Lifeline Cell Technology Products Being Used As Models for Drug Testing

DiscoveryBioMed, Inc. Engaged in Multiple Projects on Behalf of Lifeline Cell Technology, Inc. to Test the Function and Utility of Multiple Primary Human Cell Products

DiscoveryBioMed, Inc. has agreed to move forward with a "service" contract for primary human cell bioassay testing for its first commercial client, Lifeline Cell Technology, Inc., a wholly owned subsidiary of International Stem Cell Corporation (OTCBB: ISCO).

"This is a mutually beneficial relationship between two companies that believe in the development, use, and sale of human cells as the most important and biologically relevant reagents for experimental systems," said Dr. Erik Schwiebert, CEO of DBM, Inc. "Lifeline Cell Tech is also our first commercial client and these contracts provide a wonderful opportunity for our company to generate knowledge about human cell physiology as well as early revenue."

"We agree that human cells are critically important in-vitro models to assure drug safety and conduct basic research," said ISCO President and Lifeline Cell Technology CEO Jeffrey Janus. "DiscoveryBioMed's proven expertise in assay development combined with Lifeline's expertise in producing optimized human adult and stem cell products will certainly result in powerful research tools."

In addition to these introductory interactions, DBM and Lifeline Cell Tech are developing a mutual SBIR grant proposal on the use of multiple human cell cultures derived from different tissues as an important in vitro platform for testing pollutant, candidate therapeutics and existing drugs for toxicity against cells in a variety of human tissues.

ABOUT DISCOVERYBIOMED, INC.

DiscoveryBioMed, Inc. is a life sciences and biotechnology company that engages in R&D and services work in cell engineering and production and drug discovery. The company is located within Innovation Depot in Birmingham. Using physiologically relevant cell culture models preferably derived from normal and diseased adult human cells and tissues, it focuses on finding therapeutic compounds for a variety of human diseases. It also applies this custom human cell-based approach to its "fee-for-service" support to researchers in allied areas and currently serves clients both locally in Alabama as well as in 8 other states in the US currently. For more information, visit the DBM website at www.discoverybiomed.com.

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 minimize immune rejection after transplantation into hundreds of 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.

For more news and information on International Stem Cell Corporation, please visit www.IRGnews.com/coi/ISCO where you can find the CEO's video, a fact sheet on the company, investor presentations, and more.

FORWARD-LOOKING STATEMENTS

Statements pertaining to anticipated future financial and/or operating results, future growth in research, technology, clinical development and potential joint venture and other 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, 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 these forward-looking statements.

DiscoveryBioMed, Inc.
Erik Schwiebert, Ph.D., CEO
erik@discoverybiomed.com
or
International Stem Cell Corporation
Jeffrey Janus, President
jjanus@intlstemcell.com
760-940-6383
or
The Investor Relations Group
212-825-3210
Investor Relations:
Adam S. Holdsworth
aholdsworth@investorrelationsgroup.com
or
Media Relations:
Laura Colontrelle
lcolontrelle@investorrelationsgroup.com

International Stem Cell Corporation Issues Letter to Shareholders

Letter Describes Changing Political Climate, Competitive Advantages of Parthenogenesis, Creation of Human Corneal Tissue, New Partnerships, Clinical Trials, and Other Developments

International Stem Cell Corporation (OTCBB: ISCO) (www.internationalstemcell.com), the first company to perfect a method of creating human stem cells from unfertilized eggs, has issued a letter to its shareholders. To view the shareholder letter in its entirety, please follow the link to the company's website:http://www.internationalstemcell.com/shareholderletter.htm.

The Letter covers a variety of subjects, including:

• Competitive advantages of human parthenogenetic stem cells over other kinds of stem cells
• Completion of December 2008 financing; receipt of first $2 million of anticipated private equity of up to $5 million
• First company to grow human corneal tissue in a Petri dish, suitable for toxicity testing and possibly suitable for corneal implants
• Commencement of pre-clinical animal trials using parthenogenetic stem cells to treat retinal disease
• Partnership with Absorption Systems to commercialize human stem cell-derived corneal tissue for drug testing
• Description of collaborative partnership goals toward the creation of an unlimited supply of cells that is not reliant on donor tissue and that does not risk rejection by patient immune systems

"The recent developments detailed in our shareholder letter illustrate that the company remains on track to achieve its goals," commented Kenneth C. Aldrich, Chairman and CEO. "We are excited for our shareholders to read this update, thank them for their continued enthusiasm and support, and look forward to providing updates in what we think will be an exciting 2009."

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 minimize immune rejection after transplantation into hundreds of 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 anticipated future financial and/or operating results, future growth in research, technology, clinical development and potential joint venture and other 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, 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 these forward-looking statements.

