<SEC-DOCUMENT>0001299933-11-002854.txt : 20110922
<SEC-HEADER>0001299933-11-002854.hdr.sgml : 20110922
<ACCEPTANCE-DATETIME>20110922165143
ACCESSION NUMBER:		0001299933-11-002854
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20110922
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20110922
DATE AS OF CHANGE:		20110922

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			STEMCELLS INC
		CENTRAL INDEX KEY:			0000883975
		STANDARD INDUSTRIAL CLASSIFICATION:	BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
		IRS NUMBER:				943078125
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19871
		FILM NUMBER:		111103425

	BUSINESS ADDRESS:	
		STREET 1:		3155 PORTER DRIVE
		STREET 2:		.
		CITY:			PALO ALTO
		STATE:			CA
		ZIP:			94304
		BUSINESS PHONE:		6504753100

	MAIL ADDRESS:	
		STREET 1:		3155 PORTER DRIVE
		STREET 2:		.
		CITY:			PALO ALTO
		STATE:			CA
		ZIP:			94304

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CYTOTHERAPEUTICS INC/DE
		DATE OF NAME CHANGE:	19930328
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>htm_43027.htm
<DESCRIPTION>LIVE FILING
<TEXT>
<!-- CoverPageHeader start -->
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
<HTML>
<HEAD>
<TITLE> StemCells, Inc. (Form: 8-K) </TITLE>
</HEAD>
<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">
<!-- Comment1 -->
<A NAME="DOCUMENT_TOP">&nbsp;</A>
<P>
<!-- CoverPageHeader end --><!-- CoverPageTitle START -->
<A NAME="DOCUMENT_TOP">&nbsp;</A>
<HR NOSHADE>
<P>
<P ALIGN="CENTER">
<FONT SIZE="4">
		UNITED STATES<BR>
	SECURITIES AND EXCHANGE COMMISSION
</FONT>
<BR>
<FONT SIZE="2">
	WASHINGTON, D.C. 20549
</FONT>
<P ALIGN="CENTER">
<FONT SIZE="5">
	FORM 8-K
</FONT>
<FONT SIZE="2">

</FONT>
</P>
<P ALIGN="CENTER">
<FONT SIZE="3">
	CURRENT REPORT
</FONT>
</P>
<P ALIGN="CENTER">
<FONT SIZE="2">
	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
</FONT>
</P>
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
<TD WIDTH="51%">
	&nbsp;
</TD>
<TD WIDTH="5%">
	&nbsp;
</TD>
<TD WIDTH="44%">
	&nbsp;
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	Date of Report (Date of Earliest Event Reported):
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	September 22, 2011
</FONT>
</TD>
</TR>
</TABLE>
<BR>
</CENTER>
<!-- CoverPageTitle END --><!-- CoverPageRegistrant START -->
<P ALIGN="CENTER"><!-- -->
<FONT SIZE="6">
	StemCells, Inc.
</FONT>
<FONT SIZE="2">
<BR>__________________________________________<BR>
	(Exact name of registrant as specified in its charter)
</FONT>
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
<TD WIDTH="33%">
	&nbsp;
</TD>
<TD WIDTH="34%">
	&nbsp;
</TD>
<TD WIDTH="33%">
	&nbsp;
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	Delaware
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	000-19871
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	94-3078125
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
_____________________<BR>
	(State or other jurisdiction
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
_____________<BR>
	(Commission
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
______________<BR>
	(I.R.S. Employer
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	of incorporation)
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	File Number)
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	Identification No.)
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	7707 Gateway Blvd, Suite 140, Newark, California
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	94560
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
_________________________________<BR>
	(Address of principal executive offices)
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
___________<BR>
	(Zip Code)
</FONT>
</TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%">

