MediStem, Inc. (Formerly known as Medistem Laboratories, Inc.) Files Form 15

SAN DIEGO, CA and PHOENIX, AZ--(Marketwire - January 21, 2009) - Medistem Inc. (OTCBB: MEDS) announced today that it has filed a Form 15 with the Securities and Exchange Commission. As such, it expects to cease filing reports with the Securities and Exchange Commission effective immediately.

By ceasing to file reports, the company's common stock will no longer qualify for trading on the OTCBB. However, Medistem expects that its common stock will continue to trade on the Pink Sheet system.

As discussed in its November 25, 2008 press release, the company expects to benefit from this decision through significant savings on legal, accounting, compliance and other costs associated with being a reporting company while simultaneously allowing it to focus on its core business activities, particularly its scientific research and development. Medistem stated that its management has determined that the company currently is deriving minimal benefits from being a reporting company due to low trading volume and a depressed market price that management believes does not accurately reflect the true value of the company's business. The company noted that preparing and filing SEC reports, as well as investor relations activities, required a disproportionate amount of financial resources and management effort that now can be focused solely on scientific research and development.

About Medistem Inc.

Medistem Inc. 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. A peer reviewed publication describing this novel cell type may be found at http://www.translational-medicine.com/content/5/1/57. The company is currently focusing on use of endometrial regenerative cells for treatment of critical limb ischemia, an advanced form of peripheral artery disease.

Cautionary Statement

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of our securities. This press release may contain 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. 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.

Factors which may cause actual results to differ from our forward-looking statements are discussed in our Form 10-K for the year ended December 31, 2007 as filed with the Securities and Exchange Commission.