BrainStorm Cell Therapeutics Responds to the Veto of the Stem Cell Research Enhancement Act (HR-810).

NEW YORK -- Adult Stem Cell Research Shows Extremely Promising Results and Offers a Promising Alternative to the Controversial Embryonic Stem Cell Approach

BrainStorm Cell Therapeutics (OTCBB:BCLI), a leading company in adult stem cell research, comments on the Stem Cell Research Enhancement Act (HR-810), which was vetoed yesterday by President Bush, and the lesser-known Alternative Pluripotent Stem Cell Therapies Enhancement Act ("S-2754 ES"), which was just passed by the Senate and is expected to be signed by President Bush today.

While there is clearly much controversy and debate surrounding embryonic stem cell research, with passage of S-2754 ES, the President and both Houses agree, as stated in the Act, to "conduct and support basic and applied research to develop techniques for the isolation, derivation, production, or testing of stem cells that, like embryonic stem cells, are capable of producing all or almost all of the cell types of the developing body and may result in improved understanding of or treatments for diseases and other adverse health conditions, but are not derived from a human embryo." In simple terms, they encourage researchers to pursue other venues and explore the potential of stem cells acquired from non-embryonal sources. Consequently, this under-publicized but extremely important Act focuses much needed attention on expediting research and development of adult stem cell-based therapies for neurodegenerative diseases such as Parkinson's and Alzheimer's disease, as well as stroke and spinal cord injuries, among other conditions.

Yoram Drucker, BrainStorm's Chief Operating Officer, notes: "Most of the public is not even aware that adult stem cells can provide a viable and effective alternative to embryonic stem cells for medical research and treatment."

Mr. Drucker continues, "There is no doubt that adult and embryonic stem cells each have desirable qualities and benefits. That being said, adult stem cells do provide certain advantages, even beyond obviating the ethical issues. One significant benefit is that they can be autologous -- the patient can become his or her own donor, so there is no risk of rejection of the differentiated cells, and there would be no need to use anti-rejection medications."

Professor Eldad Melamed, the Company's Chief Medical Officer and the Chief of Neurology at Rabin Medical Center, Tel Aviv University, comments: "Even within the scientific community, there is a misperception that adult stem cells cannot be differentiated to form other types of cells. This is simply not true. Utilizing our patent-pending NurOwn technology, BrainStorm is able to harvest, isolate and expand adult stromal stem cells from human bone marrow and differentiate these cells into neural-like dopamine-producing cells and GDNF-producing cells. We have successfully implanted these cells in Parkinson-induced mice and rats, and the animals have demonstrated marked improvement in their symptoms."

Dr. Holly Atkinson, the Company's Director of Business Development, states: "Clearly, bone marrow is an attractive source of adult stem cell material. The human body has a good supply of it, and there are safe, established procedures for harvesting it. Doctors have been treating patients with bone marrow-based therapies for almost 40 years. This is a known strategy."

Brainstorm Cell Therapeutics has already shown efficacy for its adult stem cell therapies in both mice and rats. The Company is currently in the process of preparing for open human clinical trials in patients with Parkinson's disease, which could begin in the next 12 to 18 months.

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 led by prominent neurologist Professor Eldad Melamed, Head of Neurology at Rabin Medical Center, and expert cell biologist Dr. Daniel Offen, Head of the Neuroscience Laboratory at the Felsenstein Medical Research Center of Tel-Aviv University, enabling the differentiation of bone marrow derived stem cells into functional neurons and astrocytes, 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 can be harvested from fetal or embryonic tissue or from adult tissue reservoirs such as bone marrow. Use of embryonic stem cells is at the center of significant ethical and moral debate. In contrast, use of adult stem cells does not provoke 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, scientists are exploring both embryonic stem cells (ESC) and adult stem cells (ASC) as the potential basis for multiple cell therapy products.

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.'s 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.'s limited operating history, history of losses and expectation to incur losses for the foreseeable future; limited cash resources and its need to raise additional capital to execute on its business plan and continue operations; transition issues related to the departure of its CEO; 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 and on its scientific consultants; efficacy, advancement and acceptance of stem cell technologies and applications, including the technologies of BrainStorm 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.'s market; the limited public trading market for BrainStorm Cell Therapeutics Inc.'s stock which may never develop into an active market; and other factors detailed in BrainStorm Cell Therapeutics Inc.'s annual report on Form 10-KSB, quarterly reports on Form 10-QSB, current reports on Form 8-K and other filings with the Securities and Exchange Commission available at http://www.sec.gov/ or by request to the Company. The Company does not undertake any obligation to update forward-looking statements made by us.