<TR VALIGN="BOTTOM">
<TD WIDTH="51%">
	&nbsp;
</TD>
<TD WIDTH="5%">
	&nbsp;
</TD>
<TD WIDTH="44%">
	&nbsp;
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	Registrant&#146;s telephone number, including area code:
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	510.456.4000
</FONT>
</TD>
</TR>
</TABLE>
</CENTER>
<P ALIGN="CENTER">
<FONT SIZE="2">
	Not Applicable
<BR>______________________________________________<BR>
	Former name or former address, if changed since last report
</FONT>
<P ALIGN="CENTER">
<FONT SIZE="2">
	&nbsp;
</FONT>
<!-- CoverPageRegistrant END --><P><FONT SIZE="2">
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:</FONT>
</P>
<P><FONT SIZE="2">
[&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
</P></FONT><!-- PageBreak START -->
<P>
<HR NOSHADE>
<DIV ALIGN="LEFT" STYLE="PAGE-BREAK-BEFORE:ALWAYS">
<A HREF="#DOCUMENT_TOP">
<U>
<B>
<FONT SIZE="2">Top of the Form</FONT>
</B>
</U>
</A>
</DIV>
<!-- PageBreak END --><!-- Item START -->
<P ALIGN="LEFT">
<FONT SIZE="2">
<B>
	Item 8.01 Other Events.
</B>
</FONT>
</P>
<P ALIGN="LEFT">
<FONT SIZE="2">
On September 22, 2011, StemCells, Inc. (the "Company") announced the successful dosing of the first patient in the Phase I/II clinical study of its HuCNS-SC cells (purified human neural stem cells) in chronic spinal cord injury.  The transplantation occured at Balgrist University Hospital in Switzerland.<br><br>The Company's press release announcing this clinical milestone is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated hereby by reference.
</FONT>
</P>
<!-- Item END -->
<BR><BR><BR><BR><!-- Item START -->
<P ALIGN="LEFT">
<FONT SIZE="2">
<B>
	Item 9.01 Financial Statements and Exhibits.
</B>
</FONT>
</P>
<P ALIGN="LEFT">
<FONT SIZE="2">
(d)  Exhibits<br><br>Exhibit 99.1 Press Release of StemCells, Inc., dated September 22, 2011
</FONT>
</P>
<!-- Item END -->
<BR><BR><BR><BR><P ALIGN="LEFT" STYLE="FONT-SIZE: 10PT"></P><!-- PageBreak START -->
<P>
<HR NOSHADE>
<DIV ALIGN="LEFT" STYLE="PAGE-BREAK-BEFORE:ALWAYS">
<A HREF="#DOCUMENT_TOP">
<U>
<B>
<FONT SIZE="2">Top of the Form</FONT>
</B>
</U>
</A>
</DIV>
<!-- PageBreak END --><!-- SignatureHeader START -->
<P ALIGN="CENTER">
<FONT SIZE="2">
<B>
	SIGNATURES
</B>
</FONT>
</P>
<P ALIGN="LEFT">
<FONT SIZE="2">
	Pursuant to the requirements of the Securities Exchange Act of 1934, the
	registrant has duly caused this report to be signed on its behalf by the
	undersigned hereunto duly authorized.
</FONT>
</P>
<!-- SignatureHeader END --><!-- Signature START -->
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
<TD WIDTH="19%">
	&nbsp;
</TD>
<TD WIDTH="34%">
	&nbsp;
</TD>
<TD WIDTH="3%">
	&nbsp;
</TD>
<TD WIDTH="1%">
	&nbsp;
</TD>
<TD WIDTH="43%">
	&nbsp;
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD COLSPAN="3" VALIGN="TOP" ALIGN="LEFT">
<FONT SIZE="2">
	StemCells, Inc.
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
<I>
	September 22, 2011
</I>
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	By:
</I>
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	/s/ Kenneth Stratton
</I>
<BR>
</FONT>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<HR SIZE="1" NOSHADE>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	Name: Kenneth Stratton
</I>
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	Title: General Counsel
</I>
</FONT>
</TD>
</TR>
</TABLE>
</CENTER>
<!-- Signature END --><!-- PageBreak START -->
<P>
<HR NOSHADE>
<DIV ALIGN="LEFT" STYLE="PAGE-BREAK-BEFORE:ALWAYS">
<A HREF="#DOCUMENT_TOP">
<U>
<B>
<FONT SIZE="2">Top of the Form</FONT>
</B>
</U>
</A>
</DIV>
<!-- PageBreak END --><P ALIGN="CENTER">
<FONT SIZE="2">
	Exhibit&nbsp;Index
</FONT>
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="60%">
<TR VALIGN="BOTTOM">
<TD WIDTH="8%">
	&nbsp;
</TD>
<TD WIDTH="15%">
	&nbsp;
</TD>
<TD WIDTH="77%">
	&nbsp;
</TD>
</TR>

