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<SEC-DOCUMENT>0001178913-09-002357.txt : 20091006
<SEC-HEADER>0001178913-09-002357.hdr.sgml : 20091006
<ACCEPTANCE-DATETIME>20091006160105
ACCESSION NUMBER:		0001178913-09-002357
CONFORMED SUBMISSION TYPE:	424B5
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20091006
DATE AS OF CHANGE:		20091006

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PLURISTEM THERAPEUTICS INC
		CENTRAL INDEX KEY:			0001158780
		STANDARD INDUSTRIAL CLASSIFICATION:	BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
		IRS NUMBER:				980351734
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-151761
		FILM NUMBER:		091108088

	BUSINESS ADDRESS:	
		STREET 1:		MATAM ADVANCED TECHNOLOGY PARK
		STREET 2:		BUILDING NO. 20
		CITY:			HAIFA
		STATE:			L3
		ZIP:			31905
		BUSINESS PHONE:		972-4-850-1080

	MAIL ADDRESS:	
		STREET 1:		MATAM ADVANCED TECHNOLOGY PARK
		STREET 2:		BUILDING NO. 20
		CITY:			HAIFA
		STATE:			L3
		ZIP:			31905

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PLURISTEM LIFE SYSTEMS INC
		DATE OF NAME CHANGE:	20030701

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AI SOFTWARE INC
		DATE OF NAME CHANGE:	20010906
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>zk97328.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        \\Backup\edgar filing\Pluristem Therapeutics Inc\97328\a97328.eep -->
     <!-- Control Number: 97238                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Pluristem Therapeutics Inc                                       -->
     <!-- Project Name:   424B5                                                            -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>424B5</TITLE>
</HEAD>
<BODY>

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<HR ALIGN=LEFT WIDTH=100% SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE STYLE="margin-top: -10px">

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<H1 ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filed Pursuant to Rule
424(b)(5) </FONT></H1>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Registration
No.&nbsp;333-151761</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<p ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>PROSPECTUS SUPPLEMENT
NO. 4</B> </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>(to prospectus dated July 1, 2008, as
previously supplemented </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>by Prospectus Supplement
No. 1 filed on August 6, 2008, </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Prospectus Supplement No.
2 filed on September 24, 2008 and <BR>Prospectus Supplement No. 3 filed on May 6, 2009)</FONT></P>





<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH WIDTH=60%><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH WIDTH=40%><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>2,702,822 shares of common stock</FONT></TD>
     <TD ALIGN=LEFT rowspan=5><IMG SRC="pluristem.jpg"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Warrants to purchase up to 1,081,129 shares of common stock</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Price per share: $1.12</FONT></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Exercise price of warrants: $1.60 per share of common stock</FONT></TD>
     </TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pluristem Therapeutics Inc. is
offering for sale 2,702,822 shares of its common stock and warrants to purchase up to
1,081,129 shares of common stock pursuant to this prospectus supplement and related
prospectus attached hereto. We use the term, this Prospectus, to mean this prospectus
supplement and the accompanying prospectus, including the information incorporated by
reference herein. This Prospectus also covers the shares of common stock issuable upon
exercise of the warrants. Warrants may be purchased only together with shares of common
stock but may be subsequently transferred separately. A warrant to purchase 0.40 share of
common stock will be issued together with each share of common stock purchased. The shares
and the warrants are sometimes collectively referred to as units. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The last reported sale price on the
Nasdaq Capital Market of our common stock on October 5, 2009 was $1.32 per share, and the
closing bid price was $1.32 per share. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Common stock trading symbols: Nasdaq
Capital Market: PSTI. Frankfurt Stock Exchange: PJT. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>This investment involves a high
degree of risk.&nbsp; See &#147;Risk Factors&#148; beginning on page S-4, as well as the
section called &#147;Risk Factors&#148; beginning on page 9 of our Annual Report on Form
10-K for our 2009 fiscal year filed with the Securities and Exchange Commission and
incorporated by reference into the accompanying prospectus.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Neither the Securities and
Exchange Commission nor any state securities commission has approved or disapproved of
these securities, or determined if this prospectus supplement or the accompanying
prospectus is truthful or complete.&nbsp; Any representation to the contrary is a criminal
offense.</B> </FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Per Share</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Per Warrant<BR>
Exercise Share</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Total</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="65%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Public offering price for shares</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 1.12</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 3,027,161</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Placement agency fees</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>7</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>186,901</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Public offering price (exercise price) for warrant exercise shares</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 1.60</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 1,729,806</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Total proceeds, before expenses, to Pluristem Therapeutics Inc. from both</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;shares and warrant exercise shares</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> 1.12</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> 1.60</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> 4,756,967</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Delivery of the units will be made on
or about October 12, 2009.&nbsp; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Roth Capital Partners, LLC has been
retained to act as placement agent in the offering of units. The placement agent is not
purchasing or selling any of our securities pursuant to this prospectus supplement or the
accompanying prospectus, nor are we requiring any minimum purchase or sale of any specific
number of securities. Because there is no minimum offering amount required as a condition
to closing in the offering of units, the placement agency fees and net proceeds to us, if
any, in this offering may be less than the offering amounts set forth above. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Roth Capital Partners,
LLC </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The date of this prospectus supplement is October 6, 2009. </FONT></P>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TABLE OF CONTENTS</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROSPECTUS SUPPLEMENT</FONT></P>







<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Page</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=90% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk101">ABOUT THIS PROSPECTUS SUPPLEMENT</a></FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>S-3</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk102">THE OFFERING</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>S-3</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk103">RISK FACTORS</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>S-4</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk104">USE OF PROCEEDS</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>S-4</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk105">DILUTION</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>S-5</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk106">PLAN OF DISTRIBUTION</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>S-5</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk107">DESCRIPTION OF WARRANTS</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>S-6</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk108">LEGAL MATTERS</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>S-8</FONT></TD></TR>
</TABLE><BR>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROSPECTUS</FONT></P>







<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Page</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=90% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk109">ABOUT THIS PROSPECTUS</a></FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>2</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk110">OUR COMPANY</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>2</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk111">RISK FACTORS</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>2</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk112">SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION </a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>2</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk113">USE OF PROCEEDS</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>3</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk114">THE SECURITIES WE MAY OFFER</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>3</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk115">DESCRIPTION OF COMMON STOCK</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>3</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk116">DESCRIPTION OF WARRANTS</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>3</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk117">PLAN OF DISTRIBUTION</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>5</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk118">VALIDITY OF SECURITIES</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>6</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk119">EXPERTS</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>6</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk120">WHERE YOU CAN FIND MORE INFORMATION</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>6</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk121">INCORPORATION OF DOCUMENTS BY REFERENCE</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>7</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>You should rely only on the
information contained in or incorporated by reference into this prospectus supplement and
the accompanying prospectus. We have not authorized anyone to provide you with different
information. If anyone provides you with different or inconsistent information, you should
not rely on it. We are not making an offer to sell these securities in any jurisdiction
where the offer or sale is not permitted. The information in this prospectus supplement
and the accompanying prospectus is accurate only as of the date it is presented. Our
business, financial condition, results of operations and prospects may have changed since
these dates. </FONT></P>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<a name=zk101></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ABOUT THIS PROSPECTUS
SUPPLEMENT </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This prospectus supplement and the
accompanying prospectus dated July 1, 2008 (as supplemented and amended to date) are part
of a &#147;shelf&#148; registration statement on Form S-3 filed with the Securities and
Exchange Commission, and declared effective by the Securities and Exchange Commission on
July 1, 2008. By using a &#147;shelf&#148; registration statement, we may sell shares of
common stock and warrants to purchase common stock as described in the accompanying
prospectus from time to time in one or more offerings up to a total of $15,000,000. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>These documents contain important
information you should consider when making your investment decision. The accompanying
prospectus provides you with a general description of the securities we may offer. This
prospectus supplement contains information about the securities offered by this prospectus
supplement. This prospectus supplement may add, update or change information in the
accompanying prospectus. You should rely only on the information contained in this
prospectus supplement, the accompanying prospectus or incorporated by reference into this
prospectus supplement and the accompanying prospectus. We have not authorized anyone to
provide you with any other information. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This prospectus supplement does not
constitute an offer to sell, or a solicitation of an offer to buy, the securities offered
hereby in any jurisdiction where, or to any person to whom, it is unlawful to make such
offer or solicitation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The information contained in this
prospectus supplement is accurate only as of the date of this prospectus supplement and
the accompanying prospectus, regardless of the time of delivery of this prospectus or of
any sale of securities. </FONT></P>

