<SEC-DOCUMENT>0001144204-12-038554.txt : 20120709
<SEC-HEADER>0001144204-12-038554.hdr.sgml : 20120709
<ACCEPTANCE-DATETIME>20120709074600
ACCESSION NUMBER:		0001144204-12-038554
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20120618
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20120709
DATE AS OF CHANGE:		20120709

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NeoStem, Inc.
		CENTRAL INDEX KEY:			0000320017
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090]
		IRS NUMBER:				222343568
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33650
		FILM NUMBER:		12951941

	BUSINESS ADDRESS:	
		STREET 1:		420 LEXINGTON AVENUE
		STREET 2:		SUITE 450
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10170
		BUSINESS PHONE:		212-584-4171

	MAIL ADDRESS:	
		STREET 1:		420 LEXINGTON AVENUE
		STREET 2:		SUITE 450
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10170

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PHASE III MEDICAL INC/DE
		DATE OF NAME CHANGE:	20030819

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CORNICHE GROUP INC /DE
		DATE OF NAME CHANGE:	19951117

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FIDELITY MEDICAL INC
		DATE OF NAME CHANGE:	19951025
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v318013_8k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event
reported):&nbsp;&nbsp;June 18, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NEOSTEM, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in
Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
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    <TD STYLE="width: 33%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Delaware</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(State or Other Jurisdiction</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">of Incorporation)</P></TD>
    <TD STYLE="width: 34%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">001-33650</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Commission</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">File Number)</P></TD>
    <TD STYLE="width: 33%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">22-2343568</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(IRS Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Identification No.)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>420 Lexington Avenue, Suite 450, New
York, New York&nbsp;10170</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of Principal Executive Offices)(Zip
Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>(212) 584-4180</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant's Telephone Number</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 (see General Instruction
A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 10pt Wingdings">&uml;</TD>
    <TD STYLE="width: 97%; font-size: 10pt">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 10pt Wingdings">x</TD>
    <TD STYLE="width: 97%; font-size: 10pt">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 10pt Wingdings">&uml;</TD>
    <TD STYLE="width: 97%; font-size: 10pt">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; font: 10pt Wingdings">&uml;</TD>
    <TD STYLE="width: 97%; font-size: 10pt">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1.01. Entry into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In its Current Report on Form 8-K dated
and filed with the Securities and Exchange Commission on June 18, 2012, NeoStem, Inc. (the &ldquo;<U>Company</U>&rdquo; or &ldquo;<U>NeoStem</U>&rdquo;)
announced the signing of the Equity Purchase Agreement dated as of June 18, 2012 (the &ldquo;<U>Equity Purchase Agreement</U>&rdquo;),
by and among the Company, the Company&rsquo;s wholly-owned subsidiary China Biopharmaceuticals Holdings, Inc. (&ldquo;<U>CBH</U>&rdquo;),
Fullbright Finance Limited, a limited liability company organized under the laws of the British Virgin Islands (&ldquo;<U>Fullbright</U>&rdquo;),
Suzhou Erye Economy &amp; Trading Co., Ltd., a limited liability company organized under the laws of the People&rsquo;s Republic
of China (&ldquo;<U>EET</U>&rdquo; and together with Fullbright, each a &ldquo;<U>Purchaser</U>&rdquo; and collectively, the &ldquo;<U>Purchasers</U>&rdquo;),
and Suzhou Erye Pharmaceutical Co., Ltd., a Sino-foreign equity joint venture with limited liability organized under the laws of
the People&rsquo;s Republic of China (&ldquo;<U>Erye</U>&rdquo;), providing for the sale by NeoStem and CBH to the Purchasers (the
&ldquo;<U>Erye Sale</U>&rdquo;) of NeoStem&rsquo;s entire 51% ownership interest in Erye (the &ldquo;<U>Erye Interest</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To update the disclosure appearing under
Item 1.01 of the June 18, 2012 Form 8-K, the Company today announced that it has received from the Purchasers the initial $1,228,000
down payment (10% of the total cash purchase price), which was due within 15 days of the execution of the Equity Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 5.02. Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(e) Compensatory Arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 5, 2012 (the &ldquo;<U>Grant Date</U>&rdquo;),
the Compensation Committee of the Company&rsquo;s Board of Directors granted Robin L. Smith, M.D., the Company&rsquo;s Chief Executive
