NeoStem Signs First Adult Stem Cell Collection Center Agreement.

NEW YORK -- NeoStem, Inc. (OTCBB: NEOI), a company pioneering autologous Adult Stem Cell (ASC) collection and banking service for the general population for long-term storage for multiple therapeutic uses, today announced the signing of its first collection center agreement with Ron Rothenberg MD, FACEP. This is the beginning of NeoStem's launch to facilitate the opening of adult stem cell collection centers nationally and internationally.

Dedicated to the belief that the process of physical aging can be slowed, stopped or even reversed through existing medical and scientific interventions, Dr. Rothenberg believes that autologous Adult Stem Cells (where donor and recipient are the same - "Your Cells Your Use") can play an important role in emerging anti-aging treatments.

Dr. Rothenberg, a Fellow of the American College of Emergency Physicians (FACEP) and a pioneer in Anti-Aging Medicine, will operate the collection center within his practice at the California HealthSpan Institute in Encinitas, California. Dr. Rothenberg was the 10th M.D. in the world to become fully board certified by the American Board of Anti-Aging Medicine. A graduate of Columbia University, College of Physicians and Surgeons, and a specialist in Emergency Medicine at Los Angeles County-USC Medical Center, he has served as Clinical Professor of Preventive and Family Medicine at the UCSD School of Medicine Clinical Facility. He is currently Attending Physician at Scripps Memorial Hospital in Encinitas. (More information regarding Dr. Rothenberg is available at: www.ehealthspan.com and at www.californiaantiaging.com/treatment/bios/asp).

Dr. Rothenberg stated, "I am delighted to be operating NeoStem's first collection center and to be able to offer those patients interested in rejuvenation and anti-aging, the ability to bank their stem cells for the future. Such centers provide essential services that allow adults to have their stem cells safely collected and conveniently banked for personal use as needed. I believe that such stem cells are likely to become an important element in regenerative medicine and treatment for numerous diseases, including physical aging. They have already provided helpful treatment in certain cases of heart disease, radiation exposure and wound healing and we anxiously await more indications in the coming decade."

NeoStem's CEO, Robin L. Smith, M.D., MBA, said, "We are very pleased to work with Dr. Rothenberg to launch this partnership with his institute. He has been a pioneer not only in Anti-Aging Medicine but also in Emergency Medicine, helping to build these fields into recognized specialties. His willingness to explore new information and practices that may improve health and assist individuals to remain functionally and physically young is consistent with NeoStem's mission."

About NeoStem, Inc.

NeoStem, Inc. (OTCBB:NEOI), formerly Phase III Medical, Inc. (OTCBB:PHSM), is an innovative, publicly traded company positioned to become a leader in the adult stem cell field and to capitalize on the increasing importance adult stem cells are expected to play in the future of regenerative medicine.

Using its proprietary process, NeoStem provides the infrastructure, methods and systems that allow adults to have their stem cells safely collected and conveniently banked for future therapeutic use, as needed, in the treatment of such life-threatening diseases as diabetes, heart disease and radiation sickness that may result from a bio-terrorist attack. Adult stem cell therapy has also been used for many years in treating blood cancer. Further potential uses include regenerative therapies for wound healing, autoimmune diseases such as multiple sclerosis and lupus, and age-related degenerative musculoskeletal diseases.

NeoStem uses the least invasive form of collection called apheresis, a well known safe procedure that extracts stem cells from an adult's peripheral blood. Once collected, NeoStem's storage process allows the cells to be cryo-preserved during an individual's lifetime for use when needed. The management, Board of Directors and Advisors of NeoStem collectively have significant technical, medical and scientific expertise as well as substantial experience in life science marketing and business development.

NeoStem recently established an adult stem cell processing laboratory and long-term storage facility at the Good Samaritan Hospital complex in Los Angeles, licensed by the State of California Department of Health Services. The Company plans to open ASC collection centers in various locations and facilities across the nation and anticipates collaborations and strategic partnerships with pharmaceutical companies, medical institutions and other customers that will use NeoStem technology for an upfront fee and ongoing revenues for processing and storage.

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning the Company's ability to develop the adult stem cell business, the future of regenerative medicine and the role of adult stem cells in that future, the future use of adult stem cells as a treatment option and the potential revenue growth of NeoStem's business. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. The Company's ability to enter the adult stem cell arena and future operating results are dependent upon many factors, including but not limited to (i) the Company's ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) the Company's ability to build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control;(iv) scientific and medical developments beyond the Company's control and (v) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission which are available for review at www.sec.gov under "Search for Company Filings."

Pursuant to a July 1, 2006 agreement, Consulting For Strategic Growth I, Ltd. ("CFSG1") provides the Company with consulting, business advisory, investor relations, public relations and corporate development services, for which CFSG1 receives a fixed monthly fee for the duration of the agreement. Independent of CFSG1's receipt of cash or other compensation from the Company, CFSG1 may choose to purchase the common stock of the Company and thereafter sell those shares at any time it deems appropriate to do so. For more information, please visit www.cfsg1.com.