March 24, 2008 13:38 ET

Medistem Enters Into Collaborative Agreement With TriCell

Agreement Provides Cash and Equity to Medistem and Opens the Door to Collaborative Opportunities in Stem Cell Research

SCOTTSDALE, AZ--(Marketwire - March 24, 2008) - Medistem Laboratories, Inc. (OTCBB: MDSM) announced today that it has entered into a licensing agreement with TriCell, an Indian biotechnology company specializing in stem cell banking, and research in the areas of hematological and oncological disorders.

Under the terms of the agreement, which is subject to Indian government approval, Medistem Laboratories will receive cash and equity in TriCell. TriCell will receive access to Medistem's intellectual property portfolio along with its know-how in the area of stem cell culturing and expansion for use in India and certain jurisdictions.

"This transaction positions Medistem to derive value from its IP assets while establishing a powerful collaborative base in India," stated Thomas Ichim, CEO of Medistem. He continued, "TriCell's access to significant medical facilities including a multi-specialty hospital that treats 3,000 patients daily, provides a possible venue for performance of GCP-trials on Medistem's various pipeline candidates."

S. Abhaya Kumar, Vice Chairman of TriCell, commented, "Few companies in this space can claim the publications and recognitions Medistem has achieved, most recently receiving the 'Top Publication of 2007' by BioMed Central. We are proud to enter this relationship with a company of this caliber."

About Medistem Laboratories

Medistem Laboratories is a biotechnology company founded to develop and commercialize technologies related to adult stem cell extraction, manipulation, and use for treating inflammatory and degenerative diseases. The company's lead product, the endometrial regenerative cell (ERC), is a "universal donor" stem cell derived from the menstrual blood that possesses the ability to differentiate into nine tissue types, produce large quantities of growth factors, and a large proliferative capacity. Due to Medistem's relationships and collaborative efforts with respected institutions, Medistem believes it is well positioned to be a leading developer of adult stem cell products.

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