Officer and Chairman of the Board, an option (the &ldquo;Option&rdquo;) to purchase 700,000 shares of NeoStem common stock at an
exercise price of $.52 per share (the closing price of a share of NeoStem common stock on the NYSE Mkt on the Grant Date), and
issued 150,000 shares (the &ldquo;Shares&rdquo;) to her pursuant and subject to the terms of the Company&rsquo;s 2009 Equity Compensation
Plan. The Option and Shares were fully vested on the Grant Date and the Option has a term of ten years despite termination of employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 8.01. Other Events.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 9, 2012, NeoStem issued a press
release that included a letter to the shareholders of the Company. A copy of the press release is attached hereto as Exhibit 99.1
and is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Effective as of June 25, 2012, NeoStem
appointed Martin Schmieg, age 50, as the Company&rsquo;s Vice President, Corporate Development. Mr. Schmieg, who will serve
the Company in a full-time capacity, brings to the Company over 25 years of experience in business development for health
care product and medical technology companies ranging from early-stage privately funded technology ventures to market driven
public companies. While originally trained in accounting and finance, Mr. Schmieg&rsquo;s career has also included hands-on
management of research and development, regulatory, manufacturing, marketing, sales, customer service, and business
development functions. Over the past two years, Mr. Schmieg has worked as a consultant for companies including Besser
Consulting, LLC, Beckman Coulter Genomics (a Beckman Coulter company), Cardionet, Inc. (NASDAQ: BEAT), DakDak Photoaging
Technologies, Inc. (acquired by Charles River Laboratories, Inc. (NYSE:CRL) in 2002), and Carl Zeiss. From March 2009 through
September 2010, he served as President of Nuvilex, Inc. (OTCQB: NVLX) which merged with Freedom2, Inc. where he served as
President and CEO from April 2006 through March 2009. He has also held senior management positions with Isolagen, Inc. (now
Fibrocell Science, Inc. (OTC BB: FCSC), Sirna Therapeutics, Inc. (acquired by Merck &amp; Co. (NYSE: MRK) in 2006), Advanced
Bionics Corporation (acquired by Sonova Holdings AG (SIX: SOON) in 2009) and Cytometrics, Inc, (acquired by Lekam Medical
Limited) where he was also a co-founder and served on the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr. Schmieg has expertise in financing,
mergers and acquisitions and the development of companies with novel technologies from lab to market. Selected transactions include
the multi-billion dollar sale of Advanced Bionics Corporation to Boston Scientific, the development and market launch of the Cytoscan
instrument for observation and measurement of the human micro-circulatory system, and establishing credible relationships with
the venture capital and investment banking communities. Martin has also practiced as a Certified Public Accountant. He is a graduate
of LaSalle University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Additional Information and Where to Find It:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the proposed Erye Sale,
the Company will be filing a proxy statement and other relevant documents with the SEC. INVESTORS ARE URGED TO READ THE PROXY STATEMENT
THAT WILL BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS
FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ON THE PROPOSED TRANSACTION. Investors will be able to obtain
the proxy statement (when it is available) and other relevant documents filed with the SEC free of charge at the SEC&rsquo;s website
at www.sec.gov. In addition, copies of the proxy statement (when available) and other documents filed by the Company with the SEC
with respect to the proposed transaction may be obtained free of charge by directing a request to: NeoStem, Inc., 420 Lexington
Avenue, Suite 450, New York, NY 10170, Attn: Catherine M. Vaczy, Vice President and General Counsel, (212) 584-4180.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Participants in the Solicitation:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This Current Report on Form 8-K may be deemed
to be solicitation material in respect of the proposed transaction. The Company and its directors and executive officers may be
deemed to be participants in the solicitation of proxies from the Company&rsquo;s stockholders in connection with the proposed
transaction. Information concerning the Company&rsquo;s directors and executive officers is set forth in the Company&rsquo;s Annual
Report on Form 10-K, filed by the Company with the SEC on March 20, 2012, as amended by Amendment No. 1 on Form 10-K/A, filed by
the Company with the SEC on April 30, 2012. Investors may obtain additional information regarding the interests of such persons
who may, under the rules of the SEC, be considered to be participants in the solicitation of the Company&rsquo;s stockholders in
connection with the proposed transaction by reading the proxy statement when it becomes available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Forward Looking Statements:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: windowtext">This Current
