SOURCE: BioStem Inc.

April 26, 2007 07:00 ET

BioStem (BTEM) Announces: Merger With Cryobanks International, Inc. Accelerates as Due Diligence for $9.0M Financing Nears Completion

ATLANTA, GA -- (MARKET WIRE) -- April 26, 2007 -- BioStem, Inc. (OTCBB: BTEM) announced today that Cryobanks International, Inc. (Cryobanks), which has agreed to be acquired by BioStem, Inc., has supplied specifically requested corporate documents and information to Samarium Technology Group, Ltd. (STG), the private investment fund, in efforts to satisfy all requirements needed to complete the $9.0M capital infusion previously announced on March 15, 2007. It is the belief of the Cryobanks organization that STG will complete the proper due diligence by mid May. STG has indicated that a meeting finalizing the due diligence process, will be scheduled within the first two weeks of May at the Altamonte Springs, Florida offices of Cryobanks International, Inc.

In the event that STG completes the due diligence to its satisfaction, and the financing closes as agreed in the previously announced letter of intent, Cryobanks will have satisfied the final remaining condition to the closing of the Agreement and Plan of Merger with BioStem, Inc. In such event, the merger would proceed to closing as originally contemplated.

"We are excited to be moving closer to what appears to be our final stages within this merger process. Cryobanks, in addition to its continued growth, has responded with a positive sense of urgency in fulfilling all requests submitted to date. We are confident that the process of obtaining the described capital infusion will be completed as anticipated, and the merger will proceed to be finalized in the very near future," stated Marc Ebersole, CEO of BioStem, Inc.

About Cryobanks:

Cryobanks International is located in Altamonte Springs, FL. The Company is a leader in the collection, processing, and banking of stem cells derived from the umbilical cord immediately after birth. The units of cord blood (CB) are processed and stored by the company for use in unrelated transplants (where the donor is a histocompatible match, but is anonymous and unrelated to the recipient) and for personal storage and use. In recent years, cord blood transplants (CBTs) have become widely recognized as a safe, effective, and in many ways preferable, alternative to bone marrow transplant. There is tremendous potential need for CBTs in the United States and worldwide. Cryobanks International is well poised to help meet that need, equipped with an inventory of over 9,700 donated cord blood units placed on international registries including The National Marrow Donor Program. For more information about Cryobanks International call 1-800-869-8608 or visit the website at

Safe Harbor Statement

There can be no assurance that the investor will approve due diligence or close the financing. The acquisition of Cryobanks International by BioStem, Inc., and the financing previously announced by Cryobanks, cannot be assured until such transactions are successfully closed, and remain conditioned upon the satisfactory completion of due diligence by the previously announced investor. This press release contains "forward-looking statements" by the Company. These statements relate to future events or financial performance and transactions, and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements, to be materially different from those contemplated by the forward-looking statements. There can be no assurance that the acquisition described herein will successfully close. We undertake no ongoing obligation, other than that imposed by law, to update these statements. Factors that could affect results, levels of activity, performance or achievements and cause them to materially differ from those contained in the forward-looking statements include the failure to complete the merger of BioStem, Inc. (OTCBB: BTEM) and Cryobanks International, Inc., which cannot be assured and which remains subject to financing conditions contained in the previously announced Agreement and Plan of Merger, the failure of the financing announced on March 15, 2007 to close, which cannot be assured and remains subject to completion of due diligence by the investor, and other factors that can be found in BioStem's filings with the Securities and Exchange Commission.

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