<a name=zk102></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE OFFERING </FONT></P>


<TABLE CELLPADDING=3 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Top>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Common stock and warrants offered by us pursuant to this prospectus</FONT></TD>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>2,702,822 shares of common stock, plus warrants to purchase up to additional 1,081,129 shares of common stock. This prospectus also covers the shares of common stock issuable upon exercise of the warrants offered hereby.</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Common stock outstanding as of September 23, 2009</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>15,796,181 shares of common stock.</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Warrants outstanding as of September 23, 2009</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Warrants to purchase up to 8,924,936 shares of common stock at a weighted average purchase price of $2.48 per share. (1)</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Common stock to be outstanding after this offering (pro forma as of September 23, 2009, excluding outstanding warrants to purchase 8,924,936 shares with a weighted average exercise price of $2.48 per share)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>18,499,003 shares of common stock, or 19,580,132 shares of common stock if the warrants sold in this offering are fully exercised. (1)</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Common stock to be outstanding after this offering (pro forma as of September 23, 2009 including outstanding warrants to purchase 8,924,936 shares with a weighted average exercise price of $2.48 per share)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>27,423,939 shares of common stock, or 28,505,068 shares of common stock, if the warrants sold in this offering are fully exercised. (1)</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Terms of warrants offered by us pursuant to this prospectus</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Five year term initially exercisable 6 months after date of issuance, $1.60 per share exercise price</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Use of proceeds</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>We intend to use the net proceeds from this offering to fund the preparation of our Phase-II clinical trials in the USA or Germany and for general working capital and administrative expenses. See "Use of Proceeds" on page S-4.</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Nasdaq Capital Market common stock symbol</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>PSTI</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Risk factors</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>This investment involves a high degree of risk. See "Risk Factors" on page S-4 of this prospectus supplement and in our last Annual Report on Form 10-K filed with the SEC.</FONT></TD></TR>
</TABLE><BR>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)
          Excludes options outstanding on September 23, 2009, to purchase a total of
          2,723,231 shares of common stock at a weighted-average exercise price of $3.85
          per share. </FONT></P>

<p align=center>
<font size=2>S - 3</font></p>
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<page>

<a name=zk103></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RISK FACTORS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
in our common stock and/or warrants involves a high degree of risk. Before making an
investment decision, you should carefully consider the risks and uncertainties described
below, together with all of the other information appearing in the accompanying
prospectus or incorporated by reference therein, in light of your particular investment
objectives and financial circumstances before you invest in our securities. In
particular, we urge you to read the material under &#147;Risk Factors&#148; beginning on
page 9 of our Annual Report on Form 10-K for our 2009 fiscal year, as filed with the
Securities and Exchange Commission. If any of these risks actually occurs, our business,
financial condition, results of operations and future growth prospects would be
materially adversely affected. The trading price of our securities could decline due to
any of these risks, and you may lose all or part of your investment. This prospectus
supplement and the accompanying prospectus and the information incorporated by reference
into this prospectus supplement and the accompanying prospectus also contain
forward-looking statements that involve risks and uncertainties. Our actual results could
differ materially from those anticipated in these forward-looking statements as a result
of certain factors, including the risks so mentioned. Please note the following
additional risk factor.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>We
have a potential conflict with a&nbsp;&nbsp;prior financing&nbsp;agreement that may
expose us to potential litigation</U> </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In our subscription agreement for our
May 2007 equity financing, or the Prior Financing Agreement, there is a provision that
requires us for a period of four years (subject to acceleration under certain
circumstances) not to sell any of our common stock for less than $.0125 per share. The
Prior Financing Agreement provides that any sale below that number must be preceded by a
consent from each purchaser in the placement. Since that date, we have effected a
one-for-200 reverse stock split. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In August, 2008, we entered into
securities purchase agreements pursuant to which&nbsp;we sold securities at a price higher
than the pre-split price of $0.125 and below the post-split price of $2.50.&nbsp;We
decided to proceed with this offering notwithstanding this provision for the following
reasons: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
agreement did not contain any provisions for the adjustment of the specified minimum
price in the event of stock splits and the like. If such agreement were to have contained
such a provision, the floor price would be $2.50, which is more than the offering price
of this offering. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
majority of purchasers in the private placement have sold the stock purchased in the
placement, and thus the number of purchasers whose consent is purportedly required has
been substantially reduced. The number of shares outstanding as to which this provision
currently applies according the information supplied by our transfer agent is 1,848,545
shares. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>An
agreement that prevents our Board of Directors from issuing shares that are necessary to
finance our business may be unenforceable. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings 2">&#151;</font></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Even
if the agreement were considered enforceable and the share price number were to be
adjusted for our reverse stock split, we believe that there would be no damage from this
offering to the holders of our shares whose consent is purportedly required. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the event that a court were to
hold that the issuance of shares below $2.50 per share would violate the Prior Financing
Agreement, it is unclear what remedy the court might impose.&nbsp;&nbsp;If the court were
to impose a remedy that would be the equivalent of an anti-dilution provision (which is
not contained in the Prior Financing Agreement), any issuance of shares would be dilutive
to our shareholders, including those who purchase shares in the current offering. In
addition, since August 2008, we, on several occasions, raised funds at a price per share
which is higher than the pre-split price of $0.125 and below the post-split price of
$2.50. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In connection with financing that
took place in August 2008, we approved the issuance of warrants to purchase up to 147,884
shares of our common stock to each of the investors who was a party to the Prior Financing
Agreement that held shares purchased pursuant to such agreement, as of August, 2008,
conditioned on having the investors execute a general release pursuant to which we will be
released from liability including, but not limited to, any claims, demands, or causes of
action arising out of, relating to, or regarding sales of certain equity securities
notwithstanding the above mentioned provision. As of September 23, 2009 we received a
general release from some of the investors, and issued them warrants to purchase 70,368
shares of our common stock. </FONT></P>

<a name=zk104></a>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>USE OF PROCEEDS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The proceeds we expect to receive
from the offering of units will be $3,027,161, before deducting the placement agency fee
and estimated offering expenses payable by us and excluding any proceeds from the
potential exercise of warrants offered hereby. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We intend to use the net proceeds from this offering to fund the preparation of our Phase-II clinical
trials in the USA or Germany and for general working capital and administrative expenses.  The amounts
and timing of the expenditures may vary significantly depending on numerous factors, such as the
progress of our preparation for the Phase II clinical trials and other research and development efforts,
technological advances and the competitive environment for our products. We undertook not to use such
proceeds from this offering for: (a) the satisfaction of any portion of our debt (other than payment of
trade payables in the ordinary course of our business and prior practices), (b) the redemption of any
Common Stock or Common Stock Equivalents or (c) the settlement of any outstanding litigation. Although
we have no specific agreements, commitments or understandings with respect to any acquisition, we
evaluate acquisition opportunities and engage in related discussions with other companies from time to
time. Pending the use of the net proceeds, we intend to invest the net proceeds in short-term,
interest-bearing, investment-grade securities.
</FONT></P>