Report on Form 8-K, including Exhibit 99.1 hereto, contains &ldquo;forward-looking&rdquo; statements within the meaning of the
Private Securities Litigation Reform Act of 1995.&nbsp;&nbsp;Forward-looking statements are typically preceded by words such as
&ldquo;believes,&rdquo; &ldquo;expects,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;intends,&rdquo; &ldquo;will,&rdquo; &ldquo;may,&rdquo;
&ldquo;should,&rdquo; or similar expressions, although some forward-looking statements are expressed differently.&nbsp;&nbsp;Forward-looking
statements represent the Company&rsquo;s management judgment regarding future events.&nbsp;&nbsp;Although the Company believes
the expectations reflected in such forward-looking statements are reasonable, the Company can give no assurance that such expectations
will prove to be correct.&nbsp;&nbsp;All statements other than the statements of historical fact included in this Current Report
on Form 8-K are forward-looking statements.&nbsp;&nbsp;The Company cannot guarantee the accuracy of the forward-looking statements,
and you should be aware that the Company&rsquo;s actual results could differ materially from those contained in the forward-looking
statements due to a number of factors. Important factors that might cause such a difference include, but are not limited to, failure
of NeoStem&rsquo;s stockholders to approve the Erye Sale, failure to obtain PRC regulatory approvals in connection with consummation
of the Erye Sale, termination of the Agreement prior to Closing, the Company&rsquo;s need for outside financing to meet capital
requirements, </FONT><FONT STYLE="color: #010000">the Company's or its partners&rsquo; successful development of cell therapeutics,
as well as the future of the cell therapeutics industry and the rate at which such industry may grow</FONT><FONT STYLE="color: windowtext">
and other events and factors disclosed previously and from time to time in the Company&rsquo;s filing with the SEC, including NeoStem&rsquo;s
Annual Report on Form 10-K, filed by the Company with the SEC on March 20, 2012, as amended by Amendment No. 1 on Form 10-K/A,
filed by the Company with the SEC on April 30, 2012, the Company&rsquo;s Quarterly Report on Form 10-Q, filed by the Company with
the SEC on May 11, 2012, and other factors identified from time to time in the Company&rsquo;s periodic filings with the SEC. NeoStem
does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01.&nbsp;&nbsp;Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>(d)&nbsp;&nbsp;Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following exhibits are filed with this Current Report on
Form 8-K:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; font-size: 10pt; font-weight: bold">Exhibit<BR>
No.</TD>
    <TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 90%; border-bottom: windowtext 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Description</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">99.1</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">Press Release of NeoStem, Inc. dated July 9, 2012</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly&nbsp;caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <TD COLSPAN="3" STYLE="font-weight: bold">NEOSTEM, INC.</TD></TR>
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    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid">/s/ Catherine M. Vaczy</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Name:</TD>
    <TD COLSPAN="2">Catherine M. Vaczy, Esq.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Title:</TD>
    <TD COLSPAN="2">Vice President and General Counsel</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dated:&nbsp;&nbsp;July 9, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>v318013_ex99-1.htm
<DESCRIPTION>PRESS RELEASE
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<P STYLE="margin: 0; text-align: right">EXHIBIT 99.1</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NeoStem CEO&rsquo;s Letter to Shareholders</B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">NEW YORK, July 9, 2012 /Globe Newswire/ --</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear NeoStem Shareholders,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">NeoStem (NYSE MKT: NBS) is rapidly emerging as a technology
and market leading company in the fast developing cell therapy market. Our multifaceted business strategy combines a state-of-the-art
contract development and manufacturing organization (CDMO) with a medically important cell therapy product development program
enabling immediate and long-term revenue growth opportunities. Our service business and pipeline of proprietary cell therapy products
work in concert, giving NeoStem a competitive advantage that is unique to the biotechnology and pharmaceutical industries. Supported
by an experienced scientific and business management team and a dynamic patent and patent pending (IP) portfolio, NeoStem is well
positioned to succeed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We would like to take a moment to update you on the following
recent developments and important near term catalysts for the second half of 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD><B>Focus</B> - A definitive agreement to divest the Company&rsquo;s 51% ownership interest in Suzhou Erye Pharmaceutical Co.
