International Stem Cell Corp’s Lifeline Cell Technology Products to be added to Fisher Scientific’s Catalogs

CARLSBAD, Calif.—October 25, 2012 (MARKET WIRE)-- International Stem Cell Corporation (OTCQB: ISCO) (www.internationalstemcell.com) (“ISCO” or “the Company”) a California-based biotechnology company focused on therapeutic and research products, today announced that its subsidiary, Lifeline Cell Technology (LCT), will begin selling products through Fisher Scientific, Inc.’s (“Fisher Scientific”) online catalogue as an Encompass Preferred Supplier.

Typically large pharmaceutical companies buy research supplies and products using preferred supplier agreements. Fisher Scientific is the world’s largest such supplier to the life science industry with over 350,000 customers and $12 Billion in annual sales. Their third party e-catalog sales have grown from $26 million in 2006 to $424 million in 2011 and represent a promising new sales channel for Lifeline Cell Technology’s cell and media products.

Dr. Simon Craw, ISCO’s Executive Vice President of Business Development explained, “This is a tremendous opportunity and a testament to the high quality of Life Line Cell Technology’s products. By working with Fisher Scientific, LCT will be able to reach many more customers that we would otherwise not be able to reach. One of the biggest challenges we faced was the ability to sell into pharmaceutical companies that have preferred supplier agreements. Our inclusion in the Fisher e-catalogs and Encompass Preferred Suppliers list, not only validates LCT’s focus on delivering high quality products but also means these products can now be purchased much more easily by scientists working at the some of the world’s largest life science companies.”

Nobel Prize in Physiology or Medicine 2012 was awarded jointly to Sir John B. Gurdon and Shinya Yamanaka

Today the Nobel Prize in Physiology or Medicine 2012 was awarded jointly to Sir John B. Gurdon and Shinya Yamanaka "for the discovery that mature cells can be reprogrammed to become pluripotent"
Follow the link to read more  (http://www.nobelprize.org/nobel_prizes/medicine/laureates/2012/)

In 1962, John Gurdon of Cambridge University showed that a new tadpole could be created by taking the genetic information (nucleus) from the intestine cell of an adult frog and implanting it into an unfertilized frog egg.  This led him to conclude that the intestine cell contains all the genetic information need to create a whole new frog, and that the process of specialization in cell development is reversible.  It was the first time in the world that this has been achieved and was considered no more than a scientific curiosity for many years.  However, this discovery would eventually lead to a technology called somatic cell nuclear transfer (SCNT), and is responsible for Dolly the sheep.

Over forty years later in 2006 Shinya Yamanaka of Kyoto University showed in a series of experiments on mice that adult mouse cells could be reprogrammed into stem cells by modifying the genetic information (gene) in those cells.  Rather than transferring the genetic information into an egg, like Gurdon, he altered the existing information in an adult cell, essentially reprogramming the cell.  These stem cells are known as induced pluripotent stem cells (iPS) and are an extremely important area of stem cell research.

International Stem Cell Corporation (ISCO) does not use either of these techniques, as both methods pose problems when the treatment of human diseases is the goal.  SCNT because it is essentially cloning which is immoral as well as illegal, and iPS because it involves considerable reprogramming of the cell's genes, leading to serious safety concerns.  ISCO uses a third method called parthenogenesis, which stimulates unfertilized human eggs chemically allowing them to start dividing.  The stem cells derived in this way are similar to embryonic stem cells, but avoid the ethical controversy associated with the destruction of a viable human embryo. ISCO is using these stem cells to develop treatments for Parkinson’s disease, inherited metabolic liver diseases and corneal blindness.

International Stem Cell Corp Granted Key Patent for Liver Disease Program

CARLSBAD, CA—September 25, 2012 (MARKET WIRE)-- International Stem Cell Corporation (OTCQB: ISCO) (www.internationalstemcell.com) (“ISCO” or “the Company”) a California-based biotechnology company, today announced that the United States Patent and Trademark Office (USPTO) has granted the Company a patent for a method of creating pure populations of definitive endoderm, precursor cells to liver and pancreas cells, from human pluripotent stem cells. This patent is a key element of ISCO’s metabolic liver disease program and allows the Company to produce the necessary quantities of precursor cells in a more efficient and cost effective manner.

The patent, 8,268,621, adds to the Company’s growing portfolio of proprietary technologies relating to the development of potential treatments for incurable diseases using human parthenogenetic Stem Cells (hpSC). Human parthenogenetic stem cells are unique pluripotent stem cells that offer the possibility to reduce the cost of health care while avoiding the ethical issues that surround the use of fertilized human embryos. Aside from the Company’s current liver disease program, this new patented method can be used as a route to create pancreatic and endocrine cells that could be used in future studies of diabetes and other metabolic disorders.

ISCO currently has the largest collection of hpSC including cell lines which immune match the donor, as is the case with induced pluripotent stem cells (iPS), and cell lines which immune-match millions of individuals and potentially reduce tissue rejection issues. The Company is focusing its therapeutic development efforts on three clinical applications where cell and tissue therapy is already proven but where there currently is an insufficient supply of safe and efficacious cells: Parkinson’s disease, inherited/metabolic liver diseases and corneal blindness.