<p align=center>
<font size=2>S - 4</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our management will have broad
discretion in the application of the net proceeds and investors will be relying upon the
judgment of our management regarding the application of these proceeds. We reserve the
right to change the use of these proceeds. Depending upon the timing of receipt of any
warrant exercise shares proceeds, we would use such proceeds for such corporate purposes
as our management and Board of Directors may approve at the time. Such purposes may be
different from the anticipated purposes as of the date of this prospectus supplement. </FONT></P>

<a name=zk105></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DILUTION </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If you purchase our common stock in
this offering (either as a component of units or upon warrant exercise), your interest
will be diluted to the extent of the difference between the public offering price per
share and the net tangible book value per share of our common stock after this offering.
We calculate net tangible book value per share by dividing the net tangible book value,
tangible assets less total liabilities, by the number of outstanding shares of our common
stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our net tangible book value at June
30, 2009, was $3.4 million, or $0.23 per share, based on 14,738,693 shares of our common
stock outstanding as of that date. After giving effect to the sale of 2,702,822 shares
of common stock by us at a public offering price of $1.12 per share, less the placement
agency fees, our net tangible book value as of June 30, 2009 would have been approximately
$6.24 million, or $0.36 per share. This represents an immediate increase in the net
tangible book value of approximately $0.13 per share to existing stockholders and an
immediate dilution of $0.76 per share to investors in this offering. The following table
illustrates this per share dilution: </FONT></P>



<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="700" ALIGN="CENTER">
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD WIDTH="61%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Public offering price per share</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 1.12</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Net tangible book value per share as of June 30, 2009</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>         0.23</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Increase in net tangible book value per share after this offering</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>         0.13</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Net tangible book value per share after this offering</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> 0.36</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Dilution per share to new investors</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 0.76</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=1></TD><TD></TD></TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The foregoing per share dilution does
not give effect to the potential exercise of the warrants offered hereby. Assuming the
sale of all units offered hereby and also the exercise of all warrants within such units,
the per share dilution would be as follows: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our net tangible book value at June
30, 2009, was $3.4 million or $0.23 per share, based on 14,738,693 shares of our common
stock outstanding as of that date (1).&nbsp; After giving effect to the sale of
3,783,951shares of common stock (inclusive of 1,081,129 warrant shares) by us at a blended
public offering price of $1.26 per share, less the placement agency fees, our net tangible
book value as of June 30, 2009, would have been approximately $7.97 million, or $0.43 per
share.&nbsp; This represents an immediate increase in the net tangible book value of
approximately $0.20 per share to existing stockholders and an immediate dilution of
$0.83&nbsp;per share to investors in this offering. The following table illustrates this
per share dilution: </FONT></P>


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="700" ALIGN="CENTER">
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD WIDTH="61%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Public offering price per share</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 1.26</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Net tangible book value per share as of June 30, 2009</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>         0.23</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Increase in net tangible book value per share after this offering</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>         0.20</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Net tangible book value per share after this offering</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> 0.43</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>Dilution per share to new investors</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 0.83</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=1></TD><TD></TD></TR>
</TABLE>
<BR>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In July 2009 certain
warrants and options were exercised, the impact of such exercise was not taken
into account in the calculation of the dilution above. The exercise of such options and
warrants was in connection with a securities purchase agreement reported
December 3, 2008. Accordingly, investors have exercised 1,058,708
shares of common stock at a purchase price of $0.75 per share, for an aggregate purchase
price of $794,030, and warrants to purchase up to an additional 1,058,708 shares of common
stock with an exercise price of $1.50 per share.
</FONT></P>

<a name=zk106></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PLAN OF DISTRIBUTION </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have entered into a placement
agency agreement, dated as of October 6, 2009, with Roth Capital Partners, LLC. Subject to
the terms and conditions contained in the placement agency agreement, Roth Capital
Partners, LLC has agreed to act as the placement agent in connection with the sale of
shares of common stock and warrants to purchase shares of common stock. The placement
agent is not purchasing or selling any securities offered by this prospectus supplement
and the accompanying prospectus, nor is it required to arrange the purchase or sale of any
specific number or dollar amount of the securities, but it has agreed to use its
reasonable efforts to arrange for the sale of all of the securities in this offering.
There is no required minimum number of securities that must be sold as a condition to
completion of the offering. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The placement agency agreement
provides that the obligations of the placement agent are subject to certain conditions
precedent, including, among other things, the absence of any material adverse change in
our business and the receipt of certain customary opinions, letters and closing
certificates. </FONT></P>

<p align=center>
<font size=2>S - 5</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have entered into purchase
agreements directly with purchasers in connection with this offering, and we will only
sell to purchasers who have entered into purchase agreements. We currently anticipate that
the closing of the sale of the units offered hereby will take place on or before October
12, 2009. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upon closing, we will deliver to each
purchaser delivering funds the number of shares purchased by such purchaser through the
facilities of The Depository Trust Company and will deliver a physical warrant certificate
to each purchaser within three business days immediately following the closing. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We have agreed to pay the placement agent an aggregate fee equal to 7.0% of the gross proceeds from the
sale of units in this offering minus $25,000.   We are not obligated to pay the placement agent any
additional fee when and if the warrants are exercised.  In addition, we have agreed to pay the fees,
disbursements and other charges of counsel to the placement agent in an amount equal to not more than 1%
of the gross proceeds from the sale of units in this offering.
</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Pursuant to a requirement by FINRA, the maximum commission or discount to be received by any FINRA
member or independent broker/dealer may not be greater than 8.0% of the gross proceeds received by us
for the sale of any securities being registered pursuant to SEC Rule 415. Assuming that all of the
securities offered hereby are sold, the placement agent's fee will be approximately $186,901.24.
Because there is no minimum offering amount required as a condition to closing in this offering,
however, the actual total offering fees, if any, are not presently determinable and may be substantially
less than such amount.
</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have agreed to indemnify the
placement agent and certain other persons against certain liabilities, including civil
liabilities under the Securities Act of 1933, as amended, and the Securities Exchange Act
of 1934, as amended, and to contribute to payments that the placement agent may be
required to make in respect of those liabilities. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The placement agent has informed us
that it will not engage in over-allotment, stabilizing transactions or syndicate covering
transactions in connection with this offering. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have agreed to certain lock-up
provisions with regard to future sales of our common stock and other securities
convertible into or exercisable or exchangeable for common stock for a period of thirty
(30) days after the offering as set forth in the placement agency agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The transfer agent for our common
stock is American Stock Transfer &amp; Trust Company, Brooklyn, New York. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our common stock is traded on the Nasdaq
Capital Market and the Frankfurt Stock Exchange under the symbols &#147;PSTI&#148; and
&#147;PJT&#148;, respectively. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The placement agent may distribute
this prospectus supplement and the accompanying prospectus electronically. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The placement agency agreement has been
included as an exhibit to a Current Report on Form 8-K that was filed with the SEC on
October 6, 2009 and has been incorporated by reference into the registration statements of
which this prospectus supplement forms a part. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>From time to time in the ordinary
course of its business, the placement agent or its affiliates may in the future engage in
investment banking, commercial banking and/or other services with us and our affiliates
for which it may in the future receive customary fees and expenses. </FONT></P>

