BrainStorm Makes Progress Towards Human Stem Cell Therapy for Parkinson's -- Animal Model Shows Long-Term Benefit.

NEW YORK & TEL AVIV, Israel -- BrainStorm Cell Therapeutics (OTCBB:BCLI), the developer of NurOwn(TM) bone marrow derived stem cell therapeutic products for the treatment of Parkinson's and other neurodegenerative diseases, announced today the results of a follow-up preclinical study evaluating the long-term impact of the company's dopaminergic cell treatment for Parkinson's disease.

The results of the study, which was conducted by the Company's scientific collaborators at Tel Aviv University, demonstrate remarkable therapeutic benefit of the Company's human bone marrow stem cell derived NurOwn (TM) cells.

"BrainStorm's success in being able to develop human-derived dopaminergic stem cells that can survive and significantly improve the condition of Parkinson's animal models over a lengthy period of time is a major breakthrough. This exciting finding will pave the way for us to move ahead with plans to apply our therapy to human patients," said Yoram Drucker, Principal Executive Officer of BrainStorm.

The study results demonstrated a more than fifty percent reduction in the animals' rotational movement, seven months after implantation. The study significantly shows superior advantage of the Company's cell differentiation technology over the use of undifferentiated mesenchymal stem cells.

Dr. Daniel Offen, BrainStorm's Chief Scientist observed that, "Unlike competitive approaches that aim to use bone marrow stem cells directly, our therapeutic strategy is based on a unique process for differentiating bone marrow stem cells into neural-like cells capable of secreting dopamine, the substance that is depleted in Parkinson's patients."

"The great improvement in motor function in the Parkinsonian animals after such a long-term treatment with our adult stem cell therapy indicates its highly-promising long-term restorative potential," said Prof. Eldad Melamed, the Company's Chief Medical Advisor and Chairman of its Scientific Advisory Board.

In other studies, Brainstorm has successfully used bone marrow stem cells to produce astrocyte-like cells with the capacity of producing glial derived neurotrophic factor (GDNF). Both dopamine and GDNF producing cells hold great promise for replacement and preservation of neurons in Parkinson's and other neurodegenerative diseases.

Working with human bone marrow stem cells, BrainStorm also has achieved differentiation of human bone marrow stem cells into neural-like cells capable of dopamine secretion.

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 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 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; 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; 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.