<SEC-DOCUMENT>0001299933-14-000865.txt : 20140529
<SEC-HEADER>0001299933-14-000865.hdr.sgml : 20140529
<ACCEPTANCE-DATETIME>20140529162124
ACCESSION NUMBER:		0001299933-14-000865
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20140529
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140529
DATE AS OF CHANGE:		20140529

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:		14876330

	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
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<TYPE>8-K
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<DESCRIPTION>LIVE FILING
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<TITLE> StemCells, Inc. (Form: 8-K) </TITLE>
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		UNITED STATES<BR>
	SECURITIES AND EXCHANGE COMMISSION
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	WASHINGTON, D.C. 20549
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	FORM 8-K
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	CURRENT REPORT
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	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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	Date of Report (Date of Earliest Event Reported):
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	May 29, 2014
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	StemCells, Inc.
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	(Exact name of registrant as specified in its charter)
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	Delaware
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	000-19871
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	94-3078125
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_____________________<BR>
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	of incorporation)
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	Identification No.)
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	7707 Gateway Blvd, Suite 140, Newark, California
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	94560
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_________________________________<BR>
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	510.456.4000
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	Not Applicable
<BR>______________________________________________<BR>
	Former name or former address, if changed since last report
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	&nbsp;
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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>
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[&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>
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	Item 7.01 Regulation FD Disclosure.
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On May 29, 2014, StemCells, Inc. (the "Company") issued a press release announcing the posting of a CEO letter to shareholders. The full text of this press release and CEO letter to shareholders is attached hereto as Exhibit 99.1.<br><br>The information set forth in Items 7.01 and 9.01 of this current report Form 8-K, including the attached exhibit, is being furnished to the SEC and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended ("Exchange Act"), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
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	Item 9.01 Financial Statements and Exhibits.
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(d) Exhibit<br><br>Exhibit 99.1 Press release dated May 29, 2014 announcing the posting of a CEO letter to shareholders.
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	SIGNATURES
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	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.
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	StemCells, Inc.
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	May 29, 2014
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	By:
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	/s/ Kenneth Stratton
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	Name: Kenneth Stratton
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	Title: General Counsel
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	Exhibit&nbsp;Index
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	99.1
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Press release dated May 29, 2014
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<P align="center" style="font-size: 10pt"><FONT style="font-size: 10pt"> </FONT><FONT style="font-size: 12pt"><B>Stem Cells Inc. Posts Letter to Shareholders</B></FONT>



<P align="left" style="font-size: 12pt"><FONT style="font-size: 10pt"><B>NEWARK, CA, May&nbsp;29, 2014 </B>(GLOBE NEWSWIRE) &#151; StemCells, Inc. (Nasdaq:STEM), a leading stem cell
company developing novel cell-based therapeutics for disorders of the central nervous system,
posted today the following Letter to Shareholders from its President and CEO, Martin McGlynn.
</FONT>

<P align="left" style="font-size: 10pt">Dear Fellow Shareholders,


<P align="left" style="font-size: 10pt">As I mentioned in my last letter to shareholders, the pace of development at StemCells, Inc. has
been accelerating quickly, so it is especially important to have regular updates to keep you
informed of the remarkable progress we are making to advance stem cell science and cell-based
medicine for intractable conditions of the central nervous system (the &#147;CNS&#148;). Over the past few
months, in making presentations at several prestigious healthcare conferences, the Company&#146;s
ongoing leadership position and recent clinical accomplishments have served as solid proof of the
tangible value that we are creating. We believe this lead will extend quickly over the next year or
two, as StemCells, begins reporting clinical data from its controlled Phase II studies in two
indications, one in the eye and the other in the spinal cord.


<P align="left" style="font-size: 10pt"><B>&#147;Much Ado About Nothing&#148; or &#147;Signs Of Things To Come&#148;?</B>


<P align="left" style="font-size: 10pt">We recently completed enrollment in our Phase I/II spinal cord injury trial, which represents the
world&#146;s first test of human neural stem cell transplantation in chronic injury. The interim data
from this trial includes evidence of return of function to the spinal cord below the site of the
injury. Due to the severity and location of the injuries in these cases, the types and degrees of
sensory function gain that we have reported were not expected by experts. The fact that four of the
eight patients dosed, to-date, have experienced return of sensation is, in and of itself, very
encouraging, but we believe the fact that the regained sensation extends to as many as six segments
below the level of injury is suggestive of a fundamental regenerative process occurring in the
spinal cord.