Limited was signed on June 18<SUP>th</SUP>. This sale will bolster the Company&rsquo;s balance sheet, increase its cash position
by $12,280,000, and allow it to hone its focus on its cell therapy business. Of note, $1,228,000 (ten percent of the total cash
purchase price) has already been received by the Company. The transaction is expected to close no later than the 4<SUP>th</SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT>quarter,
subject to the satisfaction of various closing conditions including China regulatory approvals and NeoStem shareholder approval.&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD><B>Value and Liquidity -<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></B>The sale of Erye will also
return approximately 1.3% of the Company's fully diluted issued and outstanding shares to the Company consisting of 1,040,000 shares
of the Company's Common Stock and cancels 1,170,000 Common Stock options and&nbsp;640,000 Common Stock warrants. Additionally,
between July 16<SUP>th</SUP> and August 14<SUP>th</SUP>, 2012, 730,250 Class A public warrants are scheduled to expire.&nbsp; Liquidity
in NeoStem shares continues to rise with a three month trading average of<FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: black"><B>&nbsp;&nbsp;</B></FONT>1,108,660
which is leading most other NYSE MKT listed stem cell companies and we believe is an indicator of growing investor interest in
our mission and accomplishments.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD><B>Progress<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></B>- In January 2012, our acute myocardial infarction (AMI) therapeutic product development team achieved its forecasted goal of
enrolling the first patient in the PreSERVE Phase 2 clinical trial. We continue to open new clinical sites and expect to achieve
full enrollment over the next nine months or so and present top-line data by the end of 2013. In anticipation of future studies,
we have strategically positioned our IP with the goal of covering broad indications well beyond AMI, giving the Company strong
positions in both the cardiovascular and non-cardiovascular cell therapy markets.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD><B>Growth</B> - Our Progenitor Cell Therapy (PCT) CDMO
                                                                    service business continues to grow and has added new clients
                                                                    in later stage clinical trials setting the stage for expansion
                                                                    into larger and substantially more lucrative commercial manufacturing
                                                                    contracts. Each new client and business development opportunity
                                                                    affirms our belief that we have a unique technology platform
                                                                    capable of supporting both our internal development as well
                                                                    as the global cell therapy market. Great science and technology
                                                                    innovation comes from people who are committed and dedicated
                                                                    to their crafts. I am proud to say, and our results demonstrate,
                                                                    that the NeoStem team&rsquo;s expertise, quality and work
                                                                    ethic is unsurpassed in the cell therapy industry and we look
                                                                    forward to bringing this expertise to bear on the European
                                                                    market as we seek to expand our CDMO services to that region.</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD><B>New Leaders</B> - Last month <FONT STYLE="color: black">Martin
                                                                    Schmieg joined the NeoStem leadership team as Vice President,
                                                                    Corporate Development. Martin&rsquo;s focus will be to ensure
                                                                    that we capitalize on strategic opportunities that support
                                                                    NeoStem&rsquo;s mission of leading the cell therapy industry
                                                                    and creating maximum shareholder value. Martin brings to NeoStem
                                                                    his expertise in business development for health care product
                                                                    and medical technology companies</FONT> ranging from early-stage
                                                                    privately funded ventures to market driven public companies
                                                                    over his 25 year career<FONT STYLE="color: black">.</FONT>
                                                                    <FONT STYLE="color: black">While originally trained in accounting
                                                                    and finance, Martin also has expertise in financing, mergers
                                                                    and acquisitions, and the development of companies with novel
                                                                    technologies from lab to market. Martin was formerly the President
                                                                    and CEO of Freedom-2, Inc. Selected transactions include the
                                                                    multi-billion dollar sale of Advanced Bionics Corporation
                                                                    to Boston Scientific and the development and market launch
                                                                    of the Cytoscan instrument for observation and measurement
                                                                    of the human micro-circulatory system.</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
April 2012, Jonathan Sackner-Bernstein, MD, FACC joined the Company as Vice President of Clinical Development and Regulatory Affairs.