ISCO on Seeking Alpha again

Progress in ISCO's Parkinson's disease program was showcased in Seeking Alpha this morning.  The article discusses some big pharma approaches as well as ISCO's and two other small biotechs.


http://seekingalpha.com/article/812171-parkinson-s-disease-3-different-firms-3-novel-approaches

ISCO adds two new scientific advisors

ISCO has attracted two talented and well-known scientists to help with our Parkinson's disease program.  This will really help progress the PD program.

See the full press release here

http://www.internationalstemcell.com/profiles/investor/ResLibraryView.asp?ResLibraryID=56667&GoTopage=1&Category=958&BzID=1468&G=583

International Stem Cell Corp Announces Second Quarter 2012 Financial Results

CARLSBAD, CA -- (Marketwire) -- 08/09/12 -- International Stem Cell Corporation (OTCQB: ISCO) (www.internationalstemcell.com) ("ISCO" or "the Company"), a California-based biotechnology company focused on therapeutic and research products, today announced financial results for the three and six months ended June 30, 2012. Three and Six Months Ended June 30, 2012 Revenue for the three months ended June 30, 2012 totaled $1.06 million compared to $1.11 million for the three months ended June 30, 2011. The decrease in revenue was due largely to lower sales generated from Lifeline Cell Technology (LCT). LCT and Lifeline Skin Care (LSC) each accounted for approximately 50% total revenue in the three months ended June 30, 2012 compared to 52% and 48%, respectively, in the corresponding periods the prior year. Revenue for the six months ended June 30, 2012 was $2.13 million compared to $2.63 million for the corresponding period in 2011. The decrease in revenue was due principally to fewer sales generated from LSC, partially offset by LCT's higher sales generated from larger distributors. For the six months ended June 30, 2012, LSC generated $1.07 million or 50% of total revenue, compared to $1.66 million or 63% of total revenue for the corresponding period in 2011. For the six months ended June 30, 2012, LCT generated $1.06 million or 50% of total revenue, compared to $0.97 million or 37% of total revenue for same period in 2011. Research and development expenses (R&D) were $0.87 million for the three months ended June 30, 2012, representing a decrease of approximately 23% compared to the corresponding period in 2011. The decrease was due primarily to lower consulting expenses associated with various research projects, lower stock-based compensation expense, lower laboratory-related expenses, and lower personnel-related spending. The decrease was partially offset by higher stem cell line research and testing expenses. R&D expenses were $1.80 million for the six months ended June 30, 2012, compared to $2.13 million for the same period in 2011. The 15% decrease was due primarily to lower consulting expenses associated with various research projects, lower stock-based compensation expense, lower laboratory-related expenses, and reduced travel expenses, partially offset by higher stem cell line research and testing expenses and higher personnel-related spending associated with higher headcount and increased research activities. The Company continues to invest in its sales and marketing initiatives. Marketing expenses for the three months ended June 30, 2012 were $0.55 million, an increase of 58% from the same period in 2011. The increase was primarily driven by investments in marketing and promotion, advertising, higher shipping and logistic expenses, additions of sales and customer service staff, higher consulting expense and higher commission paid to various strategic partners. The increase was partially offset by a reduction in commission paid to a consultant who promoted, marketed, and sold skin care products through various proprietary mailings and employee stock-based compensation. For the six months ended June 30, 2012, marketing expenses amounted to $1.04 million, reflecting an increase of $0.38 million or 57%, as compared to $0.66 million for the corresponding period in 2011. The substantial increase was primarily driven by increased investments in marketing support, promotion, and advertising, higher consulting expense, higher shipping and logistic expenses, higher personnel-related expenses resulting from higher headcount in the sales and marketing of the skin care products, and higher commission paid to various strategic partners. The increase was partially offset by a reduction in sales commission paid to a consultant who promoted, marketed, and sold skin care products through various proprietary mailings and lower employee stock-based compensation. General and administrative expenses for the three months ended June 30, 2012 were $1.76 million, down 18% compared to the same period in 2011, as a result of ongoing operational efficiency initiatives. The decrease resulted largely from lower employee stock-based compensation, reduced employee-related spending resulting from lower headcount, lower professional accounting fees, and lower corporate support expenses. The decrease was partially offset by higher legal fees relating to our corporate activities, and higher consulting expense. General and administrative expenses for the six months ended