International Stem Cell Corporation Completes a Share Exchange with BTHC III, Inc., Closes $11.2 Million Private Placement.

OCEANSIDE, Calif. -- International Stem Cell Corporation "ISC" (www.intlstemcell.com), a California-based early-stage stem cell therapeutics company, announced today that it has completed a share exchange with BTHC III, Inc. (OTCBB:BTHC). Immediately preceding the consummation of the share exchange transaction, ISC closed a private placement of its capital stock whereby it received approximately $11.2 million in gross offering proceeds, before payment of commissions and fees.

The combined company will be headquartered in Oceanside, California and will operate under the name International Stem Cell Corporation; adopting both ISC's business strategy and that of its subsidiary, Lifeline Cell Technology, LLC, based in Walkersville, Maryland. The combined company will be lead by ISC's current management team. The company is quoted on the Over-The-Counter Bulletin Board under the symbol BTHC.OB. A change in symbol is pending.

As a result of the share exchange transaction, ISC's shareholders, including participants in its private offering, were issued 33,111,502 shares of BTHC's common stock in exchange for their shares of ISC. As a result of the share exchange transaction, ISC became a wholly-owned subsidiary of BTHC.

In connection with the share exchange transaction, Kenneth C. Aldrich, Chairman and Co-Founder of ISC, was appointed to the Board of Directors of BTHC and will serve as the Chairman of the Board. Jeff Krstich, CEO of ISC, and William B. Adams, Co-Founder and Chief Financial Officer of ISC, were appointed as the Chief Executive Officer and Chief Financial Officer of BTHC, respectively. Jeffrey Janus, President of ISC and Co-Founder of Lifeline, was appointed as the President of the Registrant and will remain Chief Executive Officer of Lifeline.

Messrs. Krstich, Adams and Janus will become members of BTHC's Board of Directors effective upon the 10th day following the mailing by BTHC to its shareholders of an information statement that complies with the requirements of Rule 14f-1 under the Securities Exchange Act of 1934.

ABOUT INTERNATIONAL STEM CELL CORPORATION:

International Stem Cell is a biotechnology company currently focused on developing therapeutic and research products. In the area of therapeutic product development, ISC's objective is to create an unlimited source of human cells for use in the treatment of several diseases including diabetes, liver disease and retinal disease through cell transplant therapy. In furtherance of this objective, ISC is currently developing human stem cells, techniques to cause those stem cells to be "differentiated" into the specific cell types required for transplant, and manufacturing protocols to produce the cells without contamination with animal by-products, a characteristic likely to be important in meeting U.S. Food and Drug Administration requirements. For more information, visit the ISC website at: www.intlstemcell.com.

FORWARD LOOKING STATEMENT

This news release contains forward-looking statements relating to the business of ISC and its subsidiary. Investors are cautioned that such forward-looking statements regarding ISC, its technology, clinical development and potential applications, constitute forward-looking statements that involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need to obtain future capital, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. International Stem Cell Corporation disclaims any intent or obligation to update these forward-looking statements.