<BR>
<TR VALIGN="BOTTOM">
<TD NOWRAP ALIGN="LEFT">
<FONT SIZE="1">
<B>
	Exhibit No.
</B>
</FONT>
</TD>
<TD>
<FONT SIZE="1">
	&nbsp;
</FONT>
</TD>
<TD NOWRAP ALIGN="LEFT">
<FONT SIZE="1">
<B>
	Description
</B>
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD NOWRAP ALIGN="CENTER">
<HR SIZE="1" NOSHADE>
</TD>
<TD>
<FONT SIZE="1">
	&nbsp;
</FONT>
</TD>
<TD NOWRAP ALIGN="CENTER">
<HR ALIGN="LEFT" SIZE="1" WIDTH="88%" NOSHADE>
</TD>
</TR>





<TR VALIGN="BOTTOM">
<TD VALIGN="TOP" WIDTH="8%" nowrap>
<FONT SIZE="2">
<DIV ALIGN="LEFT">
	99.1
</DIV>
</FONT>
</TD>
<TD WIDTH="15%">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<FONT SIZE="2">
Press Release of StemCells, Inc. dated September 22, 2011
</FONT>
</TD>
</TR></TABLE></CENTER><!-- HTMLFooter START -->
</BODY>
</HTML>
<!-- HTMLFooter END -->
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
<HTML>
<HEAD>
<TITLE> EX-99.1 </TITLE>
</HEAD>
<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">

<BODY style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><FONT style="font-size: 20pt">NEWS RELEASE</FONT>



<P align="left" style="font-size: 20pt"><FONT style="font-size: 12pt"><B><I>FOR IMMEDIATE RELEASE</I></B>
</FONT>
<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD align="left" valign="top"><FONT style="font-size: 10pt"><B>CONTACT:</B></FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-size: 10pt">Rodney Young<BR>
Chief Financial Officer<BR>
(510)&nbsp;456-4128</FONT></DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><FONT style="font-size: 12pt"><B>STEMCELLS, INC. ANNOUNCES WORLD&#146;S FIRST NEURAL STEM CELL TRANSPLANT IN SPINAL CORD INJURY<BR>
PATIENT</B></FONT>



<P align="left" style="font-size: 12pt; text-indent: 4%"><FONT style="font-size: 10pt"><B>NEWARK, Calif., September&nbsp;22, 2011 </B>&#150; StemCells, Inc. (NASDAQ: STEM) announced today that
the first patient in the Company&#146;s breakthrough Phase I/II clinical trial in chronic spinal cord
injury was successfully transplanted with the Company&#146;s proprietary HuCNS-SC<sup>&#174;</sup> adult
neural stem cells. The stem cells were administered yesterday at Balgrist University Hospital,
University of Zurich, a world leading medical center for spinal cord injury and rehabilitation.
The transplant surgery was performed by a team of surgeons led by Dr.&nbsp;Raphael Guzman, a visiting
staff neurosurgeon also on faculty at Department of Neurosurgery, Stanford University, and Dr.&nbsp;K.
Min, an orthopedic surgeon at Balgrist University Hospital.
</FONT>

<P align="left" style="font-size: 10pt; text-indent: 4%">&#147;I am pleased to be a part of this innovative clinical trial designed to help us assess the
safety and potential efficacy of HuCNS-SC stem cells for spinal cord injury,&#148; explains Dr.&nbsp;Armin
Curt, Principal Investigator. &#147;The preclinical data underlying this trial provided compelling
rationale to conduct a study of this nature in spinal cord-injured patients.&#148; StemCells, Inc. has
published numerous preclinical studies demonstrating the therapeutic potential of the Company&#146;s
human neural stem cells for the treatment of acute and chronic spinal cord injury. These studies
were conducted in close collaboration with Drs.&nbsp;Aileen Anderson and Brian Cummings of the
University of California, Irvine.