June 30, 2012 were $3.79 million, reflecting a decrease of $0.58 million or 13%, compared to $4.37 million for the same period in 2011. The decrease was primarily attributable to lower employee stock-based compensation, the absence of stock-based compensation incurred for services provided by a consultant, reduced employee-related spending resulting from lower headcount, and lower corporate support expenses. The decrease was partially offset by an increase in legal fees relating to our corporate expenses, higher consulting expense, and higher professional accounting fees related to Sarbanes-Oxley compliance efforts. Cash and cash equivalents totaled $4.29 million at June 30, 2012 compared to $1.34 million as of December 31, 2011, due primarily to two financing transactions totaling approximately $6.9 million completed in the first six months of 2012 partially offset by normal business operations. "We have made solid progress across our entire organization in the first half of this year," stated Dr. Andrey Semechkin, ISCO's CEO and Co-Chairman, "and I'm pleased to see that the operational efficiencies we implemented in the second quarter are resulting in lower administrative expenses. Going forward we will continue to look for further opportunities to improve our organization effectiveness and reduce expenses. As you may have read in my shareholder letter, following a detailed analysis of our research priorities, we concentrated our resources on the most promising therapeutic programs and this has already resulted in exciting achievements and progressed our programs closer to clinical development." Q2 2012 Highlights: We developed a new method to derive high-purity populations of neural stem cells from human parthenogenetic stem cells (hpSC) and further differentiate them into dopaminergic neurons. This method is highly efficient and capable of generating sufficient quantities of neuronal cells for our pre-clinical and clinical studies. In our Parkinson's disease (PD) program we have shown in rodent models that our neurons can survive after implantation and release dopamine. The data was presented at the 64th Annual Meeting of American Academy of Neurology in New Orleans (April 21 to 28, 2012) and at the 15th Annual Meeting of American Society of Gene and Cell Therapy, in Philadelphia (May 17, 2012). In our metabolic diseases program, we have shown that our immature hepatocyte-like cells derived from our hpSC can successfully engraft and mature in rodents and produce liver specific proteins. This data was presented at the 15th Annual Meeting of American Society of Gene and Cell Therapy, in Philadelphia (May 17, 2012). Regarding our corneal blindness program we have developed differentiation technology to create endothelium-like cells, a significant step towards creating complete corneas that could be used in transplantation. We improved our operational efficiency and streamlined our business processes by moving our accounting department from Frederick, Maryland to Carlsbad, California enabling us to reduce our overhead. Lifeline Skin Care engaged two influential affiliate partners: Dr. Elizabeth Hale, one of the nation's top dermatologists and skincare expert for the Dr. Oz Show and the Today Show, and Jeri Thompson, a conservative radio and TV guest and advocate for non-embryonic stem cell research. Lifeline Cell Technology developed a new technology to modify human stem cells using engineered proteins, called transducible transcription factors (TTF). TTFs are designed to pass into stem cells and direct the stem cells to change into specific cell types that can be both therapeutically useful and potentially a revenue-generating research product. Conference Call and Webcast Details: Date: Friday, August 10, 2012 Time: 11:00 a.m. Eastern Time Conference Call Dial-in Numbers Participants from US Domestic: 1 877 317-6776 Participants from International: 1 412 317-6776 Conference ID: 10017300 Webcast link: http://webcast.mzvaluemonitor.com/Home/Login/7fd6c4da-37f0-472c-9f28-cd9eb1b99f87 Replay of the conference call will be available for two week following 1 hour after the end of the conference call through end date: Aug 24, 2012 at 9:00 am ET. Teleconference Replay Details: US Domestic: 1-877-344-7529 International: 1-412-317-0088 Conference ID: 10017300 About International Stem Cell Corporation International Stem Cell Corporation is focused on the therapeutic applications of human parthenogenetic stem cells (hpSCs) and the development and commercialization of cell-based research and cosmetic products. ISCO's core technology, parthenogenesis, results in the creation of pluripotent human stem cells from unfertilized oocytes (eggs). hpSCs avoid ethical issues associated with the use or destruction of viable human embryos. ISCO scientists have created the first parthenogenic, homozygous stem cell line that can be a source of therapeutic cells for hundreds of millions of individuals of differing genders, ages and racial background with minimal immune rejection after transplantation. hpSCs offer the potential to create the first true stem cell bank, UniStemCell?. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary Lifeline Cell Technology (www.lifelinecelltech.com), and stem cell-based skin care products through its subsidiary Lifeline Skin Care (www.lifelineskincare.com). More information is available 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 Safe harbor statement  Statements pertaining to anticipated developments, potential sales growth, new products and distribution channels and other opportunities for the company and its subsidiaries, 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 and the management of collaborations, regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, 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 forward-looking statements. International Stem Cell Corporation and Subsidiaries (A Development Stage Company) Condensed Consolidated Balance Sheets (in thousands, except share data) June 30, December 31, 2012 2011 (Unaudited) Assets Cash and cash equivalents $ 4,285 $ 1,337 Accounts receivable, net 210 140 Inventory, net 1,272 1,268 Prepaid expenses and other current assets 291 274 Total current assets 6,058 3,019 Property and equipment, net 1,246 1,420 Intangible assets, net 1,589 1,282 Deposits and other assets 16 16 Total assets $ 8,909 $ 5,737 ============ ============ Liabilities, Redeemable Preferred Stock and Stockholders' Equity Accounts payable $ 995 $ 777 Accrued liabilities 781 752 Deferred revenue 134 189 Related party payable 77 108 Advances 250 250 Warrants to purchase common stock -- 38 Total current liabilities 2,237 2,114 Convertible Redeemable Series G Preferred stock, $0.001 par value, 5,000,000 shares and 0 were authorized, issued and outstanding at June 30, 2012 and December 31, 2011, respectively, liquidation preferences of $5,092 and $0 at June 30, 2012 and December 31, 2011, respectively 5,033 -- Commitments and contingencies Stockholders' Equity Series D Preferred stock, $0.001 par value, 50 shares authorized, 43 issued and outstanding at June 30, 2012 and December 31, 2011 -- -- Series A Preferred stock, $0.001 par value, 0 and 5,000,000 shares authorized at June 30, 2012 and December 31, 2011, respectively, 0 and 500,000 issued and outstanding at June 30, 2012 and December 31, 2011, respectively, liquidation preferences of $0 and $615 at June 30, 2012 and December 31, 2011, respectively 0 1 Series B Preferred stock, $0.001 par value, 5,000,000 shares authorized, 300,000 issued and outstanding at June 30, 2012 and December 31, 2011, liquidation preferences of $376 and $367 at June 30, 2012 and December 31, 2011, respectively 0 0 Series C Preferred stock, $0.001 par value, 3,000,000 shares authorized, 2,000,000 issued and outstanding at June 30, 2012 and December 31, 2011, liquidation preferences of $2,447 and $2,387 at June 30, 2012 and December 31, 2011, respectively 2 2 Common stock, $0.001 par value, 300,000,000 shares authorized, 87,238,815 and 80,036,315 issued and outstanding at June 30, 2012 and December 31, 2011, respectively 87 80 Additional paid-in capital 68,755 63,995 Deficit accumulated during the development stage (67,205) (60,455) Total stockholders' equity 1,639 3,623 Total liabilities, redeemable preferred stock and stockholders' equity $ 8,909 $ 5,737 ============ ============ International Stem Cell Corporation and Subsidiaries (A Development Stage Company) Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) Inception (August 17, 2001) Three Months Ended Six Months Ended through June 30, June 30, June 30, 2012 2011 2012 2011 2012 Revenues Product sales $ 1,056 $ 1,114 $ 2,133 $ 2,629 $ 9,764 Royalties and license -- -- -- -- 135 Total revenue 1,056 1,114 2,133 2,629 9,899 Development expenses Cost of sales 313 362 637 791 3,971 Research and development 865 1,129 1,802 2,132 20,096 Marketing 548 346 1,044 664 4,918 General and administrative 1,755 2,135 3,794 4,369 35,478 Total development expenses 3,481 3,972 7,277 7,956 64,463 Loss from development activities (2,425) (2,858) (5,144) (5,327) (54,564) Other income (expense) Settlement with related company -- -- -- -- (93) Miscellaneous expense (56) (12) (54) (11) (235) Dividend income -- -- -- -- 94 Interest expense -- -- -- -- (2,225) Sublease income 4 2 7 5 316 Change in market value of warrants -- 479 38 1,349 (1,357) Total other income (expense), net (52) 469 (9) 1,343 (3,500) Loss before income taxes (2,477) (2,389) (5,153) (3,984) (58,064) Provision for income taxes -- -- -- -- 7 Net loss $ (2,477) $ (2,389) $ (5,153) $ (3,984) $ (58,071) ========= ========= ========= ========= ========== Deemed dividend on preferred stock $ -- $ -- $ (1,375) $ -- $ (1,375) Dividends on preferred stock $ (139) $ (107) $ (222) $ (213) $ (8,189) Net loss attributable to common stockholders $ (2,616) $ (2,496) $ (6,750) $ (4,197) $ (67,635) ========= ========= ========= ========= ========== Net loss per common share-basic and diluted $ (0.03) $ (0.03) $ (0.08) $ (0.06) ========= ========= ========= ========= Weighted average shares-basic and diluted 87,106 76,340 84,446 75,842 ========= ========= ========= ========= Contacts:International Stem Cell Corporation Dr. Simon Craw Executive Vice President Phone: 760-940-6383 Email: Email Contact Linh Nguyen Chief Financial Officer Phone: 760-940-6383 Email: Email Contact Investor Relations: MZ Group Mark McPartland Senior Vice President Phone: 212-301-7130 Email: Email Contact Web: www.mzgroup.com