International Stem Cell Corporation
Kenneth C. Aldrich, Chairman, CEO
kaldrich@intlstemcell.com
760-940-6383
or
William Adams, Chief Financial Officer
wadams@intlstemcell.com
760-940-6383
or
The Investor Relations Group
212-825-3210
Investor Relations:
Adam S. Holdsworth
aholdsworth@investorrelationsgroup.com
or
Media Relations:
Laura Colontrelle
lcolontrelle@investorrelationsgroup.com

International Stem Cell Corporation Featured In The Economist

Article Details ISCO's Solutions To Ethical And Immune Rejection Issues

International Stem Cell Corporation (OTCBB: ISCO) (www.internationalstemcell.com), the first company to perfect a method of creating human "parthenogenetic" stem cells from unfertilized eggs, has been featured in the January 31, 2009, edition of The Economist, the authoritative weekly publication focusing on international politics and business news and opinion.

The article, titled "Embryonic Stem Cells: Can I Serve You Now?," details how ISCO's unique parthenogenetic approach helps resolve two of the conundrums that have long shadowed stem cell research: ethical issues and immune rejection difficulties. "ISCO has found a way of producing embryonic-like stem cells from unfertilized eggs. The egg is chemically stimulated to create a group of cells that form a non-viable (and unfertilized) 'embryo' . . . something that could not be implanted into a woman's womb and produce a child. Nonetheless, the cells it contains have the same characteristics as stem cells. Besides the ethical advantages this procedure has, it could also have medical ones. Because lines of stem cells created in this way have only one parent, they are immunologically simpler than normal embryonic cells—in other words they have a smaller variety of the proteins that trigger immune rejection."

"We are very pleased to see coverage of this kind in a publication as venerable and prestigious as The Economist," says International Stem Cell Corporation Chairman and CEO Kenneth Aldrich. "For a variety of reasons, it is clear that there is renewed interest in the stem cell research arena, and we are grateful to The Economist for allowing us to communicate our story."

The complete article can be accessed by visiting: http://www.economist.com/science/displayStory.cfm?story_id=13014104&source=hptextfeature

About The Economist

The Economist offers timely reporting, concise commentary and comprehensive analysis of global news in its weekly magazine and online at economist.com. With objective authority, clarity and wit, The Economist presents the world's political, business, scientific, technological and cultural affairs and the connections between them. Edited in London since 1843, The Economist has a worldwide print circulation of more than 1.3 million and three million monthly visitors to www.Economist.com.

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 minimize immune rejection after transplantation into hundreds of 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 anticipated future financial and/or operating results, future growth in research, technology, clinical development and potential joint venture and other 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, 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 these forward-looking statements.

Key Words: Stem Cells, Biotechnology, Parthenogenesis

International Stem Cell Corporation
Kenneth C. Aldrich, Chairman, CEO
kaldrich@intlstemcell.com
760-940-6383
or
Jeffrey Janus, President
jjanus@intlstemcell.com
760-940-6383
or
The Investor Relations Group
212-825-3210
Investor Relations:
Adam S. Holdsworth
aholdsworth@investorrelationsgroup.com
or
Media Relations:
Laura Colontrelle
lcolontrelle@investorrelationsgroup.com

International Stem Cell Corporation Begins Pre-Clinical Trials on Human Corneal Epithelial Cells

Trials Designed to Improve Laser Eye Surgery Outcomes

International Stem Cell Corporation (OTCBB:ISCO), the first company to perfect a method of creating human "parthenogenetic" stem cells from unfertilized eggs, is planning pre-clinical trials aimed at applying its laboratory-grown human corneal epithelial cells to improve photorefractive keratectomy (PRK), a form of corrective laser eye surgery.

These trials are the first step toward Food and Drug Administration (FDA) clinical trials to test the efficacy of using ISCO cells to improve healing after corneal surgery, and are part of the company's efforts to increase the clinical utility of its discoveries in culturing corneal cells and tissues.

This work is being done in collaboration with Dr. Paul H. Chen, M.D., who has developed the cell transfer technology. Dr. Chen is an eye surgeon at North County Laser Eye Associates, and he is on staff at Scripps Memorial La Jolla and Scripps Encinitas Hospitals.

"This collaboration is an excellent opportunity for ISCO to use its cell culture and manufacturing expertise to create therapeutic human cells that can enter the market relatively quickly and improve patient's quality of life," said Jeffrey Janus, ISCO's president. "We are fortunate to be working with Dr. Chen on this exciting project."

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 minimize immune rejection after transplantation into hundreds of 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 anticipated future financial and/or operating results, future growth in research, technology, clinical development and potential joint venture and other 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, 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 these forward-looking statements.