<a name=zk107></a>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DESCRIPTION OF WARRANTS </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The warrants to be issued in this offering represent the right to purchase up to 1,081,129
shares of common stock at an initial exercise price of $1.60 per share. Each warrant may be exercised at
any time and from time to time on or after April 12, 2010 and through and including April 12, 2015.
</FONT></P>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exercise </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders
of the warrants may exercise their warrants to purchase shares of our common stock on or
before the expiration date by delivering (i)&nbsp;an exercise notice, appropriately
completed and duly signed, and (ii)&nbsp;if such holder is not utilizing the cashless
exercise provisions, payment of the exercise price for the number of shares with respect
to which the warrant is being exercised. Warrants may be exercised in whole or in part,
but only for full shares of common stock, and any portion of a warrant not exercised
prior to the expiration date shall be and become void and of no value. We provide certain
rescission, compensation and buy-in rights to a holder if we fail to deliver the shares
of common stock underlying the warrants by the third trading day after delivery to us of
the exercise notice. With respect to the rescission rights, the holder has the right to
rescind the exercise. The buy-in rights apply if after such third trading day the holder
purchases (in an open market transaction or otherwise) shares of our common stock to
deliver in satisfaction of a sale by the holder of the warrant shares that the holder
anticipated receiving from us upon exercise of the warrant. In this event, we will:  </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>pay
cash to the holder in an amount equal to the excess (if any) of the buy-in price over the
product of (A)&nbsp;such number of shares of common stock, times (B)&nbsp;the price at
which the sell order giving rise to holder&#146;s purchase obligation was executed;&nbsp;and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>at
the election of holder, either (A)&nbsp;reinstate the portion of the warrant as to such
number of shares of common stock, or (B)&nbsp;deliver to holder a certificate or
certificates representing such number of shares of common stock. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>S - 6</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, the warrant holders are entitled to a &#147;cashless exercise&#148; option if,
at any time of exercise, there is no effective registration statement registering, or no
current prospectus available for, the issuance or resale of the shares of common stock
underlying the warrants. This option entitles the warrant holder to elect to receive
fewer shares of common stock without paying the cash exercise price. The number of shares
to be issued would be determined by a formula based on the total number of shares with
respect to which the warrant is being exercised, the volume weighted average of the
prices per share of our common stock on the trading date immediately prior to the date of
exercise and the applicable exercise price of the warrants.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
shares of common stock issuable on exercise of the warrants will be, when issued in
accordance with the warrants, duly and validly authorized, issued and fully paid and
non-assessable. We will authorize and reserve at least that number of shares of common
stock equal to the number of shares of common stock issuable upon exercise of all
outstanding warrants.  </FONT></P>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Delivery of
Certificates&nbsp; </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the holder&#146;s exercise of a warrant, we will promptly, but in no event later than
three trading days after the exercise date, issue and deliver, or cause to be issued and
delivered, a certificate for the shares of common stock issuable upon exercise of the
warrant. In addition, we will, if the holder provides the necessary information to us,
issue and deliver the shares electronically through The Depository Trust&nbsp;Corporation
through its Deposit Withdrawal Agent Commission System or another established clearing
corporation performing similar functions.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certain Adjustments&nbsp; </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
exercise price and the number of shares of common stock purchasable upon the exercise of
the warrants are subject to adjustment upon the occurrence of the following events: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock
Dividends and Splits</u> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If,
at any time while the warrant is outstanding, we (i) pay a stock dividend or otherwise
make a distribution on shares of common stock or any other equity or equity equivalent
securities payable in shares of common stock, (ii) subdivide outstanding shares of common
stock into a larger number of shares, (iii) combine outstanding shares of common stock
into a smaller number of shares, or (iv) issue by reclassification of common stock any
shares of capital stock, then in each such case the exercise price shall be multiplied by
a fraction of which the numerator shall be the number of shares of common stock
outstanding immediately before such event and of which the denominator shall be the
number of shares of common stock outstanding immediately after such event, and the number
of shares issuable upon exercise of this Warrant shall be proportionately adjusted such
that the aggregate exercise price of the warrant shall remain unchanged.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Subsequent
Rights Offerings</u> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If,
at any time while the warrant is outstanding, we issue rights, options or warrants to all
holders of our common stock entitling them to purchase our common stock at a price per
share less than the volume weighted average price on the date of the issuance of such
rights, options or warrants, then the exercise price shall be multiplied by a fraction,
of which the denominator shall be the number of shares of common stock outstanding on the
date of issuance of such rights or warrants plus the number of additional shares of
common stock offered for subscription or purchase, and of which the numerator shall be
the number of shares of common stock outstanding on the date of issuance of such rights
or warrants plus the number of shares which the aggregate offering price of the total
number of shares so offered would purchase at such volume weighted average price.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Pro
Rata Distributions</u> </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If,
at any time while the warrant is outstanding, we distribute evidences of our indebtedness
or assets or rights or warrants to purchase any security other than our common stock to
all holders of our common stock (the &#147;Distribution&#148;), then the exercise price
will adjust pursuant to a volume weighted average price based ratio that takes into
account the then per share fair market value of the portion of the Distribution
applicable to one outstanding share of the Common Stock.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Fundamental
Transaction</u> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If,
at any time while the warrant is outstanding, we (i)&nbsp;consolidate or merge with or
into another corporation, (ii)&nbsp;sell all or substantially all of our assets or (iii)&nbsp;are
subject to or complete a tender or exchange offer pursuant to which holders of our common
stock are permitted to tender or exchange their shares for other securities, cash or
property, (iv)&nbsp;effect any reclassification of our common stock or any compulsory
share exchange pursuant to which our common stock is converted into or exchanged for
other securities, cash or property, each, a Fundamental Transaction, then the holders
shall have the right thereafter to receive, upon exercise of the warrant, the same amount
and kind of securities, cash or property as it would have been entitled to receive upon
the occurrence of such Fundamental Transaction if it had been, immediately prior to such
Fundamental Transaction, the holder of the number of warrant shares then issuable upon
exercise of the warrant, which we refer to in this prospective supplement as Alternate
Consideration. Any successor to us, surviving entity or the corporation purchasing or
otherwise acquiring such assets shall assume the obligation to deliver to the holder such
Alternate Consideration as the holder may be entitled to purchase, and the other
obligations under the warrant.  </FONT></P>