<P align="left" style="font-size: 10pt"><B>Why are we so excited about these findings and why should you be, too?</B>


<P align="left" style="font-size: 10pt">The spinal cord can be compared to a building made up of many floors (i.e., segments) that are
connected by elevators (i.e., conduits). Each floor, or segment, serves a specific purpose for
control of both sensation and motor function. The lowest &#147;floors,&#148; comprising the lumbar spine,
control sensory and motor function to the legs and lower extremities; the middle &#147;floors,&#148; or
thoracic spine (the target for our first study), includes twelve individual segments that
predominately serve sensation of the torso; above the thoracic, the cervical spine controls both
sensory and motor function of the upper extremities. Restoring function to the cord after injury
would connect the &#147;floors,&#148; or segments of the spinal cord, and run the &#147;elevators,&#148; which
represent the conduits composed of long nerve fibers through which signals are transmitted back and
forth from each floor to the top of the building &#151; including the &#147;penthouse&#148; (i.e., the brain).


<P align="left" style="font-size: 10pt">In our first study in spinal cord injury, we focused on the thoracic portion of the spine, the
segments of which are represented by the middle floors of the building, which predominantly serve
sensory function. Although spinal cord injury damages both the floors (segments)&nbsp;and the elevators
(conduits), return of spinal cord function in the thoracic cord is likely to first manifest as
recovery of sensation, the main purpose of the thoracic spine segments.


<P align="left" style="font-size: 10pt">We are very encouraged by the multi-segmental gains and what it may mean for patients for which
there is currently no other treatment option. Sensory function is a vital protective mechanism in
our bodies, because it warns us about potentially harmful exposures or contacts. For example, being
able to sense the temperature of the water in a shower or bath might prevent the spinal cord injury
patient from getting third-degree burns. Secondly, injuries to the thoracic region tend to be more
severe compared to injuries to the cervical region. Similar gains in function in the C3-C7 cervical
region could potentially restore movement to the upper extremities, such that an SCI patient might
be given use of the hands, arms and/or shoulders for the first time since the injury, and may
significantly impact quality of life. We were very encouraged to see gains in spinal cord function
following HuCNS-SC&#174; transplantation up to 24&nbsp;months post injury in some cases.


<P align="left" style="font-size: 10pt">StemCells plans to initiate a controlled Phase II clinical trial this Fall, involving as many as a
dozen clinical trial centers, to evaluate the efficacy of HuCNS-SC cells to restore movement,
particularly to the upper limbs. We expect to complete enrollment in this study about one year
later with final results following twelve months thereafter.


<P align="left" style="font-size: 10pt"><B>The &#147;Eyes&#148; Have It!</B>


<P align="left" style="font-size: 10pt">We have enrolled 13 of 16 patients in our Phase I/II dose-escalating trial in geographic atrophy of
age-related macular degeneration (GA-AMD), a devastating disease and the leading cause of blindness
in the elderly. AMD is caused, as the name suggests, by the degeneration of the central portion of
the retina, known as the macula. The &#147;dry&#148; form of the disease, for which there are no known cures,
represents approximately 90% of all forms of AMD.


<P align="left" style="font-size: 10pt">The goal of our Phase I/II trial is to test the safety, tolerability and preliminary efficacy of a
one-time transplant of our HuCNS-SC cells into the sub-retinal space in the back of the eye in
patients with dry AMD. This study is also serving to inform the design for the Phase II
proof-of-concept trial targeted to begin later this year. Ultimately, our goal is to impact the
relentless progression of the disease by slowing, stopping or perhaps even reversing the
degeneration of the macula in GA-AMD and, in so doing, preserve vision. We plan to report the first
interim results from the on-going Phase I/II trial at the Annual Meeting of The International
Society for Stem Cell Research (ISSCR)&nbsp;in Vancouver Canada, June&nbsp;19 to 21, 2014.