Important message concerning ISCO's ticker symbol and price quotes

Dear Shareholder,   We have been made aware that some sources of financial data and websites are incorrectly stating the tier where our stock is traded.  Since OTCMarkets upgraded their trading platform yesterday, some finance sites such as Google are now mis-characterizing our market tier.     Our stock continues to be quoted in the OTCQB markets as usual, but now using the OTC Link platform exclusively. This is a significant benefit to ISCO since, instead of only one or two market makers, as we have had in recent months, we now have multiple market makers quoting bid and asked prices for our stock. We believe that over time that will result in a more stable market for our shares and more “transparency” for investors.    For an example of this, we suggest you look at http://www.otcmarkets.com/stock/ISCO/quote , which will show the number of market makers in our stock and what each is quoting as its bid and asked prices. You might also find it interesting to click on the “short sales” tab, which will show you that short interest in ISCO stock declined by over 95% in the month of June.     As an ISCO investor you may want to use www.OTCMarkets.com as your real time source of our financial data, as other websites may still be incorrectly displaying our previous tier listing.

2012 Letter to Shareholders

CARLSBAD, CA -- (Marketwire) -- 07/18/12 -- International Stem Cell Corporation (OTCBB: ISCO),www.internationalstemcell.com, a California-based biotechnology company focused on therapeutic and research products, announced today that Co-Chairman of the Board and Chief Executive Officer Andrey Semechkin PhD has published a letter to shareholders.

The letter addresses recent corporate governance and operational changes, as well as providing an update on ISCO's Research and Development accomplishments, challenges and 2012 - 2013 major milestones and information on both the Lifeline Skin Care's and Lifeline Cell Technology's recent activities.

The full text of the letter can be found at 

http://www.internationalstemcell.com/2012_Shareholder_Letter

International Stem Cell Corporation Mentioned on Seeking Alpha

In an article titled "Stem Cell Technology's Bright Future" recently posted on Seeking Alpha (link posted below)  the potential of International Stem Cell Corporation immune-matching human parthenogenetic stem cells highlighted.  Seeking Alpha only mentioned five stem cell companies by name, focusing on the different scientific approaches stem cell companies have taken to developing treatments for human diseases.  ISCO remains the only company with pluripotent stem cells that can differentiate into all three germ layers and have the potential to avoid provoking an immunogenic response from the recipients immune system.


It is pleasing to see ISCO's platform start to get the same kind of attention as traditional embryonic stem cells and induced pluripotent stem cells.

http://seekingalpha.com/article/693441-stem-cell-technology-s-bright-future  

Use of HLA-homozygous stem cells to avoid immunogenicity

An interesting paper was just published by a team lead by Jean Villard at the Geneva University Hospital regarding the idea of HLA-homozygous stem cell being used as a bank so that a limited number of lines could cover many individuals.

In the article entitled: Haplotype-Based Banking of Human Pluripotent Stem Cell for Transplantation: Potential and Limitations (Stem Cells and Development,  Volume 21, Number 13, 2012) Villard et al from carefully review available scientific literature, and provide multiple lines of evidence pointing to the generation of  HLA-homozygous pluripotent stem cell banks may be a way towards the sustainable development of regenerative medicine. The paper points out the advantageous effect of complete or partial HLA matching for the graft survival, explaining that such matching process could be greatly facilitated by the use of HLA-homozygous stem cell lines.  The authors write: “All these results indicate that the number of cell lines needed in a pluripotent stem cell bank, which would provide matches for a majority of the population, could be drastically reduced if it contained homozygous lines.” They conclude: “The establishment of multiple regional banks, accounting for the variability of HLA haplotypes in different human populations, should be strongly considered to advance medical and research purposes.”

International Stem Cell Corporation has been advocating such solution ever since its inception in 2005. Its unique technology allows for derivation of transplantation-compatible HLA-homozygous parthenogenetic stem cells.  One of our HLA-homozygous lines carries the most common haplotype in the Caucasian population, present in 4%.

International Stem Cell Corporation Reports Reaching Milestone in Its Cornea Program

CARLSBAD, CA -- (Marketwire) -- 06/28/12 -- International Stem Cell Corporation (OTCBB: ISCO)www.internationalstemcell.com today announced that its Research and Development team has advanced its program to create a functional and transplantable human cornea by developing a new method to derive corneal endothelium-like cells from human pluripotent stem cells. This work represents a significant step towards the creation of complete cornea tissue that can be used for transplantation and supports prior data showing indications of corneal endothelium generated by ISCO's collaborators at Sankara Nethralaya Eye Hospital, India. Such cells by themselves may potentially promote wound healing and regeneration of the cornea and therefore could be used as a standalone medical treatment. Development and commercialization of ISCO's stem cell-derived cornea tissue along with manufacturing of Lifeline Cell Technology's media and cellular products are the foundation for our expansion to the Asian markets and for clinical collaboration with Indian biomedical organizations including Sankara Nethralaya Eye Hospital and All-India Institute for Medical Sciences. Asia represents a huge potential growth market for ISCO's Cornea program. For example, in India alone there are more than 4 million people suffering from corneal vision impairment with limited access to corneal tissue. ISCO's intention is to work with our clinical affiliate in India to meet this healthcare demand. Dr. Ruslan Semechkin, Vice President of Research & Development, commented: "This new method not only brings our cornea program closer to clinical use, but it also gives us additional licensing opportunities. We have made good progress towards our goal of creating usable corneas, however the additional work, necessary to prove that these endothelium-like cells can be fully functional, will be done in conjunction with our collaborators."

International Stem Cell Corporation Scientists Create New Protein-Based Stem Cell Technology

International Stem Cell Corporation (OTCBB: ISCO) www.internationalstemcell.com announced that scientists in its wholly-owned subsidiary, Lifeline Cell Technology (LCT), have developed a technology to modify human stem cells by using engineered proteins, called "transducible transcription factors" or "TTFs." TTFs are designed to pass into stem cells and direct the stem cells to change into specific cell types that can be both therapeutically-useful and can be used as revenue-generating research products.

