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NeoStem Receives Notice of Noncompliance from NYSE Alternext US
Date:2/13/2009

NEW YORK, Feb. 13 /PRNewswire-FirstCall/ -- On February 10, 2009, NeoStem, Inc. (NYSE Alternext US: NBS) (the "Company") received notice from the NYSE Alternext US (the "Alternext") indicating that the Company is not in compliance with Section 704 of the Alternext Company Guide (the "Guide"), which requires a listed company to hold meetings of its shareholders annually.

On November 3, 2008, the Company had announced that it planned to hold a shareholder meeting to obtain approval of (i) a Share Exchange Agreement to acquire through a series of contractual arrangements control over Shandong New Medicine Research Institute of Integrated Traditional and Western Medicine Limited Liability Company, a China limited liability company and (ii) an Agreement and Plan of Merger with China Biopharmaceuticals Holdings, Inc., a Delaware corporation ("CBH"), China Biopharmaceuticals Corp., a British Virgin Islands corporation and wholly-owned subsidiary of CBH, and CBH Acquisition LLC, a Delaware limited liability company and wholly-owned subsidiary of NeoStem to acquire a 51% ownership interest in Suzhou Erye Pharmaceuticals Company Ltd., a Sino-foreign joint venture with limited liability organized under the laws of the People's Republic of China. It had been the Company's understanding that this series of events constituted sufficiently unusual circumstances to permit a single combined meeting be held in 2009 and that this would be in compliance with Section 704.

The Company has been afforded the opportunity to submit a plan of compliance to the Alternext by March 10, 2009, that demonstrates it will bring it back into compliance by August 11, 2009 and the Company will submit such a plan. If the Company does not submit a plan or if the plan is not accepted by the Alternext, the Company may be subject to delisting procedures as set forth in Section 1010 and Part 12 of the Guide.

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