Jonathan brings to the Company over 20 years of experience as a clinical cardiologist and medical researcher with leadership in
healthcare management. Jonathan</FONT> <FONT STYLE="font: 10pt Times New Roman, Times, Serif">join</FONT>ed<FONT STYLE="font: 10pt Times New Roman, Times, Serif">
the team to advance Amorcyte's PreSERVE AMI Phase 2 trial and to provide regulatory support for NeoStem's product pipeline. His
experience as Associate Center Director for Technology and Innovation at the U.S. Food and Drug Administration's Center for Devices
and Radiological Health and as CMO of Clinilabs where he established a Phase 1 research unit, coupled with his experience as a
cardiologist, make him a welcomed addition to the management team at NeoStem. Jonathan also served as assistant professor of medicine
at the Columbia University College of Physicians and Surgeons from 1993 to 2003. His academic accomplishments include contributions
to medical therapy of heart failure and patients following heart attack as well as leadership in changing the paradigms of drug
development in heart failure, giving him the academic credentials to effectively dialogue with physicians at the clinical trial
sites and get cardiologists excited about our new therapy.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD><B>Optimization</B> - We continue to make great headway
                                                                    in integrating IT systems within our operations to maximize
                                                                    efficiencies. We believe that substantial cost savings also
                                                                    will be achieved with the closing of our Cambridge facility
                                                                    in September 2012 upon lease expiration and the consolidation
                                                                    of the Cambridge group&rsquo;s scientific expertise in stem
                                                                    cell biology, immunology, and hematology with PCT&rsquo;s
                                                                    broad expertise in commercial process and product development
                                                                    for cellular therapies. Merging our NeoStem Cambridge team
                                                                    with PCT&rsquo;s considerable cell therapy product development
                                                                    team allows PCT&rsquo;s development capabilities and efficiencies
                                                                    to facilitate our ongoing work with our immuno-cell therapy
                                                                    program through Athelos. Athelos will seek to build upon data
                                                                    from several in-progress physician-sponsored trials using
                                                                    T cell technology to treat GvHD and other immune mediated
                                                                    diseases. NeoStem&rsquo;s partnership with big pharma was
                                                                    established in 2011 through its co-ownership of Athelos, Inc.
