Gene Ray, Founder of $2.6 Billion Titan Corporation, Invests in MediStem, Inc. (Formerly known as Medistem Laboratories, Inc.)'s ERC Technology and Joins Advisory Board

SAN DIEGO, CA--(Marketwire - April 25, 2012) - Medistem Inc. (PINKSHEETS: MEDS) announced Dr. Gene Ray, founder of $2.6 Billion Titan Corp, has invested in and joined the Advisory Board for Medistem Inc. Dr. Ray is a Ph.D in Theoretical Physics, Inventor, and Entrepreneur who founded and sold Titan Corp for $2.6 Billion. Dr. Ray has a long track record of success in developing science and technology solutions for the Department of Defense and Homeland Security.

“When Dr. Ichim presented Medistem’s story to me two years ago, I was intrigued by the possibility of security and military applications of the Universal Donor adult stem cell that Medistem has discovered,” said Dr. Ray. “Since that time, Medistem has obtained FDA approval for clinical trials, numerous publications in peer-reviewed journals with top-notch Universities, and built an experienced management team. When Medistem asked for my help in assisting with strategic issues associated with value optimization and positioning in the arena of military/radioprotectant applications, I was eager to not only offer my expertise, but also to become an investor in the company.”

A native of Kentucky, Dr. Ray’s academic achievements include: B.S. in Mathematics, Physics & Chemistry, Murray State University, M.S. in Physics and Ph.D in Theoretical Physics, University of Tennessee. In addition to founding Titan Corporation, Dr. Ray has served as Executive Vice President at SAIC, Chief of the Strategic Division of the USAF and as a defense industry analyst. He is currently Chairman of the Board of Decision Sciences on the Board of Artel Corporation, and Chairman of the Cardiology Advisory Board at Scripps Clinic.

Medistem’s lead product, the Endometrial Regenerative Cell (ERC), is a stem cell that is more economical to produce, due to its unique origin, and studies suggest it is more effective than other stem cell sources. In addition to the ongoing 60 patient double-blind RECOVER-ERC clinical trial for Heart Failure and its FDA approved Critical Limb Ischemia trial, the company has been investigating possibility of using its new stem cell in protection from radiation injury. Medistem filed patent number 61/625657 covering use of ERC for radiation protection. Dr. Ray’s experience working with The Department of Defense and Homeland Security will significantly help Medistem position itself for potential military application of ERCs for radiation exposure.

“I have followed the work of Dr. Ray for some time now with great admiration,” said Thomas Ichim, CEO of Medistem. “There are few people in the world that have the unique combination of being a genuine innovator while at the same time having the talent to transform ideas into return on investment to shareholders. Dr. Ray has successfully optimized value in businesses he founded ranging from novel computer systems, to translation services, to food pasteurization, and more recently to detection of nuclear material using muon-based technology. This ability to seamlessly transverse across disciplines, while finding means of successful commercialization, suggested to us that Dr. Ray will add great value to the breadth of applications that our stem cell product may be used for.”

Commercialization of therapies for radioprotection fall under the “Animal Efficacy” rule developed by the U.S. Food and Drug Administration (FDA) in 2002 which eliminates the requirement for Phase II and Phase III clinical trials. Under this rule marketing approval is based upon efficacy studies in representative animal species and only Phase I safety data is needed. Medistem believes safety data from its current clinical trials will be sufficient in combination with animal efficacy data, thereby making the commercialization of these therapies ready for market quickly.

“We believe that Dr. Ray will be of great assistance in positioning us in the expanding market for stem cell-based therapeutics,” said Dr. Vladimir Bogin, Chairman of Medistem. “Development of novel radioprotectants in the area of cell therapy has attracted significant defense interest. The company Osiris received a $4.2 million upfront grant for large animal studies along with a procurement order of $224.7 million (http://investor.osiris.com/releasedetail.cfm?releaseid=284617) while Cellarant last year received a $153 million award for development and stockpiling of their hematopoietic progenitor cells from the Biomedical Advanced Research and Development Authority (BARDA) for use in radiation sickness (http://www.cellerant.com/pr_090110.html). We plan to seek similar contracts/grants for our ongoing work in this space.”

“It is our honor to have Dr. Ray personally invest in and join the Medistem Family. Through leveraging his experience, wisdom, and ingenuity, we are confident in accelerating the process of value optimization for our shareholders,” said Vladimir Zaharchook, Vice Chairman and Vice President of Medistem.

About Medistem Inc.
Medistem Inc. is a biotechnology company developing 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 being developed for critical limb ischemia and heart failure. A publication describing the support for use of ERC for this condition may be found at http://www.translational-medicine.com/content/pdf/1479-5876-6-45.pdf.

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.

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