<p align=center>
<font size=2>S - 7</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of certain Fundamental Transactions, the holders of the warrants will be
entitled to receive, in lieu of our common stock and at the holders&#146; option, cash in
an amount equal to the value of the remaining unexercised portion of the warrant on the
date of the transaction determined using a Black-Scholes option pricing model with an
expected volatility equal to the 100&nbsp;day historical price volatility obtained from
Bloomberg L.P. as of the trading day immediately prior to the public announcement of the
transaction.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notice of Corporate
Action&nbsp; </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will provide notice to holders of the warrants to provide such holders with an
opportunity to exercise their warrants and hold common stock in order to participate in
or vote on the following corporate events if we (i) declare a dividend on the common
stock, (ii) declare a special nonrecurring cash dividend on or a redemption of the common
stock, (iii) authorize the granting to all holders of the common stock rights or warrants
to subscribe for or purchase any shares of capital stock of any class or of any rights,
(iv) require the approval of any stockholders in connection with any reclassification of
the common stock, any consolidation or merger to which we are a party, any sale or
transfer of all or substantially all of our assets, any compulsory share exchange whereby
the common stock is converted into other securities, cash or property, or (v) authorize
the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the
Company.  </FONT></P>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Limitations on
Exercise&nbsp; </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
number of warrant shares that may be acquired by the holder upon any exercise of the
warrant shall be limited to the extent necessary to insure that, following such exercise
(or other issuance), the total number of shares of common stock then beneficially owned
by such holder and its affiliates and any other persons whose beneficial ownership of
common stock would be aggregated with the holder&#146;s for purposes of Section&nbsp;13(d)
of the Exchange Act, does not exceed 4.99% of the total number of issued and outstanding
shares of common stock (including for such purpose the shares of common stock issuable
upon such exercise), which we refer to as the Beneficial Ownership Limitation. The holder
may elect to change the Beneficial Ownership Limitation from 4.99% to 9.9% of the total
number of issued and outstanding shares of common stock (including for such purpose the
shares of common stock issuable upon such exercise) upon 61&nbsp;days&#146; prior written
notice.  </FONT></P>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Waivers and Amendments </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The warrants may be modified or
amended and the provisions therein may be waived with the written consent of the Company
and holders holding warrants at least equal to 67% of the warrant shares issuable upon
exercise of all then outstanding warrants. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Additional
Provisions&nbsp; </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
above summary of certain terms and provisions of the warrants is qualified in its
entirety by reference to the detailed provisions of the warrants, the form of which will
be filed as an exhibit to a current report on Form&nbsp;8-K that will be incorporated
herein by reference. We are not required to issue fractional shares upon the exercise of
the warrants. No holders of the warrants will possess any rights as a stockholder under
those warrants until the holder exercises those warrants. The warrants may be transferred
independent of the common stock they were issued with, on a form of assignment, subject
to all applicable laws.  </FONT></P>


<a name=zk108></a>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LEGAL MATTERS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The validity of the securities
offered by this prospectus supplement has been passed upon for us by Zysman, Aharoni,
Gayer &amp; Co./Sullivan &amp; Worcester LLP, Boston, Massachusetts. Lowenstein Sandler
PC, Roseland, New Jersey is acting as counsel for the placement agent in connection with
the offering. </FONT></P>

<p align=center>
<font size=2>S - 8</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><IMG SRC="pluristem.jpg"></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$15,000,000 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>PLURISTEM THERAPEUTICS
INC. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Common Stock </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Warrants </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We may from time to time sell common
stock and warrants to purchase common stock in one or more offerings for an aggregate
initial offering price of $15,000,000. We refer to the common stock and the warrants to
purchase common stock collectively as the securities. This prospectus describes the
general manner in which our securities may be offered using this prospectus. We will
specify in an accompanying prospectus supplement the terms of the securities to be offered
and sold. We may sell these securities to or through underwriters or dealers, directly to
purchasers or through agents. We will set forth the names of any underwriters, dealers or
agents in an accompanying prospectus supplement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our common stock is traded on the
NASDAQ Capital Market under the symbol &#147;PSTI&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Investing in our securities involves
risks. See &#147;Risk Factors&#148; on page&nbsp;3 of this prospectus. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these
securities or passed upon the adequacy or accuracy of this prospectus. Any representation
to the contrary is a criminal offense. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This prospectus is
dated July 1, 2008. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TABLE OF CONTENTS </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Page</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=90% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk109">ABOUT THIS PROSPECTUS</a></FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>2</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk110">OUR COMPANY</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>2</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk111">RISK FACTORS</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>2</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk112">SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>2</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk113">USE OF PROCEEDS</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>3</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk114">THE SECURITIES WE MAY OFFER</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>3</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk115">DESCRIPTION OF COMMON STOCK</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>3</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk116">DESCRIPTION OF WARRANTS</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>3</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk117">PLAN OF DISTRIBUTION</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>5</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk118">VALIDITY OF SECURITIES</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>6</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk119">EXPERTS</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>6</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk120">WHERE YOU CAN FIND MORE INFORMATION</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>6</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk121">INCORPORATION OF DOCUMENTS BY REFERENCE</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>7</FONT></TD></TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>You should rely only on the
information contained in this prospectus and the documents incorporated by reference in
this prospectus or to which we have referred you. We have not authorized anyone to provide
you with different information. If anyone provides you with different or inconsistent
information, you should not rely on it. This prospectus does not constitute an offer to
sell, or a solicitation of an offer to purchase, the securities offered by this prospectus
in any jurisdiction to or from any person to whom or from whom it is unlawful to make such
offer or solicitation of an offer in such jurisdiction. You should not assume that the
information contained in this prospectus or any document incorporated by reference is
accurate as of any date other than the date on the front cover of the applicable document.
Neither the delivery of this prospectus nor any distribution of securities pursuant to
this prospectus shall, under any circumstances, create any implication that there has been
no change in the information set forth or incorporated by reference into this prospectus
or in our affairs since the date of this prospectus. Our business, financial condition,
results of operations and prospects may have changed since that date. </FONT></P>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<a name=zk109></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ABOUT THIS PROSPECTUS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This prospectus is part of a
registration statement that we filed with the Securities and Exchange Commission using a
&#147;shelf&#148; registration process. Under this shelf registration process, we may,
from time to time, sell any combination of the securities described in this prospectus in
one or more offerings up to a total dollar amount of $15,000,000. This prospectus
describes the securities we may offer and the general manner in which our securities may
be offered by this prospectus. Each time we sell securities, we will provide a prospectus
supplement that will contain specific information about the terms of that offering. We may
also add, update or change in the prospectus supplement any of the information contained
in this prospectus. To the extent there is a conflict between the information contained in
this prospectus and the prospectus supplement, you should rely on the information in the
prospectus supplement, provided that if any statement in one of these documents is
inconsistent with a statement in another document having a later date&nbsp;&#150; for
example, a document incorporated by reference in this prospectus or any prospectus
supplement&nbsp;&#150; the statement in the document having the later date modifies or
supersedes the earlier statement. </FONT></P>