<P align="left" style="font-size: 10pt"><B>Rapidly Accelerating Clinical Studies Yielding Significant Growth in Clinical Data</B>


<P align="left" style="font-size: 10pt">An additional update on the Company&#146;s spinal cord injury trial will be provided at the Annual
Symposium of the National Neurotrauma Society to be held in San Francisco, June&nbsp;29-July 2. This
fall, the Company is planning to host a StemCells, Inc. R&D Day for investors in New York, during
which we plan to:


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    <TD width="1%" nowrap align="right"><FONT style="font-size: 9pt">&#149;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-size: 9pt"></FONT><FONT style="font-size: 10pt">Provide additional data from the Phase I/II GA-AMD and SCI trials;</FONT></TD>
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    <TD width="1%" nowrap align="right"><FONT style="font-size: 9pt">&#149;</FONT></TD>
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    <TD><FONT style="font-size: 9pt"></FONT><FONT style="font-size: 10pt">Provide clinical study design details for the planned Phase II controlled trials;</FONT></TD>
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    <TD width="1%" nowrap align="right"><FONT style="font-size: 9pt">&#149;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-size: 9pt"></FONT><FONT style="font-size: 10pt">Hear from Key Opinion Leaders (KOLs) in spinal cord injury and retinal
degeneration; and</FONT></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><FONT style="font-size: 9pt">&#149;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-size: 9pt"></FONT><FONT style="font-size: 10pt">Provide investors with a forum to have their questions addressed.</FONT></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>Targeting Major Medical Conditions in All Three Components of the CNS</B>


<P align="left" style="font-size: 10pt">We have embarked on a clinical development program that is unprecedented in terms of scope, cell
dose and diversity of indications. We began with small, single-center studies to demonstrate
safety, which have enabled the expansion of our clinical program into larger, multicenter,
controlled, randomized Phase II proof-of-concept studies with hard clinical endpoints. As a result
of this forward-looking strategy, our upcoming trials will provide significant insight into the
therapeutic potential of our human neural stem cells across not one, but a broad range of CNS
disorders. We believe that targeting more than one disorder of the CNS will maximize the potential
to show the therapeutic merit of our HuCNS-SC platform technology.


<P align="left" style="font-size: 10pt">The aggressive nature of our clinical translation agenda has required that we carefully consider
how best to use our resources. With the completion of our Phase I/II trials in two rare genetic
disorders &#151; Neuronal Ceroid Lipofuscinosis (NCL, also known as Batten&#146;s Disease) and Pelizaeus
Merzbacher&#146;s Disease (PMD) &#151; and subsequent publication of the results, the best strategy for both
of these research programs is to seek a partner to help carry forward our exciting findings into
further clinical translation and Phase II trials. While we are not abandoning NCL and PMD research
and development, our current strategy will focus our primary resources on more ubiquitous
indications with significant unmet medical need.


<P align="left" style="font-size: 10pt"><B>A Compelling Value Proposition</B>


<P align="left" style="font-size: 10pt">How do we value the potential of our programs? I share the belief that in today&#146;s volatile biotech
climate, a few unequivocal valuation drivers* comprise the best barometer:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>People &#151; StemCells has attracted a world-class team of professionals, with the experience
and expertise needed to drive success.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Alliances &#151; our clinical trials have attracted partnerships with world-leading researchers,
hospitals and institutions.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>IP &#151; StemCells holds a wealth of valid patents that protect our technology.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>R&D &#151; we are rapidly accruing clinical data that validates the findings of our preclinical
models. Two of our clinical programs addressing major medical conditions (SCI and GA-AMD) are
rapidly advancing towards controlled Phase II trials. Risk decreases with each regulatory
milestone reached.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financials &#151; StemCells has a sound balance sheet and a strong cash position &#151; $26.5mm as of
March&nbsp;31, 2014, and financial support from the California Institute of Regenerative Medicine.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Market Opportunity &#151; our diversified clinical program addresses multiple major medical
conditions affecting large populations, two of which (AMD and Alzheimer&#146;s), target aging
populations that are rapidly increasing around the world.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Once again, on behalf of our employees, as well as the millions of patients and families whose
hopes we hold dear, I want to thank you for your continuing support and faith in our ability to
prove our value, as we transform &#147;Groundbreaking Science&#148; into &#147;Breakthrough Medicine.&#148;