<P align="left" style="font-size: 10pt; text-indent: 4%">The first patient transplanted in the trial, a 23-year-old German man, suffered a spinal cord
injury in an automobile accident in April of this year. He sustained a complete loss of sensation
and mobility from the waist down. When asked about his decision to enroll in this leading-edge
study, he said &#147;This terrible injury crossed out almost all my life plans, and has led me to an
unexpected path. Participating in this clinical trial not only gives me a sense of hope, but it
also helps move this important research forward.&#148;


<P align="left" style="font-size: 10pt; text-indent: 4%">&#147;With this first patient enrolled and dosed, we remain on track to meet our goal of treating
the first cohort of patients by the end of this year,&#148; said Stephen Huhn MD, FACS, FAAP, Vice
President and Head of the CNS Program at StemCells, Inc. &#147;While the trial&#146;s first cohort will
consist of patients with the most severe, complete injury, the second and third cohorts will
progress to patients with less severe, incomplete injury. This unique trial design will allow us to
evaluate the potential of our HuCNS-SC cells as a treatment for a broad spectrum of spinal cord
injury patients. Even a small improvement could have a marked impact on quality of life for the
millions of people who suffer from this debilitating condition.&#148;


<P align="left" style="font-size: 10pt"><B>About the Clinical Trial</B>


<P align="left" style="font-size: 10pt; text-indent: 4%">The Phase I/II clinical trial of StemCells, Inc.&#146;s HuCNS-SC purified human adult neural stem
cells is designed to assess both safety and preliminary efficacy. Twelve patients with thoracic
(chest-level) neurological injuries at the T2-T11 level are planned for enrollment. The first three
patients will all have injuries classified as ASIA A, in which there is no apparent neurological
function below the injury level, the most severe level identified by the American Spinal Injury
Association (ASIA)&nbsp;Impairment Scale. The second and third cohorts will be patients classified as
ASIA B and ASIA C, those with less severe injury, in which there is some preservation of sensory or
motor function. In addition to assessing safety, the trial will assess preliminary efficacy based
on defined clinical endpoints, such as changes in sensation, motor and bowel/bladder function.


<P align="left" style="font-size: 10pt; text-indent: 4%">All patients will receive HuCNS-SC cells through direct transplantation into the spinal cord
and will be temporarily immunosuppressed. Patients will be evaluated regularly in the
post-transplant period in order to monitor and assess the safety of the HuCNS-SC cells, the surgery
and the immunosuppression, as well as to measure any recovery of neurological function below the
injury site. The Company intends to follow the effects of this therapy long-term, and a separate
4-year observational study will be initiated at the conclusion of this trial.


<P align="left" style="font-size: 10pt; text-indent: 4%">For information on patient enrollment, interested parties may contact the study nurse either
by phone at &#043;41 44 386 39 01, or by email at stemcells.pz@balgrist.ch.


<P align="left" style="font-size: 10pt; text-indent: 4%">Additional information about the Company&#146;s spinal cord injury program can be found on the
StemCells, Inc. website at http://www.stemcellsinc.com/Therapeutic-Programs/Clinical-Trials.htm and
at http://www.stemcellsinc.com/Therapeutic-Programs/Spinal-Cord-Injury.htm, including video
interviews with Company executives and independent collaborators.


<P align="left" style="font-size: 10pt"><B>About Chronic Spinal Cord Injury</B>


<P align="left" style="font-size: 10pt; text-indent: 4%">According to a study reported by the Christopher and Dana Reeve Foundation, nearly 1.3&nbsp;million
people in the United States are estimated to be living with chronic spinal cord injury. The
chronic phase of spinal cord injury is considered to begin when inflammation has stabilized and
recovery has reached a plateau, which is typically several months following injury. Currently,
there are no effective treatment options for patients with chronic spinal cord injury, and
treatment approaches have generally targeted the acute and sub-acute time points, which are within
hours or days of injury. Given the unmet need in chronic spinal cord injury, restoring some degree
of function for patients at time points beyond the acute phase could have a transformative impact
on the field. StemCells hopes to address a broad population of spinal cord-injured patients by
opening the window of opportunity for therapeutic intervention well after the acute injury and
targeting a wide range of injury levels and degrees of impairment.


<P align="left" style="font-size: 10pt"><B>About Balgrist University Hospital</B>


<P align="left" style="font-size: 10pt; text-indent: 4%">Balgrist University Hospital, University of Zurich is recognized worldwide as a highly
specialized center of excellence providing examination, treatment and rehabilitation opportunities
to patients with serious musculoskeletal conditions. The clinic owes its leading international
reputation to its unique combination of specialized medical services. The hospital&#146;s
carefully-balanced, interdisciplinary network brings together under one roof medical specialties
including orthopedics, paraplegiology, radiology, anesthesiology, rheumatology, and physical
medicine. More information about Balgrist University Hospital is available at
<U>www.balgrist.ch</U>.


