PALO ALTO, Calif., Jun 25, 2008 (BUSINESS WIRE) -- StemCells, Inc. (NASDAQ:STEM) announced today that it has filed
with the U.S. Securities and Exchange Commission (SEC) a universal
shelf registration statement which, when declared effective, will
permit the Company to issue up to $100 million worth of registered
debt and equity securities. Under this customary type of shelf
registration, once effective, the Company will have the flexibility to
issue registered securities, from time to time, in one or more
separate offerings or other transactions with the size, price and
terms to be determined at the time of issuance.

This new shelf registration statement is intended to replace the
Company's current shelf registration statement, which was filed in
October 2005 and would have expired in December 2008. The expiring
shelf registration statement permits the issuance of up to $100
million of registered shares of common stock, and currently,
approximately $59 million worth of common stock remains available
under this shelf. After the replacement shelf registration statement
is declared effective by the SEC, StemCells intends to deregister any
remaining shares under the expiring shelf.

Registered securities issued using the universal shelf may be used
for future acquisitions of assets, programs or businesses, to raise
additional capital to fund the Company's working capital and other
corporate needs and for other corporate purposes.

About StemCells, Inc.

StemCells, Inc. is a clinical-stage biotechnology company focused
on the discovery, development and commercialization of cell-based
therapeutics to treat diseases of the central nervous system and
liver. The Company's product development programs seek to repair or
repopulate CNS and liver tissue that has been damaged or lost as a
result of disease or injury. StemCells has pioneered the discovery and
development of HuCNS-SC(R) cells, its highly purified, expandable
population of human neural stem cells. StemCells has completed
enrollment and dosing of a six patient Phase I clinical trial of its
proprietary HuCNS-SC product candidate as a treatment for neuronal
ceroid lipofuscinosis (NCL) and expects the trial to be completed in
early 2009. NCL, which is often referred to as Batten disease, is a
rare and fatal neurodegenerative disease that affects infants and
young children. StemCells owns or has exclusive rights to more than 50
issued or allowed U.S. patents and more than 150 granted or allowed
non-U.S. patents. Further information about the Company is available
on its web site at: www.stemcellsinc.com.

Apart from statements of historical fact, the text of this press
release constitutes forward-looking statements regarding, among other
things, the future business operations of StemCells, Inc. (the
"Company") and its ability to conduct clinical trials as well as its
research and product development efforts. These forward-looking
statements speak only as of the date of this news release. StemCells
does not undertake to update any of these forward-looking statements
to reflect events or circumstances that occur after the date hereof.
Such statements reflect management's current views and are based on
certain assumptions that may or may not ultimately prove valid. The
Company's actual results may vary materially from those contemplated
in such forward-looking statements due to risks and uncertainties to
which the Company is subject, including uncertainty as to whether the
FDA or other applicable regulatory agencies will permit the Company to
continue clinical testing in NCL or in future clinical trials of
proposed therapies for other diseases or conditions despite the novel
and unproven nature of the Company's technologies; uncertainties
regarding the Company's ability to obtain the increased capital
resources needed to continue its current research and development
operations and to conduct the research, preclinical development and
clinical trials necessary for regulatory approvals; uncertainty
regarding the validity and enforceability of the Company's patents;
uncertainty as to whether HuCNS-SC and any products that may be
generated in the future in the Company's cell-based programs will
prove safe and clinically effective and not cause tumors or other
adverse side effects; uncertainties regarding the Company's
manufacturing capabilities given its increasing pre-clinical and
clinical commitments; uncertainties as to whether the Company will
achieve revenues from product sales or become profitable; and other
factors that are described under the heading "Risk Factors" in Item 1A
of Part II of the Company's Annual Report on Form 10-K.

SOURCE: StemCells, Inc.

StemCells, Inc.
Rodney Young, 650-475-3100 ext. 105
Chief Financial Officer
irpr@stemcellsinc.com

Copyright Business Wire 2008