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German Court Decision May Strengthen International Stem Cell Corporation's Position in European Market

CARLSBAD, CA -- (Marketwire) -- 12/07/12 -- International Stem Cell Corporation (OTCQB: ISCO) (www.internationalstemcell.com), a biotechnology company focused on the development of therapeutic products using parthenogenetic stem cells, heralds the recent decision by the German Federal Court of Justice, in the Greenpeace vs Brüstle patent case, which may allow ISCO to take a leading position in the European market.

This important ruling strengthens ISCO's position that parthenogenetic technology may be an acceptable method of producing banks of human pluripotent stem cell (hpSC) lines and derivatives for the commercial therapeutic markets in Europe. Under the ruling, patent restrictions will remain on other stem cell technologies, including embryonic stem cells, that require the destruction of human embryos. The ruling is especially timely in light of ISCO's recent announcement of the creation of new clinical grade human parthenogenetic stem cell lines in the United States.

Leading stem cell biologist Professor Albrecht Müller, of the Center for Experimental Molecular Medicine, University of Würzburg, Germany, comments, "Being able to patent cells and cell products is key to building a successful stem cell based biotechnology industry in Europe. We have already shown that hpSCs have tremendous potential to treat neurological diseases, and this new ruling makes hpSC and their derivatives significantly more attractive for the European market."

Dr. Andrey Semechkin, CEO and Co-Chairman of ISCO, continues, "This ruling may provide ISCO with a distinct advantage in being able to receive patent protection in the European Union. However, because Europe's highest court, the European Court of Justice, may re-evaluate earlier guidelines based on this resolution, there may be further changes. Nevertheless, it is clear that this decision indicates that European courts are focusing on fertilization as a factor when considering the patentability of stem cell derived products."

About International Stem Cell Corporation

International Stem Cell Corporation (ISCO) 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) hence avoiding ethical issues associated with the use or destruction of viable human embryos. ISCO scientists have created the first parthenogenetic, 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.

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Safe harbor statement

Statements pertaining to anticipated developments, scientific program and clinical development goals and plans, 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" or "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.

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