<P align="left" style="font-size: 10pt">Sincerely,


<P align="left" style="font-size: 10pt">Martin McGlynn
<BR>
President and Chief Executive Officer


<P align="left" style="font-size: 10pt">May&nbsp;29, 2014


<P align="left" style="font-size: 10pt"><FONT style="font-size: 7pt">*See Ranade, Vinay, <I>Early-Stage Valuation in the Biotechnology Industry</I>, The Walter H.
Shorenstein Asia-Pacific Research Center, Stanford University, February&nbsp;2008
(<U>http://iis-db.stanford.edu/pubs/22116/Ranade&#151;FINAL&#151;Feb&#151;2008.pdf)</U>
</FONT>

<P align="left" style="font-size: 7pt"><FONT style="font-size: 10pt">A copy of the shareholder letter may be found on the StemCells, Inc. website at:
</FONT>

<P align="left" style="font-size: 10pt"><U>http://www.stemcellsinc.com/About-Us/CEO-Corner.htm</U>


<P align="left" style="font-size: 10pt"><FONT style="font-size: 11pt"><B>About StemCells, Inc.</B>
</FONT>

<P align="left" style="font-size: 11pt"><FONT style="font-size: 10pt">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.&nbsp;In a Phase&nbsp;I clinical trial in Pelizaeus-Merzbacher disease (PMD), a fatal myelination
disorder in children, the Company has shown preliminary evidence of progressive and durable
donor-derived myelination in all four patients transplanted with HuCNS-SC cells.&nbsp;The Company is
conducting a Phase I/II clinical trial in chronic spinal cord injury in Switzerland, Canada and the
United States, and has reported positive interim data for the first eight patients.&nbsp;The Company is
also conducting a Phase I/II clinical trial in dry age-related macular degeneration (AMD)&nbsp;in the
United States. In addition, the Company is pursuing preclinical studies in Alzheimer&#146;s disease,
with support from the California Institute for Regenerative Medicine (CIRM).&nbsp;&nbsp;StemCells also
markets stem cell research products, including media and reagents, under the SC Proven<sup>&#174;</sup>
brand.&nbsp;Further information about StemCells is available at <U>http://www.stemcellsinc.com</U>.
</FONT>

<P align="left" style="font-size: 10pt"><FONT style="font-size: 8pt"><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.&nbsp;These statements include, but are not limited to, the prospect for screening and then
enrolling additional patients with incomplete spinal cord injury and dry AMD; the potential of the
Company&#146;s HuCNS-SC cells to treat spinal cord injury, dry AMD and other central nervous system
diseases and disorders; the timing and prospect of drawing additional funds from the California
Institute for Regenerative Medicine; the timing and prospect of initiating one or more controlled
Phase II efficacy studies; and the future business operations of the Company. 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 applicable regulatory agencies will permit
the Company to continue clinical testing in spinal cord injury or in future clinical trials of
proposed therapies for other diseases or conditions; uncertainties regarding the Company&#146;s ability
to recruit the patients required to conduct its clinical trials 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 cells 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 </I><I>Form 10-K</I><I> for the year
ended December&nbsp;31, 2013, and in its subsequent reports on </I><I>Form 10-Q</I><I> and </I><I>Form 8-K</I><I>.</I>
</FONT>

<P align="left" style="font-size: 8pt"><FONT style="font-size: 10pt"><B>CONTACT: </B>Greg Schiffman
</FONT>

<P align="left" style="font-size: 10pt; text-indent: 5%">StemCells, Inc.


<P align="left" style="font-size: 10pt; text-indent: 5%">Chief Financial Officer


<P align="left" style="font-size: 10pt; text-indent: 5%">(510)&nbsp;456-4128


<P align="left" style="font-size: 10pt; text-indent: 5%">Andrea Flynn


<P align="left" style="font-size: 10pt; text-indent: 5%">Russo Partners


<P align="left" style="font-size: 10pt; text-indent: 5%">(646)&nbsp;942-5631


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




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