BrainStorm Cell Therapeutics Announces Adult Stem Cell Breakthrough for Neurodegenerative Diseases; Differentiation into GDNF-Producing Astrocytes.

NEW YORK & TEL AVIV, Israel -- BrainStorm Cell Therapeutics (OTCBB:BCLI), today announced a breakthrough in the development of adult stem cell therapeutics for neurodegenerative diseases. The company's scientific collaborators at Tel Aviv University, have successfully used adult stem cells to produce glial derived neurotrophic factor (GDNF). GDNF producing cells hold great promise for treatment of Parkinson's and other neurodegenerative diseases.

In the current study, the research team at Tel Aviv University used proprietary technology, to differentiate human bone-marrow-derived mesenchymal-stem cells into neural supporting cells that produce GDNF. Worldwide rights to these research results are exclusively licensed to BrainStorm.

GDNF has been shown to protect dopaminergic brain cells, neurons that produce dopamine that becomes depleted in Parkinson's patients. GDNF has also been shown to have a beneficial role in protecting neurons in animal models of Amyotrophic Lateral Sclerosis (ALS) and Spinal Cord Injury (SCI).

Most of the current treatment of neurodegenerative diseases provide limited benefit to patients. Drugs for Parkinson's disease, which focus on dopamine supplementation, often cause prohibitive side effects. To overcome these problems, researchers around the world are intensively exploring novel cell- and gene-based therapies for replacement and augmentation of the lost neurons. Prominent among these novel therapies are attempts to deliver GDNF to the site of neuronal regeneration.

In the current BrainStorm-sponsored study at Tel Aviv University, biochemical and immunological methodology showed that human bone marrow mesenchymal stem cells may be uniquely differentiated into cells that resemble astrocytes, express astrocytic markers and produce significant levels of GDNF.

The same scientific team at Tel Aviv University, led by Professor Eldad Melamed and Dr. Daniel Offen, have previously developed patent-pending technology to differentiate human bone marrow into dopamine producing neuron-like cells, which showed functional benefit in animal models of Parkinson's disease. This technology is also exclusively licensed to BrainStorm.

"Neurologists have long thought that GDNF can be used to preserve and maintain the integrity of dopaminergic neurons in Parkinson's disease. However, delivery to the appropriate location is a major challenge. Direct delivery of the protein has failed and there are current ongoing attempts at gene therapy. We believe that our approach, based on neural transplantation of stem cell derived GDNF producing cells, without any genetic manipulation, is preferable," said Prof. Eldad Melamed, Chairman of the Scientific Advisory Board.

In addition, "The use of a patient's own bone marrow stem cells to generate neural cells for replacement and support of a patient's damaged dopaminergic cells is a strategy that will avoid problems of immunological rejection," said Dr. Daniel Offen, Chief Scientist.

"This is a remarkable achievement which combined with our previous success in producing dopaminergic cells, gives us a two-pronged, synergistic approach to develop long term alternatives for the treatment of Parkinson's disease and other debilitating disorders, such as ALS or SPI," said Yaffa Beck, President and CEO. " We look forward to demonstrating benefit of the GDNF producing cells in animal models and are intent on developing both our dopaminergic and GDNF differentiation processes to the clinic," she added.

About BrainStorm Cell Therapeutics Inc.

BrainStorm Cell Therapeutics Inc. is an emerging company developing neural-like stem cell therapeutic products, NurOwn(TM), based on autologous bone marrow derived stromal cells, for treatment of neurodegenerative diseases. NurOwn(TM) patent pending technology is based on discoveries made by the team of prominent neurologist, Prof. Eldad Melamed, Head of Neurology at Rabin Medical Center, and expert cell biologist Dr. Daniel Offen, at the Felsenstein Medical Research Center of Tel-Aviv University, enabling the differentiation of bone marrow derived stem cells into functional neurons, as demonstrated in animal models. The company holds rights to develop and commercialize the technology through an exclusive, worldwide licensing agreement with Ramot at Tel Aviv University Ltd., the technology transfer company of Tel Aviv University. The company's initial focus is on developing treatments for Parkinson's Disease.

About Stem Cell Therapy 

Stem cells are non-specialized cells with a remarkable potential for both self-renewal and differentiation into cell types with a specialized function, such as muscle, blood or brain cells. Stem cells may be sourced from fetal or embryonic tissue or from adult tissue reservoirs such as bone marrow. Use of embryonic stem cells, has become the center of significant ethical and moral debate. In contrast, use of adult stem cells does not face the same moral or legal controversy. Stem cell therapy aims to "cure" disease by replacing the 'diseased' cells with 'healthy' cells derived from stem cells. This approach has the potential to revolutionize medicine and, if successful, the implied commercial opportunities are great. Currently, both embryonic stem cells (ESC) and adult stem cells (ASC) are being explored as the potential basis for multiple cell therapy products.

About Parkinson's Disease

Parkinson's Disease (PD), which was first described by James Parkinson in 1817 as "the shaking palsy", is a chronic, progressive neurodegenerative disorder, affecting the brain cells responsible for production of dopamine. The symptoms include tremors, rigidity, slowness of movement and impaired balance. Over four million people in the developed world, including as many as 1.5 million Americans, mainly over the age of 65, are diagnosed with PD. That figure is predicted to rise by 10% by 2010. Pharmaceutical treatments of PD with an estimated combined annual market value of $4 billion, are insufficient to meet patient needs. The search for more effective treatments continues.

Safe Harbor Statement

Statements in this announcement other than historical data and information constitute "forward-looking statements" and involve risks and uncertainties that could cause BrainStorm Cell Therapeutics Inc. actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, risks associated with BrainStorm Cell Therapeutics Inc. limited operating history, history of losses and expectation to incur losses for the foreseeable future; need to raise additional capital to execute on its business plan; dependence on its license to Ramot's technology and ability to meet its funding and payment obligations included in such license agreement; ability, together with its licensor, to adequately protect the NurOwn(TM) technology; dependence on key executives who have recently joined the company and on its scientific consultants; ability to identify, negotiate and successfully implement strategic partnering relationships; ability to complete clinical trials successfully and to obtain required regulatory approvals; competition with companies, some of which have greater resources and experience in developing and obtaining regulatory approval for treatments in BrainStorm Cell Therapeutics Inc. market; the limited public trading market for BrainStorm Cell Therapeutics Inc. stock which may never develop into an active market; and other factors detailed in BrainStorm Cell Therapeutics Inc. annual report on From 10-KSB, quarterly reports on Form 10-QSB, current reports on From 8-K and other filings with the Securities and Exchange Commission available at http://www.sec.gov/ or by request to the Company.