverly Hills Environs as the First Area to Be Opened Pursuant to Its Recently Announced Multi-Territory Agreement with Stem Collect LLC Oct 24 2007

NEW YORK--(October 24, 2007)--NeoStem, Inc. (AMEX:NBS), a leading-edge healthcare services company seeking to capitalize on existing treatments and future breakthroughs in the burgeoning field of adult stem cell therapeutics, today announced the signing of an agreement with Stem Collect LLC, to open a Beverly Hills location, pursuant to a multi-territory development agreement between the parties. Stem Collect’s Chairman is James R. Doty, MD, the former CEO of Accuray, (NASDAQ:ARAY - News).

NeoStem is particularly enthusiastic about opening a center in the Beverly Hills area because of its population focused on health, fitness and longevity. Finalization of the site is underway and will be opened upon build-out and satisfaction of licensing requirements.

As announced this past Monday, Stem Collect is entitled to begin opening NeoStem-affiliated adult stem cell centers in five locations in California and to open the first in the Denver marketplace upon the signing of collection center agreements designating the specified territory.

Robin Smith, M.D., Chairman and Chief Executive Officer of NeoStem stated: “We are working to bring our adult stem cell collection, processing and storage services to our nation’s population through a number of highly promising avenues. Just last week, we announced a collaboration with ProHEALTH, a large and renowned multi-specialty group that provides us with a strong entrée into the Northeast. Our affiliation with Stem Collect, a venture chaired by a highly esteemed medical professional and successful businessman, has now allowed us to expand into another large and potentially profitable region - California. The Stem Collect agreement is based on a model we believe could provide a highly valuable means of entering new markets and expanding existing ones without NeoStem assuming significant additional capital obligations.”

This model, is one where a highly qualified management team with funding access, commits its own capital to open NeoStem-affiliated collection centers for an agreed upon region of market exclusivity. In order to maintain such exclusivity, NeoStem requires the collection center to generate a minimum number of adult stem cell collections, which management believes would generate revenue to provide its shareholders an appropriate return.

Dr. Smith added: “We take great pride that Dr. Doty, who has been so successful in his prior medical endeavors, is taking a keen interest in participating in NeoStem’s upside and the promise stem cell storage and therapy should offer our aging population. His acumen is well demonstrated by his decision to choose the Beverly Hills area as his first California location, as it represents what we believe to be one of the most promising regions in the State.”