<a name=zk110></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OUR COMPANY </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We are engaged in the business of the
development of mesenchymal and stem cell production technology and the commercialization
of cell therapy products. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>From May 2003 until March 2006, our
business was focused on the development of stem cell production technology. Originally,
our plan was to develop that technology to the point where we could license it to medical
scientists and practitioners for their use in producing cell therapy products for sale in
the marketplace. On March 6, 2006, we announced that our company was taking a new
direction. Instead of looking to license our stem cell production technology, we decided
to focus on developing the technology with the goal of producing cell therapy products
ourselves for sale in the marketplace. On July 5, 2006 and October 16, 2006, we announced
that our subsidiary, Pluristem Ltd., achieved a breakthrough in our preclinical study of
bone marrow transplantation: The preclinical study showed that by adding PLX-I (PLacenta
eXpanded cells) to Umbilical cord blood (UCB) stem cells during bone marrow
transplantation (BMT), hematopoietic stem cell engraftment in mice showed up to a 500%
increase in engraftment after irradiation and chemotherapy. On January 8, 2008, we
announced that we achieved favorable results in demonstrating a revascularization effect
after using our propriety PLX-PAD cells for the treatment of limb ischemia associated with
peripheral artery disease (PAD). On April 7, 2008, we announced that the results from
Fraunhofer Institute&#146;s additional pre-clinical study utilizing our proprietary
PLacental eXpanded (PLX) cells in treating ischemic stroke showed statistical significance
utilizing functional as well as anatomical endpoints. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On November 23, 2007, we changed our
name to Pluristem Therapeutics Inc. On November 26, 2007, we effected a one for two
hundred reverse stock split. Accordingly, all references to number of shares, common stock
and per share data have been adjusted to reflect the stock split on a retroactive basis. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On December 10, 2007, our shares of
common stock began trading on the NASDAQ Capital Market under the symbol &#147;PSTI.&#148;
The shares were previously traded on the OTC Bulletin Board under the trading symbol
&#147;PLRS.OB&#148;. On May 7, 2007, our shares also began trading on Europe&#146;s
Frankfurt Stock Exchange, under the symbol &#147;PJT.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effective on June 4, 2008, our
authorized number of shares of our common stock was increased from 7,000,000 shares to
30,000,000 shares. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our executive offices are located at
MATAM Advanced Technology Park, Building No. 20, Haifa, Israel, our telephone number is
011 972 74 710 7171 and our website address is <U>www.pluristem.com</U> . The information
on our website is not incorporated by reference in this prospectus and should not be
considered to be part of this prospectus. Our website address is included in this
prospectus as an inactive technical reference only. Our name and logo and the names of our
products are our trademarks or registered trademarks. Unless the context otherwise
requires, references in this prospectus to &#147;Pluristem,&#148;&#147;we,&#148;
&#147;us,&#148; and &#147;our&#148; refer to Pluristem Therapeutics Inc. and it
subsidiaries as required by the context. </FONT></P>

<a name=zk111></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RISK FACTORS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>An investment in our securities
involves significant risks. You should carefully consider the risk factors contained in
any prospectus supplement and in our filings with the Securities and Exchange Commission,
as well as all of the information contained in this prospectus, any prospectus supplement
and the documents incorporated by reference in this prospectus, before you decide to
invest in our securities. The risks and uncertainties we have described are not the only
ones we face. Additional risks and uncertainties not presently known to us or that we
currently deem immaterial may also affect our operations. </FONT></P>

<a name=zk112></a>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SPECIAL
NOTE&nbsp;REGARDING FORWARD-LOOKING INFORMATION </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This prospectus, any prospectus
supplement and the documents we incorporate by reference in this prospectus contain
forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995 and other Federal securities laws. All statements, other than statements of
historical fact, that we include in this prospectus, any prospectus supplement and in the
documents we incorporate by reference in this prospectus, may be deemed forward-looking
statements for purposes of the Securities Act of 1933, or the Securities Act, and the
Securities Exchange Act of 1934, or the Exchange Act. We use the words
&#147;anticipate,&#148; &#147;believe,&#148; &#147;estimate,&#148; &#147;expect,&#148;
&#147;intend,&#148; &#147;may,&#148; &#147;plan,&#148; &#147;project,&#148;
&#147;will,&#148; &#147;would&#148; and similar expressions to identify forward-looking
statements, although not all forward-looking statements contain these identifying words.
We cannot guarantee that we actually will achieve the plans, intentions or expectations
disclosed in our forward-looking statements and, accordingly, you should not place undue
reliance on our forward-looking statements. There are a number of important factors that
could cause actual results or events to differ materially from the forward-looking
statements that we make, including the factors included in the documents we incorporate by
reference in this prospectus. You should read these factors and the other cautionary
statements made in the documents we incorporate by reference as being applicable to all
related forward-looking statements wherever they appear in this prospectus, any prospectus
supplement and any document incorporated by reference. We caution you that, except as
otherwise required by law, we do not undertake any obligation to update forward-looking
statements we make. </FONT></P>

<p align=center>
<font size=2>2</font></p>
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<page>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>USE OF PROCEEDS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unless we otherwise indicate in the
applicable prospectus supplement, we currently intend to use the net proceeds from the
sale of the securities for research and product development activities, and for working
capital and other general corporate purposes. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We may set forth additional
information on the use of net proceeds from the sale of securities we offer under this
prospectus in a prospectus supplement relating to the specific offering. Pending the
application of the net proceeds, we intend to invest the net proceeds in investment-grade,
interest-bearing securities. </FONT></P>

<a name=zk114></a>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE SECURITIES WE MAY
OFFER </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The descriptions of the securities
contained in this prospectus, together with the applicable prospectus supplement,
summarize the material terms and provisions of the various types of securities that we may
offer. We will describe in the applicable prospectus supplement relating to any securities
the particular terms of the securities offered by that prospectus supplement. If we so
indicate in the applicable prospectus supplement, the terms of the securities may differ
from the terms we have summarized below. We may also include in the prospectus supplement
information, where applicable, about material United States federal income tax
consequences relating to the securities, and the securities exchange or market, if any, on
which the securities will be listed. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We may sell from time to time, in one
or more offerings, one or more of the following securities: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>common
stock; and</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>warrants
to purchase common stock.</FONT></TD>
</TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The total initial offering price of
all securities that we may issue in these offerings will not exceed $15,000,000. </FONT></P>

<a name=zk115></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DESCRIPTION OF COMMON
STOCK </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For a description of the material
terms and provisions of our common stock and any other class of our securities which
qualifies or limits our common stock, please see the applicable prospectus supplement, as
well as the description of our capital stock in our Registration Statement on
Form&nbsp;8-A, as amended, which is incorporated by reference in this prospectus. </FONT></P>

