Representative Brian Bilbray Meets with International Stem Cell Executives to Discuss Research Funding

International Stem Cell Corporation (OTCBB: ISCO) today announced that Representative Brian Bilbray recently met with Company executives, including Chairman Kenneth Aldrich, President and Chief Executive Officer Andrey Semechkin, and Senior Vice President Kurt May, to discuss key federal government issues relating to stem cell research. Rep. Bilbray represents California's 50th congressional district, which includes portions of San Diego's North County.

Following the meeting, Rep. Bilbray stated, "I have tremendous respect for the innovative healthcare companies in my district, such as International Stem Cell, that are at the forefront of developing important new treatments and therapies. I'm committed to helping remove unnecessary regulations and barriers that may inhibit the research of new life science technologies, and I greatly appreciate the efforts of ISCO's management team to clarify many of the issues surrounding their work."

Said Dr. Semechkin, "We are very pleased to have the opportunity to meet with Congressman Bilbray and explain the importance of our parthenogenesis technology and how it differs from human embryonic stem cell development, particularly from an ethical standpoint. We look forward to continued discussions with Congressman Bilbray and his colleagues regarding the Dickey-Wicker Amendment. We believe that with increased understanding of our technology the National Institutes of Health (NIH) will support parthenogenesis research and development."

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, and cell-based skin care products through its subsidiary Lifeline Skin Care. More information is available at www.internationalstemcell.com.

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Statements pertaining to anticipated developments, 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

Kenneth C. Aldrich, Chairman

760-940-6383

kaldrich@intlstemcell.com

or

Lippert/Heilshorn & Associates

Don Markley

310-691-7100

dmarkley@lhai.com

International Stem cell Corporation Chairman Discusses Recent Stem Cell Research Funding Decision

This is Ken Aldrich and I am Chairman of International Stem Cell Corporation and I thought I should comment briefly on the recent decision of the federal district court of the District of Columbia concerning stem cell research.

What the court did was to announce that it was prohibiting the use of federal funding by the NIH for embryonic stem cell research which is a major blow if the decision is upheld for the stem cell industry. It’s interesting because it actually does not affect International Stem Cell Corporation in any direct negative manner.

The truth of the matter is we have not been able to use federal funding since the very beginning of the company because of a particular provision in the Dickey Wicker amendment that specifically calls out parthenogenic stem cells as a form of embryo, in spite of the fact that they genuinely are not an embryo in fact cannot ever become any living human being and don’t involve the destruction of anything that could become human being. Nevertheless, we have always been caught up in the Dickey Wicker amendment. So we haven’t been hurt by this decision, if anything it has perhaps leveled the playing field for us a bit with the embryonic stem cell group.

But the bottom line is we don’t really think it is good for the country and we hope there will be a change. But we do hope is that perhaps this will open the political debate and as people begin to look at the broader spectrum and realize that parthenogenic stem cell, which is our stock and trade, do not involve the destruction of any embryos, it may be that the specific language of the Dickey Wicker amendment can ultimately be removed and we would then become eligible along with everyone else for federal funding through the NIH and other government programs. If so, it would be a wonderful result. In the meantime, it is a difficult time for everyone in the industry. We’ll keep you informed. Thank you