                                                                    (80% NeoStem and 20% Becton Dickinson). We are actively pursuing
                                                                    additional strategic relationships with major pharmaceutical
                                                                    and biotechnology companies in 2012.</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&bull;</TD><TD><B>The Future</B> - The development of our pre-clinical
                                                                    VSEL<SUP>TM</SUP> Technology program continues to be funded
                                                                    substantially through U.S. Department of Defense (DoD) and
                                                                    National Institutes of Health (NIH) grants.&nbsp;In collaboration
                                                                    with investigators at Harvard&rsquo;s Schepens Eye Research
                                                                    Institute, the University of Michigan, and the Roger Williams
                                                                    Medical Center, NeoStem scientists have demonstrated that
                                                                    human VSELs show promising therapeutic potential in animal
                                                                    models of diseases that include retinal pathologies, bone
                                                                    defects, and traumatic and complex wound healing. We recently
                                                                    received a two year grant totaling $595,252 for the &quot;Development
                                                                    of Human, Autologous, Pluripotent Very Small Embryonic Like
                                                                    (VSELs) Stem Cells as a Countermeasure to Radiation Threat&quot;
                                                                    from the National Institute of Allergy and Infectious Diseases
                                                                    (NIAID), a division of NIH. This peer reviewed grant was awarded
                                                                    to support research to be headed by Denis O. Rodgerson, Ph.D.,
                                                                    Director of Stem Cell Science for NeoStem and Mariusz Ratajczak,
                                                                    M.D., Ph.D., head of the Stem Cell Biology Program at the
                                                                    James Graham Brown Cancer Center at the University of Louisville
                                                                    and co-inventor of VSEL<SUP>TM</SUP> Technology.</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We look forward to keeping you updated and encourage your questions
via the contact information below. Thank you for your continued support of NeoStem and our ongoing transformation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sincerely,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dr. Robin L. Smith<BR>
Chairman and CEO</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For more information, please contact:</P></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">&nbsp;</TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">&nbsp;</TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">Trout Group</TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">NeoStem, Inc.</TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">Gitanjali Jain Ogawa, Vice President</TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">Robin Smith, CEO</TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">Phone: +1-646-378-2949</TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">Phone: +1-212-584-4174</TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">Email: gogawa@troutgroup.com &nbsp;</TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">Email: rsmith@neostem.com</TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt">&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>About NeoStem, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #010000">NeoStem, Inc. (&quot;we,&quot; &quot;NeoStem&quot;
or the &quot;Company&quot;) continues to develop and build on its core capabilities in cell therapy to capitalize on the paradigm
shift that we see occurring in medicine. In particular, we anticipate that cell therapy will have a large role in the fight against
chronic disease and in lessening the economic burden that these diseases pose to modern society. Our January 2011 acquisition of
Progenitor Cell Therapy, LLC (&quot;PCT&quot;) provides NeoStem with a foundation in both manufacturing and regulatory affairs
expertise. We believe this expertise, coupled with our existing research capabilities and collaborations, will allow us to achieve
our mission of becoming a premier cell therapy company. Our PCT subsidiary's manufacturing base is one of the few current Good
Manufacturing Practices (&quot;cGMP&quot;) facilities available for contracting in the burgeoning cell therapy industry. Amorcyte,
LLC (&quot;Amorcyte&quot;), which we acquired in October 2011, is developing a cell therapy for the treatment of cardiovascular
disease. Amorcyte's lead compound, AMR-001, represents NeoStem's most clinically advanced therapeutic and Amorcyte is enrolling
patients for a Phase 2 trial to investigate AMR-001's efficacy in preserving heart function after a heart attack. We also expect
to begin a Phase 1 clinical trial by 2012/2013 to investigate AMR-001's utility in arresting the progression of congestive heart
failure and the associated comorbidities of that disease. Athelos Corporation, which is approximately 80%-owned by our subsidiary,
PCT, is engaged in collaboration with Becton-Dickinson that is exploring the earlier stage clinical development of a T-cell therapy
for autoimmune conditions. In addition, our pre-clinical assets include our VSEL<SUP>TM </SUP>Technology platform as well as our
MSC (mesenchymal stem cells) product candidate for regenerative medicine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: #010000">For more information on NeoStem,
please visit </FONT>www.neostem.com<FONT STYLE="color: #010000">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Forward-Looking Statements for NeoStem, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #010000">This press release contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's
current expectations, as of the date of this press release, and involve certain risks and uncertainties. Forward-looking statements
include statements herein with respect to the successful execution of the Company's business strategy, including with respect to
our ability to successfully consummate the sale of our interest in Erye, the Company's or its partners&rsquo; successful development
of cell therapeutics, as well as the future of the cell therapeutics industry and the rate at which such industry may grow. The
Company's actual results could differ materially from those anticipated in these forward- looking statements as a result of various
factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking
statements include the &quot;Risk Factors&quot; described in the Company's Annual Report on Form 10-K filed with the Securities
and Exchange Commission on March 20, 2012 and in the Company's periodic filings with the Securities and Exchange Commission. The
Company's further development is highly dependent on future medical and research developments and market acceptance, which is outside
its control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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