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Neuralstem Sues StemCells, Inc. Over New Patent
Date:5/7/2008

ROCKVILLE, Md., May 7 /PRNewswire-FirstCall/ -- Stem cell company Neuralstem, Inc. (Amex: CUR) is filing suit today against StemCells, Inc. stating, among other things, that StemCells intentionally withheld crucial information highly material to the patentability of StemCells' "new" patent (US Pat No. 7,361,505) and that this was done with the intent to deceive the United States Patent Office in order to get the '505 patent allowed. As a result of these actions, Neuralstem is asking for a declaratory judgment that the patent is unenforceable. The suit will be filed in the United States District Court for the District of Maryland Southern Division.

(Logo: http://www.newscom.com/cgi-bin/prnh/20061221/DCTH007LOGO )

"While we believe that it is clear that we are not infringing this patent, and we have not yet been directly accused by StemCells, Inc. of infringing this patent, the threatening statements in their press release of April 23rd leave the misleading impression that we would require a license from them as a result of the issuance of this patent. Nothing could be further from the truth," said Neuralstem President & CEO Richard Garr. "And, in addition to finding that the patent is unenforceable against us, or anyone else for that matter, as a result of their actions, we are asking that the Court also declare that we are not infringing the patent and that the patent is also invalid."

"We are confident that their intentional withholding of highly material information and their intent to deceive the Patent Office, will result in this patent being unenforceable," concluded Garr.

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