<a name=zk116></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DESCRIPTION OF WARRANTS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following description, together
with the additional information we may include in any applicable prospectus supplement,
summarizes the material terms and provisions of the warrants that we may offer under this
prospectus and the related warrant agreements and warrant certificates. While the terms
summarized below will apply generally to any warrants that we may offer, we will describe
the particular terms of any series of warrants in more detail in the applicable prospectus
supplement. If we so indicate in a prospectus supplement, the terms of any warrants
offered under that prospectus supplement may differ from the terms we describe below.
Specific warrant agreements will contain additional important terms and provisions and
will be incorporated by reference as an exhibit to the registration statement. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>General</U> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We may issue warrants for the
purchase of common stock in one or more series. We may issue warrants independently or
together with common stock, and the warrants may be attached to or separate from the
common stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We will evidence each series of
warrants by warrant certificates that we will issue under a separate agreement or by
warrant agreements that we will enter into directly with the purchasers of the warrants.
If we evidence warrants by warrant certificates, we will enter into a warrant agreement
with a warrant agent. We will indicate the name and address of the warrant agent, if any,
in the applicable prospectus supplement relating to a particular series of warrants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We will describe in the applicable
prospectus supplement the terms of the series of warrants, including: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
offering price and aggregate number of warrants offered;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
currency for which the warrants may be purchased or exercised;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>if
applicable, the terms of the common stock with which the warrants are issued and the
number of warrants issued with such                common stock;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>if
applicable, the date on and after which the warrants and the related common stock will be
separately transferable;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
number of shares of common stock purchasable upon the exercise of one warrant and the
price at which these shares may be                purchased upon such exercise;</FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
manner in which the warrants may be exercised, which may include by cashless exercise;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
effect of any merger, consolidation, sale or other disposition of our business on the
warrant agreement and the warrants; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
terms of any rights to redeem or call the warrants;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
provisions for changes to or adjustments in the exercise price or number of shares of
common stock issuable upon                exercise of the warrants;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
dates on which the right to exercise the warrants will commence and expire;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
manner in which the warrant agreement and warrants may be modified;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
material United States federal income tax consequences of holding or exercising the
warrants;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
terms of the common stock issuable upon exercise of the warrants; and</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
other specific terms, preferences, rights or limitations of or restrictions on the
warrants.</FONT></TD>
</TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Before exercising their warrants,
holders of warrants will not have any of the rights of holders of the common stock
purchasable upon such exercise, including the right to receive dividends, if any, or
payments upon our liquidation, dissolution or winding up or to exercise voting rights, if
any. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Exercise of Warrants</U> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Each warrant will entitle the holder
to purchase the number of shares of common stock that we specify in the applicable
prospectus supplement at the exercise price that we describe in the applicable prospectus
supplement. Unless we otherwise specify in the applicable prospectus supplement, holders
of the warrants may exercise the warrants at any time up to 5:00&nbsp;P.M., Eastern U.S.
time, on the expiration date that we set forth in the applicable prospectus supplement.
After the close of business on the expiration date, unexercised warrants will become void. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Holders of the warrants may exercise
the warrants by delivering to the warrant agent or us the warrant certificate or warrant
agreement representing the warrants to be exercised together with specified information,
and by paying the required amount to the warrant agent or us in immediately available
funds, as provided in the applicable prospectus supplement. We will set forth on the
reverse side of the warrant certificate or in the warrant agreement and in the applicable
prospectus supplement the information that the holder of the warrant will be required to
deliver to the warrant agent or us in connection with such exercise. Certain of the
warrants may entitle the holders thereof to &#147;cashless exercise&#148; under certain
circumstances. This option entitles the warrant holder to elect to receive fewer shares of
common stock without paying the cash exercise price.&nbsp;&nbsp;The number of shares to be
issued would be determined by a formula based on the total number of shares to which the
warrant holder is entitled, the market price of the common stock on the date of exercise
or the days prior to the exercise and the applicable exercise price of the warrants. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upon receipt of the required payment,
if need to, and the warrant certificate or the warrant agreement, as applicable, properly
completed and duly executed at the corporate trust office of the warrant agent, if any, at
our offices or at any other office indicated in the applicable prospectus supplement, we
will issue and deliver the common stock purchasable upon such exercise. If fewer than all
of the warrants represented by the warrant certificate or warrant agreement are exercised,
then we will issue a new warrant certificate or warrant agreement for the remaining amount
of warrants. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Enforceability of Rights
by Holders of Warrant</U>s </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If we appoint a warrant agent, any
warrant agent will act solely as our agent under the applicable warrant agreement and will
not assume any obligation or relationship of agency or trust with any holder of any
warrant. A single bank or trust company may act as warrant agent for more than one issue
of warrants. A warrant agent will have no duty or responsibility in case of any default by
us under the applicable warrant agreement or warrant, including any duty or responsibility
to initiate any proceedings at law or otherwise, or to make any demand upon us. Any holder
of a warrant may, without the consent of the related warrant agent or the holder of any
other warrant, enforce by appropriate legal action its right to exercise, and receive the
securities purchasable upon exercise of, its warrants. </FONT></P>

<p align=center>
<font size=2>4</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<a name=zk117></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PLAN OF DISTRIBUTION </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We may sell the securities being
offered hereby in one or more of the following ways from time to time: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>through
agents to the public or to investors;</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to
one or more underwriters for resale to the public or to investors;</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>in
"at the market offerings," within the meaning of Rule 415(a)(4) of the Securities Act, to
or through a market maker or                into an existing trading market, on an
exchange or otherwise;</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>directly
to investors in privately negotiated transactions;</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>directly
to a purchaser pursuant to what is known as an "equity line of credit" as described
below; or</FONT></TD>
</TR>
</TABLE>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>through
a combination of these methods of sale.</FONT></TD>
</TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The securities that we distribute by
any of these methods may be sold, in one or more transactions, at: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a
fixed price or prices, which may be changed;</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>market
prices prevailing at the time of sale;</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>prices
related to prevailing market prices; or</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>negotiated
prices.</FONT></TD>
</TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The accompanying prospectus
supplement will describe the terms of the offering of our securities, including: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
name or names of any agents or underwriters;</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
securities exchange or market on which the common stock may be listed;</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
purchase price and commission, if any, to be paid in connection with the sale of the
securities being offered and the                proceeds we will receive from the sale;</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
over-allotment options pursuant to which underwriters may purchase additional securities
from us;</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
underwriting discounts or agency fees and other items constituting underwriters' or
agents' compensation;</FONT></TD>
</TR>
</TABLE>




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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
public offering price; and</FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
discounts or concessions allowed or reallowed or paid to dealers.</FONT></TD>
</TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If underwriters are used in the sale,
they will acquire the securities for their own account and may resell the securities from
time to time in one or more transactions, including negotiated transactions, at a fixed
public offering price or at varying prices determined at the time of the sale. The
obligations of the underwriters to purchase the securities will be subject to the
conditions set forth in the applicable underwriting agreement. We may offer the securities
to the public through underwriting syndicates represented by managing underwriters or by
underwriters without a syndicate. Subject to certain conditions, the underwriters will be
obligated to purchase all the securities offered by the prospectus supplement. We may
change from time to time the public offering price and any discounts or concessions
allowed or reallowed or paid to dealers. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We may also sell securities pursuant
to an &#147;equity line of credit&#148;. In such event, we will enter into a common stock
purchase agreement with the purchaser to be named therein, which will be described in a
Current Report on Form 8-K that we will file with the SEC. In that Form 8-K, we will
describe the total amount of money that we may require the purchaser to invest under the
purchase agreement and the other terms of purchase, and any rights that the purchaser is
granted to purchase securities from us. In addition to our issuance of shares of common
stock to the equity line purchaser pursuant to the purchase agreement, this prospectus
(and the applicable prospectus supplement or post-effective amendment) also covers the
resale of those shares from time to time by the equity line purchaser to the public. The
equity line purchaser will be considered an &#147;underwriter&#148; within the meaning of
Section 2(a)(11) of the Securities Act. Its resales may be effected through a number of
methods, including without limitation, ordinary brokerage transactions and transactions in
which the broker solicits purchasers and block trades in which the broker or dealer so
engaged will attempt to sell the shares as agent, but may position and resell a portion of
the block as principal to facilitate the transaction. The equity line purchaser will be
bound by various anti-manipulation rules of the SEC and may not, for example, engage in
any stabilization activity in connection with its resales of our securities and may not
bid for or purchase any of our securities or attempt to induce any person to purchase any
of our securities other than as permitted under the Exchange Act. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We may sell our securities directly
or through agents we designate from time to time. We will name any agent involved in the
offering and sale of our common stock, and we will describe any commissions we will pay
the agent in the prospectus supplement. Unless the prospectus supplement states otherwise,
our agent will act on a best-efforts basis for the period of its appointment. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We may provide underwriters and
agents with indemnification against civil liabilities related to this offering, including
liabilities under the Securities Act, or contribution with respect to payments that the
underwriters or agents may make with respect to these liabilities. Underwriters and agents
may engage in transactions with, or perform services for, us in the ordinary course of
business. We will describe such relationships in the prospectus supplement naming the
underwriter or agent and the nature of any such relationship. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rules of the Securities and Exchange
Commission may limit the ability of any underwriters to bid for or purchase securities
before the distribution of the shares of common stock is completed. However, underwriters
may engage in the following activities in accordance with the rules: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings">&#151;</font></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Stabilizing
transactions</I> &#150;&nbsp;Underwriters may make bids or purchases for the purpose of
pegging, fixing or maintaining the price of the shares, so long as stabilizing bids do
not exceed a specified maximum. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>5</font></p>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings">&#151;</font></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Over-allotments
and syndicate covering transactions</I> &#150;&nbsp;Underwriters may sell more shares of
our common stock than the number of shares that they have committed to purchase in any
underwritten offering. This over-allotment creates a short position for the underwriters.
This short position may involve either &#147;covered&#148;short sales or &#147;naked&#148; short
sales. Covered short sales are short sales made in an amount not greater than the
underwriters&#146; over-allotment option to purchase additional shares in any
underwritten offering. The underwriters may close out any covered short position either
by exercising their over-allotment option or by purchasing shares in the open market. To
determine how they will close the covered short position, the underwriters will consider,
among other things, the price of shares available for purchase in the open market, as
compared to the price at which they may purchase shares through the over-allotment
option. Naked short sales are short sales in excess of the over-allotment option. The
underwriters must close out any naked position by purchasing shares in the open market. A
naked short position is more likely to be created if the underwriters are concerned that,
in the open market after pricing, there may be downward pressure on the price of the
shares that could adversely affect investors who purchase shares in the offering. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings">&#151;</font></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Penalty
bids</I> &#150;&nbsp;If underwriters purchase shares in the open market in a stabilizing
transaction or syndicate covering transaction, they may reclaim a selling concession from
other underwriters and selling group members who sold those shares as part of the
offering. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Similar to other purchase
transactions, an underwriter&#146;s purchases to cover the syndicate short sales or to
stabilize the market price of our common stock may have the effect of raising or
maintaining the market price of our common stock or preventing or mitigating a decline in
the market price of our common stock. As a result, the price of the shares of our common
stock may be higher than the price that might otherwise exist in the open market. The
imposition of a penalty bid might also have an effect on the price of shares if it
discourages resales of the shares. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If commenced, the underwriters may
discontinue any of these activities at any time. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our common stock is traded on the
NASDAQ Capital Market. One or more underwriters may make a market in our common stock, but
the underwriters will not be obligated to do so and may discontinue market making at any
time without notice. We cannot give any assurance as to liquidity of the trading market
for our common stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any underwriters who are qualified
market makers on the NASDAQ Capital Market may engage in passive market making
transactions in the common stock in accordance with Rule&nbsp;103 of Regulation&nbsp;M,
during the business day prior to the pricing of the offering, before the commencement of
offers or sales of the common stock. Passive market makers must comply with applicable
volume and price limitations and must be identified as passive market makers. In general,
a passive market maker must display its bid at a price not in excess of the highest
independent bid for such security; if all independent bids are lowered below the passive
market maker&#146;s bid, however, the passive market maker&#146;s bid must then be lowered
when certain purchase limits are exceeded. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In compliance with guidelines of the
Financial Industry Regulatory Authority, or FINRA, the maximum commission or discount to
be received by any FINRA member or independent broker dealer may not exceed 8% of the
aggregate amount of the securities offered pursuant to this prospectus and any applicable
prospectus supplement. </FONT></P>