Key Words: Stem Cells, Biotechnology, Parthenogenesis International Stem Cell Corporation

Kenneth C. Aldrich, Chairman, CEO
kaldrich@intlstemcell.com
760-940-6383
or
Jeffrey Janus, President
jjanus@intlstemcell.com
760-940-6383
or
The Investor Relations Group
212-825-3210
Investor Relations:
Adam S. Holdsworth
aholdsworth@investorrelationsgroup.com
or
Media Relations:
Laura Colontrelle
lcolontrelle@investorrelationsgroup.com

International Stem Cell Receives Second $1M Tranche Under $5 Million Financing

International Stem Cell Corporation (OTCBB:ISCO) has received the second $1 million tranche of an anticipated private equity financing of up to $5 million to be funded over the next several months. The total amount of the financing is intended to allow the Company to move forward with its therapeutic research, including its pre-clinical trials. The money will also help retire its existing secured debt and be allocated to marketing to increase revenues in the Company's subsidiary, Lifeline Cell Technology, which makes and sells specialty cells and growth media. ISCO is the creator and developer of a new class of stem cells that remove two of the greatest barriers to the therapeutic use of stem cells: 1) immune rejection and 2) the ethical issues that surround the use of embryonic stem cells. ISCO makes its cells available to qualified researchers worldwide, and its technology, called "Parthenogenesis," results in the creation of cell lines that may allow cells from a single donor to be immune-matched to hundreds of millions of people thus reducing the dangers of immune rejection. 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. 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 linesStem 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. 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 minimize immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. These advancements offer the potential to create the first true " FORWARD-LOOKING STATEMENTS: Statements pertaining to anticipated future financial and/or operating results, future growth in research, technology, clinical development and potential joint venture and other 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, 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 these forward-looking statements. International Stem Cell Corporation Kenneth C. Aldrich, Chairman, CEO kaldrich@intlstemcell.com 760-940-6383 or William Adams, Chief Financial Officer wadams@intlstemcell.com 760-940-6383 or The Investor Relations Group 212-825-3210 Investor Relations: Adam S. Holdsworth aholdsworth@investorrelationsgroup.com or Media Relations: Laura Colontrelle lcolontrelle@investorrelationsgroup.com

International Stem Cell Research

ISCO has developed a process to derive stem cells similar to Embryonic Stem Cells without the need for fertilized embryos and with minimal exposure to non-human cells. These factors provide ISC a unique leadership role in the field of regenerative cell therapy.

International Stem Cell Begins Pre-Clinical Testing Of Its Parthenogenetic Stem Cells For Treatment Of Retinal Disease

OCEANSIDE, Calif., Jan 13, 2009 (BUSINESS WIRE) -- International Stem Cell Corporation (OTCBB: ISCO) has created layered human tissue from its unique parthenogenetic stem cells and transplanted this tissue into animals in pre-clinical trials to establish a potential new treatment for human retinal diseases, such as macular degeneration or retinitis pigmentosa.

"Intact layers of retinal progenitor cells have been shown to restore lost visual responses in several retinal degeneration rodent models," said Dr. Hans Keirstead, Co-Director of the Sue and Bill Gross Stem Cell Research Center at the University of California, Irvine. "Thus, we are developing intact retinal layers derived from International Stem Cell's human parthenogenetic stem cells which could become a sustainable, FDA-approved therapeutic supply for patients with retinal degenerative diseases."

ISCO's human parthenogenetic stem cells have the potential to treat human disease yet possess key medical and ethical advantages over other kinds of stem cell products. They can be matched to common immune types and thus reduce the chance of transplant rejection among large segments of the population. Because they are created from unfertilized human eggs, they do not require the destruction of human embryos.

"We are aggressively pushing forward safe treatments for human diseases using parthenogenetic stem cells," said Jeffrey Janus, President of International Stem Cell. "If we are successful in this work, our next step is to manufacture this layered human tissue for further tests, including human trials. This illustrates the strengths of combining scientific collaborations with outside researchers such as Dr. Keirstead with ISCO's science and cell manufacturing expertise."

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.

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 minimize immune rejection after transplantation into hundreds of 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.

FORWARD-LOOKING STATEMENTS:

Statements pertaining to anticipated future financial and/or operating results, future growth in research, technology, clinical development and potential joint venture and other 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, 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 these forward-looking statements.

Key Words: Stem Cells, Biotechnology, Parthenogenesis

SOURCE: International Stem Cell Corporation

International Stem Cell Corporation

Kenneth C. Aldrich, Chairman, CEO

kaldrich@intlstemcell.com

760-940-6383

or

William Adams, Chief Financial Officer

wadams@intlstemcell.com

760-940-6383

or

The Investor Relations Group

212-825-3210

Investor Relations:

Adam S. Holdsworth

or

Media Relations:

Laura Colontrelle

lcolontrelle@investorrelationsgroup.com