In contrast to more traditional cell therapy methods this technology does not require the use of viruses or chemicals, and has the potential to produce safe therapeutic cells from stem cells. In addition, the TTF proteins are naturally eliminated by the cells when no longer required, a characteristic that further improves safety. The Company intends that this technology, once perfected, will first be used to create revenue-generating research products for sale through Lifeline Cell Technology's international distribution channels to the academic, biotechnology and pharmaceutical markets for cellular proteins, including the quickly growing markets for the study of stem cell biology and drug testing.

According to Jeffrey Janus, Lifeline Cell Technology's CEO, "These proteins can be sold into the market for cellular proteins which exceeds $700 million and represents an excellent opportunity for LCT to grow sales. Since the technology also has broad application in research and therapy, it should provide ISCO with future out-licensing opportunities to the biotechnology and pharmaceutical industries."

About International Stem Cell Corporation

International Stem Cell Corporation is focused on the therapeutic applications of human parthenogenetic stem cells (hpSCs) and the development and commercialization of cell-based research and cosmetic products. ISCO's core technology, parthenogenesis, results in the creation of pluripotent human stem cells from unfertilized oocytes (eggs). hpSCs avoid ethical issues associated with the use or destruction of viable human embryos. ISCO scientists have created the first parthenogenic, homozygous stem cell line that can be a source of therapeutic cells for hundreds of millions of individuals of differing genders, ages and racial background with minimal immune rejection after transplantation. hpSCs offer the potential to create the first true stem cell bank, UniStemCell™. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary Lifeline Cell Technology (www.lifelinecelltech.com), and stem cell-based skin care products through its subsidiary Lifeline Skin Care (www.lifelineskincare.com). More information is available at www.internationalstemcell.com or follow us on Twitter @intlstemcell.

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 anticipated developments, the potential benefits of research programs and products, and other opportunities for the company and its subsidiaries, 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, regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, 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 forward-looking statements.

International Stem Cell Corporation
Dr. Simon Craw, Executive Vice President Business Development
Phone: 760-940-6383
Email: ir@intlstemcell.com
or
Investor Relations:
MZ Group
Mark McPartland
Phone: 212-301-7130
Email: markmcp@mzgroup.us
Web: www.mz-ir.com

International Stem Cell Corporation Announces Marketing Plans for its wholly owned subsidiary Lifeline Skin Care

CARLSBAD, CA June 12, 2012, International Stem Cell Corporation (OTCBB: ISCO) www.internationalstemcell.com has announced new sales and marketing initiatives for its Lifeline Skin Care products (www.lifelineskincare.com).  These efforts are designed to enable Lifeline to robustly, strategically and profitably grow the business.

Consumer Advertising

During June and July, new integrated advertising campaigns will be launched in three marketing channels—online, in newspapers and magazines, and through direct mail.  The campaigns will feature Lifeline’s innovative stem cell technology and proof of the brand’s potential:  younger looking skin.  Although the ads will eventually be national in reach, the first few months will be devoted to optimizing the creative approach, targeting, frequency, timing, positioning, offer and ROI.

Key Opinion Leader and Peer Group Influencer

Elizabeth K. Hale, MD., one of the nation's top dermatologists, is now endorsing Lifeline Skin Care to both consumer and trade audiences.  Dr. Hale is an Associate Clinical Professor of Dermatology at New York University, a private practitioner and a guest of the Doctor Oz show, the Today Show and Good Morning America.  During the week of June 4 she met with beauty editors for Prevention, Health, Town and Country, Allure, FoxNews.com and InStyle, to present Lifeline Skin Care and its unique technology.  The endorsement of a leading dermatologist should not only enhance the credibility of the brand but increase its visibility.

Strategic Partners

Email campaigns through strategic partners have been very successful at marketing Lifeline products.  To expand that effort, several new key opinion leaders have now agreed to endorse Lifeline Skin Care to their social networks, including Mrs. Jeri Thompson, a conservative spokesperson, radio and TV guest and advocate for non-embryonic stem cell research; and authors, experts and media personalities in the areas of women's health, yoga, cosmetic dentistry, and retirement planning.  Many of these partners plan to market Lifeline through their social network (email marketing, blogs, Facebook, etc.) as well as through personal and radio appearances.  Most of these campaigns will launch during the third quarter.

Professional Channels

During the week of June 12, Lifeline is launching two campaigns directed to 27,000 cosmetic dermatologists and day spas. These campaigns are focused on providing information to skin care professionals, including dermatologists and plastic surgeons, to understand and embrace the significance and value of stem cell extracts for skin rejuvenation.  

Donna Queen, newly appointed President and CEO of Lifeline Skin Care said, “There is an enormous opportunity for us in skincare and we’re now prepared to commit the people, energy and resources.  We intend to take the leadership role and intend to make Lifeline own the stem cell skincare category.  Effective immediately, we are accelerating and expanding our marketing and sales efforts to increase awareness and drive sales.

“Increasing awareness of Lifeline’s unique technology will enable us to stand apart and ahead in the anti-aging category. Stem cell skin care is still in a nascent phase, it’s time for us to seize the opportunity,” continued Ms. Queen.

