SOURCE: Medistem Laboratories

March 27, 2007 08:05 ET

Medistem Commences Pre-Clinical Research With Lawson Health Research Institute in London, Ontario in the Treatment of Autoimmune Diseases

Work Seeks to Position Tolerostem™ Platform for IND Filing and FDA Trials

SCOTTSDALE, AZ -- (MARKET WIRE) -- March 27, 2007 -- Medistem Laboratories, Inc. (OTCBB: MDSM) (FRANKFURT: S2U) announced today that it is collaborating with Dr. Hao Wang, researcher at Lawson Health Research Institute and Assistant Professor, Department of Surgery at The University of Western Ontario in London, Ontario, to conduct pre-clinical research on Medistem's proprietary platform Tolerostem™. Subject to positive research results Medistem plans to submit an IND application to the FDA.

The Tolerostem™ proprietary technology is designed to treat autoimmune diseases through reprogramming components of the immune system to stop attacking healthy tissue, while maintaining their role in fighting external pathogens. The Tolerostem™ platform could have a broad number of uses for the marketplace, ranging from multiple sclerosis, to rheumatoid arthritis, to ulcerative colitis. The technology may also be applicable to inhibiting rejection of organ transplants through a process called tolerance induction.

Autoimmune diseases are the third most common type of disease behind heart disease and cancer in the United States. It is estimated that autoimmune diseases affect between 5-8% of the U.S. population or 14-22 million people. These diseases have shown the ability to affect nearly every area of the body including the endocrine system, connective tissue, gastrointestinal tract, heart, skin, and kidneys.

The Director of the Autoimmune Research Center at John Hopkins University has noted that over 15 diseases are known to be the direct result of autoimmune responses with circumstantial data suggesting greater than 80 conditions. And perhaps of great significance is the fact that conservative figures show 78.8% of those who have an autoimmune disease are women (Source: Fairweather D, Rose NR available at http://www.cdc.gov/ncidod/EID/vol10no11/04-0367.htm)

"Specific modulation of the immune system using cellular therapies offers the possibility of treating numerous diseases without the adverse effects associated with immune suppression. Currently used therapies for autoimmune diseases and transplant rejection, while inhibiting inflammatory processes can also cause severe side effects ranging from kidney failure to increased opportunistic infections," said Neil Riordan, PhD, Chairman and CEO of Medistem. "We are privileged to have recruited the expertise of Dr. Wang and his internationally renowned team to help Medistem develop adult stem cell-based immunological interventions," he added. "Dr. Wang's group is one of North America's leaders in understanding the mechanisms of tolerance induction, which is one of the key processes the Tolerostem platform is based upon."

"We are committed to working with Medistem in what is a very exciting area of medicine," said Dr. Wang. "Autoimmune diseases are known to influence the onset of many other diseases, and we hope that by combining our strength in the world of tolerance induction with Medistem's strong understanding of immunology, we'll begin to make headway in an area of disease that affects millions of people; most notably women."

About Medistem Laboratories, Inc.

Medistem Laboratories (www.medisteminc.com) is an innovative biotechnology company committed to the creation and commercialization of advanced medical therapies based on non-controversial adult stem cells. Medistem's corporate mission is to transform these stem cells into valuable medical treatments. The Company's business strategy calls for the licensing of a series of clinics and laboratories around the world to deliver unprecedented, next-generation cell therapies to millions of patients while seeking to commercialize products in the U.S. market. Clinic treatments use proprietary technology and cells sourced from umbilical cords, fat, bone marrow, and muscle for the treatment of cerebral palsy, stroke, cardiovascular disease and orthopedic diseases. Medistem believes it may hold a substantial competitive edge in the worldwide emerging market for stem cell-sourced medical solutions, positioning it to become a leading global provider of stem cell treatments on a fee-for-service basis, while accumulating intellectual property based on clinical and laboratory findings.

About Lawson Health Research Institute

The Lawson Health Research Institute is the research institute of London Health Sciences Centre and St. Joseph's Health Care, London in London, Ontario. It is one of the largest hospital-based research institutes in Canada, attracting over $50 million each year in research funding. The institute is dedicated to helping people live healthier lives by advancing knowledge of how to prevent, diagnose and treat disease.

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