SOURCE: Medistem Laboratories

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.

Cautionary Statement

This document does not constitute an offer to sell or a solicitation of an offer to buy any of our securities. This document contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include projections of matters that affect revenue, the ability to develop or license certain technologies and receive associated licensing fees; operating expenses or net earnings; projections of capital expenditures; projections of growth; hiring plans; plans for future operations; financing needs or plans; plans relating to the company's products and services; and assumptions relating to the foregoing.

Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information.

Some of the important factors that could cause the company's actual results to differ materially from those projected in forward-looking statements made by the company include, but are not limited to, the following: the company's ability to anticipate future license fees, technology development limitations, intense competition, risk of business interruption, management of rapid growth, need for additional financing, regulatory approvals and requirements, dependence on key personnel and research, management and other administrative costs.

These factors are discussed in greater detail in the company's quarterly and annual periodic reports, all as filed with the Securities and Exchange Commission.

Contact Information