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NeoStem Announces Warrant Exercise by Principal Shareholder
Date:3/18/2010

NEW YORK, March 18 /PRNewswire-Asia-FirstCall/ -- NeoStem, Inc. ( NBS) ("NeoStem" or the "Company"), an international biopharmaceutical company with operations in the U.S. and China, is pleased to announce the exercise of a warrant by a principal shareholder, RimAsia Capital Partners, LP ("RimAsia").

RimAsia has exercised its NeoStem warrant to purchase 1,000,000 shares, issued to RimAsia in a September 2008 private placement ("2008 Warrant"), at a price of $1.75 per share for gross proceeds to the Company of $1,750,000. RimAsia is currently subject to a lock-up agreement. The transaction was approved by the Company's board of directors and the Company's independent audit committee on March 11, 2010. On this date the Company's common stock closed at $1.42. Eric Wei is a member of the Company's board of directors and a managing partner of RimAsia.

The Company intends to put the proceeds from the exercise of the warrant towards the funding of the Company's various initiatives, including assisting in the funding of the relocation of the manufacturing facility of Suzhou Erye Pharmaceutical Co. Ltd. ("Erye"), the Company's 51% owned subsidiary.


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