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NeoStem Raises Additional Funds from Principals of Suzhou Erye Pharmaceuticals Company Ltd. and U.S. Institutional and Private Investors, Bringing the Total Recent Financings to Over $15 Million; Funds Will Support Expansion Activities in the United State
Date:7/1/2009

ote of the Company's shareholders and the rules of the NYSE Amex, the warrants will become exercisable for a period of five years and each share of Series D Convertible Redeemable Preferred Sock will automatically convert into ten shares of Common Stock.

Dr. Robin Smith, Chairman and CEO of NeoStem, stated, "We are very pleased to receive this additional investment from a group of institutional and private onshore investors who recognize the many recent achievements of NeoStem under our multi-faceted business plan. Our growing stem cell technology base and our expanding relationships with key business partners in the U.S. and China open the way to new markets, distribution channels and production capabilities in the world's two largest economies. By successfully leveraging both the medical and commercial potential of emerging adult stem cell therapies, NeoStem is establishing an international leadership position in this rapidly developing field." She added, "We are also excited that the principals of Suzhou Erye have made a second investment in our future, which we believe solidifies their commitment to our post-merger endeavors."

The securities sold were sold without registration under the Securities Act of 1933, as amended (the "Act") pursuant to Regulation S or Regulation D, each promulgated under the Act and may not be resold in the United States or to U.S. persons unless registered under the Act or pursuant to an exemption from registration under the Act. Hedging transactions involving such securities may not be conducted unless in compliance with the Act.

About NeoStem, Inc.

NeoStem is managing a network of adult stem cell collection centers in major metropolitan areas in the United States, enabling people to donate and store their own (autologous) stem cells when they are young and healthy for their personal use in times of future medical need. The Company also has entered into
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