International Stem Cell Corporation Announces Collaboration with Michigan State University to Study Parthenogenetic Stem Cells

Oceanside, California, July 8, 2008 -- International Stem Cell Corporation (OTCBB: ISCO), announced today a new collaboration with leading stem cell researcher Jose Cibelli at Michigan State University as part of ISCO’s ongoing strategy to work with scientific leaders across the world to expand the scientific data relating to parthenogenetic stem cells.

Professor Cibelli will study gene expression in several human parthenogenetic stem cell lines and compare the results with fertilized embryonic stem cells. According to Professor Cibelli, “We have observed in mouse and monkey that imprinting in parthenogenetic cells changes as the cells are cultured. This in vitro phenomenon can be advantageous for parthenogenetic cells.”

ISCO is the first company in the world to perfect a process for creating human stem cells from unfertilized eggs. These cells are called “parthenogenetic” stem cells and they alleviate two critical problems inherent to the use of embryonic stem cells for cell transplantation, immune rejection and ethical issues associated with the use of fertilized human embryos. Such cells can be “matched” to the immune systems of millions of persons. ISCO’s goal is to create a “cell bank” of clinical grade parthenogenetic cells available for immediate use without having to isolate cells from the patient’s own body or depend on cells isolated from other living individuals.

“Collaborations with leading researchers such as Dr. Cibelli and Michigan State University generate important knowledge about these unique cells, helping in ISCO’s goal of creating a true stem cell bank that could offer on-demand delivery of clinical grade cells matched to a patient’s own immune system”, said Jeffrey Janus, President of International Stem Cell Corporation.

ISCO’s discovery of a way to make parthenogenetic cells that match the immune system of millions of persons was first announced in December, 2007 in a peer reviewed paper authored by ISCO’s CSO, Dr. Elena Revazova, MD, PhD, entitled “HLA Homozygous Stem Cell Lines Derived from Human Parthenogenetic Blastocysts”, published in the online edition of Cloning and Stem Cells Journal: http://www.liebertonline.com/doi/pdfplus/10.1089/clo.2007.0063. One such line, identified as hpSC-Hhom-4, was found to match the most common immune types found across the United States, opening the door to potential therapeutic application for tens of millions of people of different races, sexes and ages.

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB):

International Stem Cell Corporation is a California biotechnology company focused on developing therapeutic and research products. ISCO’s technology, Parthenogenesis, results in the creation of pluripotent human stem cell lines from unfertilized human eggs. ISCO scientists have created the first Parthenogenetic homozygous stem cell line (phSC-Hhom-4) that can be a source of therapeutic cells that will not be immune rejected after transplantation into millions of individuals of differing sexes, ages and racial groups. These advancements offer the potential to create the first true “Stem Cell Bank” and address ethical issues by eliminating the need to use or destroy fertilized embryos. ISCO also produces and markets specialized cells and growth media worldwide for therapeutic research through its subsidiary Lifeline Cell Technology. For more information, visit the ISCO website at: www.internationalstemcell.com.

To subscribe to receive ongoing corporate communications please click on the following link:

http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0

Forward-Looking Statements

Statements pertaining to future financial and/or operating results, future growth in research, technology, clinical development and potential opportunities for the company and its subsidiary, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as “will,” “believes,” “plans,” “anticipates,” “expects,” “estimates,”) should also be considered to be forward-looking statements. Forward-looking statements 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 and ability to obtain future capital, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such 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. The company disclaims any intent or obligation to update these forward-looking statements.

Contacts:

International Stem Cell Corporation

Jeffrey Janus, President

jjanus@intlstemcell.com

760-940-6383

or

William Adams, Chief Financial Officer

wadams@intlstemcell.com

760-940-6383