<a name=zk118></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>VALIDITY OF SECURITIES </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The validity of the securities
offered hereby will be passed upon for us by Zysman, Aharoni, Gayer &amp; Co. /Sullivan
&amp; Worcester, LLP, Boston, Massachusetts. </FONT></P>

<a name=zk119></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXPERTS </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The financial statements of Pluristem
Therapeutics Inc. appearing in its Annual Report (Form&nbsp;10-KSB) for the year ended
June 30, 2007 have been audited by Kost Forer Gabbay &amp; Kasierer A member of Ernst
&amp; Young Global, independent registered public accounting firm, as set forth in their
report thereon, included therein, and incorporated herein by reference. Such financial
statements are incorporated herein by reference in reliance upon such report given on the
authority of such firm as experts in accounting and auditing. </FONT></P>


<a name=zk120></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WHERE YOU CAN FIND MORE
INFORMATION </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We file reports, proxy statements and
other documents with the Securities and Exchange Commission. You may read and copy any
document we file with the SEC at the SEC&#146;s Public Reference Room at
100&nbsp;F&nbsp;Street, N.E., Room&nbsp;1580, Washington,&nbsp;D.C. 20549. Please call the
SEC at 1-800-SEC-0330 for further information on the public reference room. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The SEC also maintains a website, the
address of which is www.sec.gov. That site also contains our annual, quarterly and current
reports, proxy statements, information statements and other information. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have filed this prospectus with
the SEC as part of a registration statement on Form&nbsp;S-3 under the Securities Act.
This prospectus does not contain all of the information set forth in the registration
statement because some parts of the registration statement are omitted in accordance with
the rules and regulations of the SEC. You can obtain a copy of the registration statement
from the SEC at the address listed above or from the SEC&#146;s website. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We also maintain a website at
www.pluristem.com, through which you can access our SEC filings. The information set forth
on our website is not part of this prospectus. </FONT></P>

<p align=center>
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<a name=zk121></a>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INCORPORATION OF
DOCUMENTS BY REFERENCE </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We are &#147;incorporating by
reference&#148; certain documents we file with the SEC, which means that we can disclose
important information to you by referring you to those documents. The information in the
documents incorporated by reference is considered to be part of this prospectus.
Statements contained in documents that we file with the SEC and that are incorporated by
reference in this prospectus will automatically update and supersede information contained
in this prospectus, including information in previously filed documents or reports that
have been incorporated by reference in this prospectus, to the extent the new information
differs from or is inconsistent with the old information. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have filed or may file the
following documents with the SEC. These documents are incorporated herein by reference as
of their respective dates of filing: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
Annual Report on Form 10-KSB for the year ended June 30, 2007;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
Quarterly Report on Form 10-QSB for the quarter ended March 31, 2008;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
Quarterly Report on Form 10-QSB for the quarter ended December 31, 2007;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
Quarterly Report on Form 10-QSB for the quarter ended September 30, 2007;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>       <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
Current Report on Form 8-K, as filed with the SEC on April 10, 2008;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
Current Report on Form 8-K, as filed with the SEC on December 7, 2007;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
Current Report on Form 8-K, as filed with the SEC on November 26, 2007;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
Current Report on Form 8-K, as filed with the SEC on November 9, 2007;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
Current Report on Form 8-K, as filed with the SEC on November 6, 2007;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
Current Report on Form 8-K, as filed with the SEC on October 12, 2007;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
Current Report on Form 8-K, as filed with the SEC on September 5, 2007 ;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>        <FONT size="2" face="Wingdings">&#151;</font> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
description of our common stock contained in our Registration Statement on Form 8-A filed
with the SEC, as amended; and</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><FONT size="2" face="Wingdings">&#151;</font></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All
documents filed by us pursuant to Section&nbsp;13(a), 13(c), 14 or 15(d) of the Exchange
Act (1)&nbsp;after the date of the filing of this registration statement and prior to its
effectiveness and (2)&nbsp;until all of the common stock to which this prospectus relates
has been sold or the offering is otherwise terminated, except in each case for
information contained in any such filing where we indicate that such information is being
furnished and is not to be considered &#147;filed&#148; under the Exchange Act, will be
deemed to be incorporated by reference in this prospectus and the accompanying prospectus
supplement and to be a part hereof from the date of filing of such documents. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We will provide a copy of the
documents we incorporate by reference, at no cost, to any person who receives this
prospectus. To request a copy of any or all of these documents, you should write or
telephone us at MATAM Advanced Technology Park, Building No. 20, Haifa, 31905, Israel,
Attention: Yaky Yanay, (+972) 74 710 7171. </FONT></P>

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