Medistem Laboratories Executes Agreement to License its Intellectual Property to Institute for Cellular Medicine; Agreement to Enable Clinical Research Programs and Delivery of Medistem's Stem Cell Therapies by ICM.

SCOTTSDALE, Ariz. -- Medistem Laboratories, Inc. (OTCBB:MDSM)(FWB:S2U), committed to the ethical development of next-generation medical therapies from non-controversial adult stem cell sources, has announced that it has executed a technology licensing and royalty agreement with the Institute for Cellular Medicine (ICM), an international laboratory and clinic affiliate. The licensure allows ICM to perform clinical programs to further develop Medistem's stem cell therapies and treat patients on a fee-for-service basis at ICM's facility in San Jose, Costa Rica.

The licensing agreement stipulates that ICM will pay royalties to Medistem for the use of Medistem's technologies. In addition to royalties, all intellectual property developed by ICM through their research and clinical treatment programs will be the property of Medistem.

ICM has acquired the lease for their new laboratory and clinical facility. Revenue-generating operations are expected to begin before the end of the second quarter, subsequent to receipt of all necessary government approvals and completion of operational preparations. Medical personnel at ICM's facility will deliver Medistem-developed therapies on a fee-for-service basis, in addition to conducting clinical studies to further develop Medistem technologies and IP portfolio. The clinic will initially focus on stroke patients, with the hope that the therapies will aid in restoring motor skills and other neurological damage caused by stroke.

"The preparation and anticipated opening of the ICM clinical facility next quarter in San Jose, Costa Rica is a major milestone in Medistem's strategic business plan to develop the promise of stem cell therapies for medical care," said Neil Riordan, Ph.D., Chairman and CEO of Medistem. "Research at the world's leading scientific institutions continues to demonstrate the potential of stem cell-derived therapies to provide benefits for people suffering from a wide range of serious diseases, including cancer and chronic neurological and other medical conditions. We are excited to have entered this next phase in our business plan with our colleagues at the Institute for Cellular Medicine."

The execution of the newly completed licensing agreement with ICM and the establishment of the laboratory and clinical facility were key elements of Medistem's recently announced strategic initiatives for the coming 12-month period. Other current Medistem strategic initiatives and goals include the following:

--Implement revenue-generating business model immediately following opening of ICM clinic via fee-based stem cell treatments using Medistem technology and therapies;

--Continue laboratory research to develop treatments for stroke and other conditions;

--Expansion of intellectual property portfolio: Last week, Medistem announced the acquisition of worldwide patent pending rights to a potential treatment for cancer that uses stem cells to reprogram malignant cells to behave like normal cells;

--Expedite IP expansion through continued clinical developments, particularly of new methods for expansion of stem cell types;

--Build additional IP through acquisitions of targeted proprietary technologies;

--Expand business and revenue growth opportunities through replication of fee-for-service revenue model in new global clinics/markets;

--Identify and pursue establishment of new global locations for clinics, with plans to open clinics approximately every 9-12 months.

About Medistem Laboratories, Inc.

Medistem Laboratories is an innovative biotechnology company committed to the creation and commercialization of advanced medical therapies based on non-controversial adult stem cells. Medistem's corporate mission is to transform these stem cells into valuable medical treatments. The Company intends to create these treatments from adult stem cells derived from muscle, bone marrow and fat of adult patients seeking treatment, as well as from full-term, healthy placentas and umbilical cords, but not the controversial embryonic or fetal stem cells that are the focus of ethical and moral debates in some communities. The Company's business strategy calls for the establishment of a series of clinics and laboratories around the world to deliver unprecedented, next-generation cell therapies to help millions of patients. Initial development and treatment focus will use proprietary technology and cells sourced from umbilical cords, fat, bone marrow, and muscle for advanced treatment of cerebral palsy, stroke, cardiovascular disease and orthopedic diseases, primarily for the international marketplace. Additional applications, ultimately be targeted to the treatment of neurological disorders such as Parkinson's, Alzheimer's and certain types of cancer. Medistem believes it may hold a substantial competitive edge in the worldwide emerging market for stem cell-sourced medical solutions, positioning it to become a leading global provider of stem cell treatments on a fee-for-service basis, while accumulating intellectual property based on clinical and laboratory findings. For more information, please visit http://www.trilogy-capital.com/tcp/medistem/. To read or download Medistem's Investor Fact Sheet, please visit http://www.trilogy-capital.com/tcp/medistem/factsheet.html. To obtain daily and historical Company stock quote data, and recent Company news releases, visit http://www.trilogy-capital.com/tcp/medistem/quote.html. Medistem is traded on the Frankfurt, Germany, stock exchange under the symbol S2U.

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