Medistem Inc. (PINKSHEETS: MEDS) announced today publication of a peer reviewed paper describing the scientific rationale and preliminary results of three patients with multiple sclerosis treated with their own fat derived stem cells.

"In addition to our endometrial regenerative cell (ERC) universal donor stem cell technology, for which an IND has been filed, Medistem has been committed to developing a pipeline of therapeutic products, including in the area of immune modulation," said Thomas Ichim, CEO of Medistem. "Given our previous observations and IP filings that a stem cell-rich component of adipose tissue, called the Stromal Vascular Fraction, can concurrently immune modulate, while inducing regenerative activities, we are pleased to see the clinical translation of this approach into multiple sclerosis patients."

Multiple sclerosis affects approximately 400,000 Americans and is characterized by immunological attack on the myelin sheath that surrounds the core of the nerve fibers and facilitates the transmission of nerve impulses in the nervous system. Currently, use of stem cells for this disease involves extraction of bone marrow and suppression of the patient's immune system. The therapy described in the publication circumvents the need for immune suppression and uses a simple liposuction procedure that is currently performed in thousands of plastic surgery clinics worldwide.

"Our collaborator in this publication, Dr. Robert Harman, CEO of Vet-Stem (www.vet-stem), has treated over 3,500 horses and 1,500 dogs with fat derived stem cells for inflammatory conditions such as osteoarthritis immune-mediated polyarthritis. The current work is an excellent example of veterinary findings being translated into human medicine," stated Dr. Boris Minev, faculty at the University of California San Diego, who was senior author of the paper.

The article, titled "Non-expanded adipose stromal vascular fraction cell therapy for multiple sclerosis," appeared today in the Journal of Translational Medicine , and was a collaboration between scientists and clinicians from Medistem; the University of Western Ontario; Hospital CIMA, San Jose, Costa Rica; Indiana University; Cell Medicine Institutes; University of California, San Diego; and University of Utah.

About Medistem Inc.

Medistem Inc. is a biotechnology company founded to develop and commercialize technologies related to adult stem cell extraction, manipulation, and use for treating inflammatory and degenerative diseases. The company's lead product, the endometrial regenerative cell (ERC), is a "universal donor" stem cell derived from the menstrual blood that possesses the ability to differentiate into nine tissue types, produce large quantities of growth factors, and a large proliferative capacity. A peer reviewed publication describing this novel cell type may be found at translational-medicine/content/5/1/57. The company is currently focusing on use of endometrial regenerative cells for treatment of critical limb ischemia, an advanced form of peripheral artery disease that causes approximately 160,000 amputations per year.

Cautionary Statement

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of our securities. This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information.

Factors which may cause actual results to differ from our forward-looking statements are discussed in our Form 10-K for the year ended December 31, 2007 as filed with the Securities and Exchange Commission.

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Medistem Inc.

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