About International Stem Cell Corporation

International Stem Cell Corporation is focused on the therapeutic applications of human parthenogenetic stem cells (hpSCs) and the development and commercialization of cell-based research and cosmetic products. ISCO's core technology, parthenogenesis, results in the creation of pluripotent human stem cells from unfertilized oocytes (eggs). hpSCs avoid ethical issues associated with the use or destruction of viable human embryos. ISCO scientists have created the first parthenogenic, homozygous stem cell line that can be a source of therapeutic cells for hundreds of millions of individuals of differing genders, ages and racial background with minimal immune rejection after transplantation. hpSCs offer the potential to create the first true stem cell bank, UniStemCell™. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary Lifeline Cell Technology (www.lifelinecelltech.com), and stem cell-based skin care products through its subsidiary Lifeline Skin Care (www.lifelineskincare.com). More information is available at www.internationalstemcell.com or follow us on Twitter @intlstemcell.

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Forward-looking Statements

Statements pertaining to anticipated developments, the potential benefits of sales and marketing initiatives, and other opportunities for the company and its subsidiaries, 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, competitive conditions and developments, the need and ability to obtain future capital, application of capital resources among competing uses, 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 forward-looking statements.

Contacts:

International Stem Cell Corporation

Dr. Simon Craw, Executive Vice President Business Development

Phone: 760-940-6383

Email: ir@intlstemcell.com

Investor Relations:

MZ Group

Mark McPartland

Phone: 212-301-7130

Email: markmcp@mzgroup.us

Web: www.mz-ir.com

International Stem Cell Corp Announces First Quarter 2012 Financial Results and Business Highlights

International Stem Cell Corporation (OTCBB: ISCO) (www.internationalstemcell.com) today announced financial results for the three months ended March 31, 2012.
Three Months ended March 31, 2012
Consolidated net revenues for the three months ended March 31, 2012 were $1.08 million compared to $1.52 million in the corresponding period a year ago. The year-over-year decrease in revenues is due to fewer sales generated from the Lifeline Skin Care (LSC) direct sales channel, partially offset by higher Lifeline Cell Technology (LCT) sales generated from larger distributors. LSC and LCT accounted for 51% and 49% of total revenue in the three months ended March 31, 2012 compared to 75% and 25%, respectively, in the comparable period a year ago.
For the three months ended March 31, 2012, development expenses were $3.80 million, representing a decrease of approximately 5% compared to the corresponding period in 2011. The decrease primarily reflects lower general and administrative expenses resulting from decreased stock-based compensation expense and lower laboratory-related expenses. The decrease was partially offset by higher cost of sales ratio resulting from increased sales concentration of lower margin products, and higher marketing and selling expense related to LSC. The Company continued to invest in its sales and marketing infrastructure, including significant enhancements to the e-commerce platforms, increased advertising and strengthening the sales and customer service organization.
Cash and cash equivalents at March 31, 2012 were $6.01 million compared to $1.34 million at December 31, 2011, reflecting an increase of $4.67 million resulting from two financing transactions including the issuance of shares of Series G preferred stock for $5.00 million and issuance of shares of common stock for a total of $2.08 million in the first quarter of 2012.
Q1 2012 Business Highlights:
The Company continued to focus its research and development efforts on the creation of additional parthenogenetic stem cell lines for therapeutic use and on the advancement of the disease area research programs, particularly pre-clinical in vivo safety and efficacy studies in Parkinson's disease and new methods for high-throughput cell culture and stem cell differentiation.
ISCO's wholly-owned subsidiary Lifeline Skin Care drove sales by expanding acquisition of both retail and trade customers, increasing the average order value and enhancing customer loyalty and retention. New retail customers were attracted by an increased social media presence and national exposure on TV shows such as ABC's "The Talk" and the use of risk-free introductory offers and free sample promotions. In addition, LSC continued to increase the number of strategic marketing partnerships. Although LSC revenue for the quarter was lower than the same period in 2011, the sales were generated from more diversified sources with much greater growth potential and reduced reliance on individual third parties.
Lifeline Cell Technology, ISCO's wholly-owned subsidiary specialized in cells and media research products, grew revenue across all three sales channels including domestic, international and OEM, showing a 39% increase over the same quarter of 2011.
The overall financial position of the company was significantly improved. ISCO increased its liquidity by securing a total $7.03 million of capital through equity financing transactions in the first quarter of 2012.
Dr. Andrey Semechkin, ISCO's CEO and Co-Chairman, commented, "The first quarter of this year has been a challenging one for ISCO. However, with the significant improvement of our balance sheet position resulting from the closing of the financings, coupled with the addition of Dr. Berglund as a new independent director to our Board of Directors, I believe that we have strengthened our foundation on which we can increase our competitiveness. "
About International Stem Cell Corporation
International Stem Cell Corporation is focused on the therapeutic applications of human parthenogenetic stem cells (hpSCs) and the development and commercialization of cell-based research and cosmetic products. ISCO's core technology, parthenogenesis, results in the creation of pluripotent human stem cells from unfertilized oocytes (eggs). hpSCs avoid ethical issues associated with the use or destruction of viable human embryos. ISCO scientists have created the first parthenogenic, homozygous stem cell line that can be a source of therapeutic cells for hundreds of millions of individuals of differing genders, ages and racial background with minimal immune rejection after transplantation. hpSCs offer the potential to create the first true stem cell bank, UniStemCell™. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary Lifeline Cell Technology (www.lifelinecelltech.com), and stem cell-based skin care products through its subsidiary Lifeline Skin Care (www.lifelineskincare.com). More information is available 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
Safe harbor statement
Statements pertaining to anticipated developments, potential sales growth, new products and distribution channels and other opportunities for the company and its subsidiaries, 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 and the management of collaborations, regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, 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 forward-looking statements.

