Novocell Receives a Disease Team Award for $20 Million from the California Institute for Regenerative Medicine to Develop a Stem Cell Therapy for the Treatment of Diabetes

Novocell Receives a Disease Team Award for $20 Million from the California
Institute for Regenerative Medicine to Develop a Stem Cell Therapy for the
Treatment of Diabetes

SAN DIEGO, Oct. 28 /PRNewswire/ -- Novocell, Inc., a preclinical stage
diabetes company, today announced that it will receive a Disease Team award
totaling $20 million from the California Institute for Regenerative Medicine
(CIRM). The Disease Team includes a group of scientists at the University of
California, San Francisco (UCSF), led by Dr. Jeff Bluestone, which is
contracted to receive $2.8 million. The funding will advance Novocell's
development of a first in kind cellular therapy for the treatment of diabetes.

Novocell's proposal was selected for funding by CIRM's governing board, the
Independent Citizens Oversight Committee (ICOC), with advisement from the
Scientific and Medical Research Funding Working Group. "Novocell's proposal
addresses an unmet medical need, contains compelling preliminary data in
animals and is backed by a high quality team of scientists. It is the
expectation that all Disease Team award recipients will be entering the clinic
after the funding period. Novocell's systematic approach is expected to do
just that, and as a consequence, CIRM and the ICOC decided to fund Novocell's
efforts," said Allan Trounson, President of CIRM.

Nearly 25 million people in the United States are afflicted with diabetes.
Many diabetics have loss of insulin secreting cells resulting in poor blood
sugar regulation. Novocell is developing an alternative to insulin injections
by producing cells that will secrete insulin in patients similar to the cells
that were lost. "We thank California voters for approving Proposition 71, and
CIRM and the ICOC for their support of our science and scientists. This award
will substantially accelerate our progress, which will benefit millions of
Americans," said John West, President & Chief Executive Officer of Novocell.

"We are grateful for the confidence in our scientific team and the continuing
financial support of our development efforts. The successful development of a
stem cell therapy to alleviate the suffering of millions of Americans
afflicted with diabetes is our passion. With the funding assistance from the
state of California we can deliver the first cellular treatment for diabetes,"
said Emmanuel Baetge, Ph.D., Principal Investigator & Chief Scientific Officer
of Novocell.

About CIRM
CIRM was established in November, 2004 with the passage of Proposition 71, the
California Stem Cell Research and Cures Act. The statewide ballot measure,
which provided $3 billion in funding for stem cell research at California
universities and research institutions, was overwhelmingly approved by voters,
and called for the establishment of an entity to make grants and provide loans
for stem cell research, research facilities, and other vital research
opportunities. For more information, please visit www.cirm.ca.gov.

About Novocell
Novocell is a preclinical therapeutic company focused on diabetes. Our
therapy is based on the encapsulation and implantation of pancreatic beta cell
progenitors (Pro-Islet-1) derived from human stem cells which secrete insulin
in patients. Our goal is that Pro-Islet-1 can free both Type 1 and Type 2
diabetic patients from insulin dependence on a long term basis, while reducing
or eliminating hypoglycemic, microvasculature and weight-mediated
cardiovascular complications. Novocell is a private company headquartered in
San Diego, California, with additional operations in Athens, Georgia.

SOURCE Novocell, Inc.

Liz Bui, J.D. Ph.D., Director of Intellectual Property & Corporate Development
of Novocell, +1-858-909-5309, lbui@novocell.com