StemCell Therapy

ALLENDALE, N.J., Jan. 12, 2012 /PRNewswire/ -- NeoStem's cell
therapy manufacturing division, Progenitor Cell Therapy
("PCT"), a NeoStem, Inc. company (NYSE Amex: NBS) ("NeoStem" or
the "Company"), announced today an agreement whereby PCT will
provide contract manufacturing and regulatory services related
to the development of Islet Sciences – PTM, which will be an
injectable suspension of microencapsulated insulin-producing,
pancreatic islet cells which are harvested from designated
pathogen free pigs. As part of this arrangement, PCT will
perform microencapsulation for parsing beta pancreatic islets
for xenotransplantation using piglet pancreata. Islet Sciences,
Inc. ("Islet") is a biotechnology company engaged in the
research, development and commercialization of patented
technologies in the field of transplantation therapy for
patients with diabetes and is a wholly-owned subsidiary of One
E-Commerce Corporation (OTCBB: ONCE.OB^[1] -
News^[2]). 

A 2010 study by the CDC found that approximately 25.8 million
Americans, more than 8% of the population, were affected by
diabetes. 5% of this number, approximately 1.3 million, have
type 1 diabetes. Type 1 diabetes is estimated to cost the US
$14.4 billion total annually.

"Given the robust market opportunity and the potential for cell
therapy to alter the disease paradigm, NeoStem has agreed to
this novel arrangement whereby PCT will subsidize manufacturing
margin related to current services for Islet Sciences – PTM
product in exchange for royalties on future sales, exclusive
manufacturing rights for both clinical trial and commercial
manufacturing and an equity stake in Islet's parent. We
recognize that PCT's track record of developing cell therapies
cost efficiently for cell therapy companies makes this a truly
compelling opportunity in the industry," said John Steel, CEO of Islet Sciences.

"Our team looks forward to applying its process and assay
expertise, in partnership with the scientific expertise of Dr.
Jonathan Lakey, scientific
advisor to Islet, and his team, towards the development of this
novel and creative cellular therapeutic for the treatment of
type 1 diabetes," said Robert A.
Preti, PhD, President of PCT. "We are honored that
Islet Sciences has enlisted PCT to provide manufacturing and
development support as it advances this important product
through clinical development."  

Dr. Robin L. Smith, Chairman and
CEO of NeoStem, added, "We are excited to begin using our
manufacturing currency at PCT to support important technologies
with promise by providing manufacturing and regulatory support
at a reduced profit margin in exchange for participation in
future royalties, equity as well as a commitment for clinical
trial and commercial manufacturing exclusivity."

About Type 1 Diabetes

According to the American Diabetes Association, type 1
diabetes, previously called insulin-dependent diabetes mellitus
(IDDM) or juvenile diabetes, is an autoimmune disease
characterized by insulin deficiency resulting from destruction
of beta-cells in the pancreas, ultimately resulting in the
body's inability to convert consumed sugar and starches into
energy. This form of diabetes usually affects children and
young adults, but it can occur at any age. Although insulin
therapy and other treatments can be used to manage the
condition, the condition is currently incurable.  

About NeoStem, Inc.

NeoStem, Inc. ("NeoStem") is a leader in the development and
manufacture of cell therapies. NeoStem has a strategic
combination of revenues, including that which is derived from
the contract manufacturing services performed by Progenitor
Cell Therapy, LLC, a NeoStem company. That manufacturing base
is one of the few cGMP facilities available for contracting in
the burgeoning cell therapy industry, and it is the combination
of PCT's core expertise in manufacturing and NeoStem's
extensive research capabilities that positions the company as a
leader in cell therapy development. Amorcyte, Inc., also a
NeoStem company, is developing a cell therapy for the treatment
of cardiovascular disease. Amorcyte's lead compound, AMR-001,
represents NeoStem's most clinically advanced therapeutic
and  has commenced enrollment in a Phase 2 trial for the
preservation of heart function after a heart attack.
 Amorcyte expects to begin a Phase 1 clinical trial in
2012 for AMR-001 for the treatment of patients with congestive
heart failure. Athelos Corporation, also a NeoStem company, is
developing a T-cell therapy for a range of autoimmune
conditions with its partner Becton-Dickinson.  NeoStem's
pre-clinical assets include its VSEL™ Technology platform for
regenerative medicine, which NeoStem believes to be an
endogenous, pluripotent, non-embryonic stem cell that has the
potential to change the paradigm of cell therapy as we know it
today.

For more information on NeoStem, please visit http://www.neostem.com^[3].

About Islet Sciences, Inc.

Islet Sciences is a development-stage biotechnology company
with patented technologies focused on transplantation therapy
for people with insulin-dependent diabetes. Islet's
transplantation technology includes methods for the culturing,
isolation, maturation, and immunoprotection
(microencapsulation) of islet cells. Islet's mission includes
the introduction of commercial products with applications to
cell-based replacement therapy in the healthcare marketplace.

Forward-Looking Statements

This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements for NeoStem, PCT and Islet
Sciences reflect their respective managements' current
expectations, as of the date of this press release, and involve
certain risks and uncertainties. Forward looking statements
include statements herein with respect to the companies'
successful execution of their  respective business
strategies, including with respect to the successful
development of cell therapeutics, including with respect to
Islet Sciences – PTM, as well as the future of the cell
therapeutics industry. Actual results could differ materially
from those anticipated in these forward- looking statements as
a result of various factors. Factors that could cause future
results to materially differ from the recent results or those
projected in forward-looking statements for NeoStem and PCT
include the "Risk Factors" described in NeoStem's prospectus
supplement filed with the Securities and Exchange Commission
("SEC") on September 30, 2011 and
for Islet include the risks described in the One E-Commerce
Corporation Form 8-K filed with the Securities and Exchange
Commission on December 30, 2011.
The companies' further development is highly dependent on
future medical and research developments and market acceptance,
which is outside their control.

References

1. ^{^} ONCE.OB
   (finance.yahoo.com)
2. ^{^} News
   (finance.yahoo.com)
3. ^{^} http://www.neostem.com
   (us.lrd.yahoo.com)
4. ^{^} gogawa@troutgroup.com
   (finance.yahoo.com)
5. ^{^} rsmith@neostem.com
   (finance.yahoo.com)