International Stem Cell Corporation and Subsidiaries (A Development Stage Company) Condensed Consolidated Balance Sheets (in thousands, except share data)
			March 31, 2012					December 31, 2011
			(Unaudited)
Assets
Cash and cash equivalents			$	6,013				$	1,337
Accounts receivable				257					140
Inventory, net				1,228					1,268
Prepaid expenses and other current assets				297					274
Total current assets				7,795					3,019
Property and equipment, net				1,356					1,420
Intangible assets, net				1,419					1,282
Deposits and other assets				16					16
Total assets			$	10,586				$	5,737
Liabilities, Redeemable Preferred Stock and Stockholders' Equity
Accounts payable			$	719				$	777
Accrued liabilities				813					752
Deferred revenue				112					189
Related party payable				64					108
Advances				250					250
Warrants to purchase common stock				-					38
Total current liabilities				1,958					2,114
Convertible Redeemable Series G Preferred stock, $0.001 par value 5,000,000 shares and 0 were authorized, issued and outstanding at March 31, 2012 and December 31, 2011, respectively, liquidation preferences of $5,018 and $0 at March 31, 2012 and December 31, 2011, respectively				4,959					-
Commitments and contingencies
Stockholders' Equity
Series D Preferred stock, $0.001 par value 50 shares authorized, 43 issued and outstanding at March 31, 2012 and December 31, 2011				-					-
Series A Preferred stock, $0.001 par value 5,000,000 shares authorized, 0 and 500,000 issued and outstanding at March 31, 2012 and December 31, 2011, respectively, liquidation preferences of $0 and $615 at March 31, 2012 and December 31, 2011, respectively				0					1
Series B Preferred stock, $0.001 par value 5,000,000 shares authorized, 300,000 issued and outstanding at March 31, 2012 and December 31, 2011, liquidation preferences of $372 and $367 at March 31, 2012 and December 31, 2011, respectively				0					0
Series C Preferred stock, $0.001 par value 3,000,000 shares authorized, 2,000,000 issued and outstanding at March 31, 2012 and December 31, 2011, liquidation preferences of $2,420 and $2,387 at March 31, 2012 and December 31, 2011, respectively				2					2
Common stock, $0.001 par value 200,000,000 shares authorized, 87,036,315 and 80,036,315 issued and outstanding at March 31, 2012 and December 31, 2011, respectively				87					80
Additional paid-in capital				68,169					63,995
Deficit accumulated during the development stage				(64,589	)				(60,455	)
Total stockholders' equity				3,669					3,623
Total liabilities, redeemable preferred stock and stockholders' equity			$	10,586				$	5,737

International Stem Cell Corporation and Subsidiaries (A Development Stage Company) Condensed Consolidated Statements of Operations (in thousands, except per share data) (Unaudited)
				Three Months Ended March 31,										Inception (August 17, 2001) through March 31, 2012
				2012					2011
Revenues
Product sales				$	1,077				$	1,515				$	8,708
Royalties and license					-					-					135
Total revenue				$	1,077				$	1,515				$	8,843
Development expenses
Cost of sales					324					429					3,658
Research and development					937					1,004					19,231
Marketing					496					318					4,370
General and administrative					2,039					2,233					33,723
Total development expenses					3,796					3,984					60,982
Loss from development activities					(2,719	)				(2,469	)				(52,139	)
Other income (expense)
Settlement with related company					-					-					(93	)
Miscellaneous income (expense)					1					1					(179	)
Dividend income					-					-					94
Interest expense					-					-					(2,225	)
Sublease income					3					2					312
Change in market value of warrants					38					871					(1,357	)
Total other income (expense), net					42					874					(3,448	)
Loss before income taxes					(2,677	)				(1,595	)				(55,587	)
Provision for income taxes					-					-					7
Net loss				$	(2,677	)			$	(1,595	)			$	(55,594	)
Deemed dividend on preferred stock					(1,375	)				-					(1,375	)
Dividend on preferred stock					(82	)				(106	)				(8,050	)
Net loss applicable to common stockholders				$	(4,134	)			$	(1,701	)			$	(65,019	)
Net loss per common share-basic and diluted				$	(0.05	)			$	(0.02	)			$	n/a
Weighted average shares-basic and diluted					82,485					75,326					n/a

International Stem Cell Corporation
Dr. Andrey Semechkin, Chief Executive Officer
760-940-6383
ir@intlstemcell.com
or
Linh Nguyen, Chief Financial Officer
760-940-6383
lnguyen@intlstemcell.com
or
Investor Relations:
MZ Group
Mark McPartland
Senior Vice President
212-301-7130
markmcp@mzgroup.us
www.mz-ir.com

May 16, 2012