<P align="left" style="font-size: 10pt"><B>About StemCells, Inc.</B>


<P align="left" style="font-size: 10pt; text-indent: 4%">StemCells, Inc. is engaged in the research, development, and commercialization of cell-based
therapeutics and tools for use in stem cell-based research and drug discovery. The Company&#146;s lead
therapeutic product candidate, HuCNS-SC<sup>&#174;</sup> cells (purified human neural stem cells), is
currently in development as a potential treatment for a broad range of central nervous system
disorders. Clinical trials are currently underway in spinal cord injury and in
Pelizaeus-Merzbacher disease (PMD), a fatal myelination disorder in children. In addition, the
Company plans to file an IND by year-end 2011 to initiate a clinical trial of HuCNS-SC cells in the
dry form of age-related macular degeneration, and is also pursuing preclinical studies of its
HuCNS-SC cells in Alzheimer&#146;s disease and stroke. StemCells also markets stem cell research
products including media and reagents, under the SC Proven<sup>&#174; </sup>brand, and is developing
stem cell-based assay platforms for use in pharmaceutical research, drug discovery and drug
development. Further information about StemCells is available at
<U>http://www.stemcellsinc.com</FONT><FONT style="font-size: 12pt"></U>. </FONT><FONT style="font-size: 10pt">
</FONT>

<P align="left" style="font-size: 10pt; text-indent: 4%"><I>Apart from statements of historical fact, the text of this press release constitutes
forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the
Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created therein.
These statements include, but are not limited to, statements regarding the prospect of retaining
continued authorization to conduct a clinical trial in Switzerland in chronic spinal cord injury;
the prospect and timing associated with enrolling the first cohort of patients with complete injury
in 2011, and then transitioning to patients with incomplete injuries thereafter; the potential of
the Company&#146;s HuCNS-SC product candidate to restore lost motor function; the potential of the
Company&#146;s HuCNS-SC cells to treat spinal cord injury and other central nervous system disorders;
and the future business operations of the Company, including its ability to conduct clinical trials
as well as its other research and product development efforts. These forward-looking statements
speak only as of the date of this news release. The Company does not undertake to update any of
these forward-looking statements to reflect events or circumstances that occur after the date
hereof. Such statements reflect management&#146;s current views and are based on certain assumptions
that may or may not ultimately prove valid. The Company&#146;s actual results may vary materially from
those contemplated in such forward-looking statements due to risks and uncertainties to which the
Company is subject, including the fact that additional trials will be required to demonstrate the
safety and efficacy of the Company&#146;s HuCNS-SC cells for the treatment of any disease or disorder;
uncertainty as to whether the FDA or other applicable regulatory agencies will permit the Company
to continue clinical testing in PMD, spinal cord injury or in future clinical trials of proposed
therapies for other diseases or conditions given the novel and unproven nature of the Company&#146;s
technologies; uncertainties regarding the ability of preclinical research, including research in
animal models, to accurately predict success or failure in clinical trials; uncertainties regarding
the Company&#146;s ability to recruit the patients required to conduct this clinical trial or to obtain
meaningful results; uncertainties regarding the Company&#146;s ability to obtain the increased capital
resources needed to continue its current and planned research and development operations;
uncertainty as to whether HuCNS-SC and any products that may be generated in the future in the
Company&#146;s cell-based programs will prove safe and clinically effective and not cause tumors or
other adverse side effects; uncertainties regarding the Company&#146;s ability to commercialize a
therapeutic product and its ability to successfully compete with other products on the market; and
other factors that are described under the heading &#147;Risk Factors&#148; in the Company&#146;s Annual Report on
Form&nbsp;10-K for the year ended December&nbsp;31, 2010, and in its subsequent reports on </I><I>Form 10-Q</I><I> and Form
8-K.</I>


<P align="center" style="font-size: 10pt"># # # #




<P align="center" style="font-size: 10pt; display: none">




<!-- v.121908 -->
</BODY>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
