International Stem Cell Corporation and Insight Bioventures India Structure Indian

Affiliate to Develop Stem Cell-Based Eye Care Therapeutics for India and Produce
Research Products for Asia

International Stem Cell Corporation (OTCBB: ISCO), www.internationalstemcell.com, and Insight

Bioventures India Private Limited (IBVI), (www.insightbioventures.in) today announced that they have
agreed on financial and structural terms for establishment of an Indian affiliate of ISCO (ISCO India). This
is an important milestone in ISCO and IBVI's goal to facilitate development and commercialization of
ISCO's stem-cell derived corneal tissue, CytoCor™, and retinal cells, CytoRet™, for treatment of blindness
and severe vision impairment as well as cell systems for drug screening in India and establish a
manufacturing base for ISCO's Lifeline Cell Technology® (Lifeline) brand of cell culture media for
commercialization throughout Asia.

IBVI is an experienced biomedical business developer that facilitated the earliest cell therapy guidelines
with the regulatory agencies in India and is well connected with Indian research and clinical centers,
corporations and government. IBVI has now partnered with MARG Group (www.marggroup.com), one
of India's fastest-growing infrastructure developers with interest in ports, airports, power plants,
commercial spaces, special export zones and other integrated infrastructures, to form 'Insight-MARG
Biofund' (Biofund). The MARG Group is the lead facilitator of Biofund, the largest of its nature in India so
far and with great possibility for being complemented by Indian government grants.

ISCO is a public US biopharmaceutical company that has pioneered the creation of a new class of stem
cells, 'human parthenogenetic stem cells', with broad therapeutic application potential and ability to
form non-rejected, immune matched therapeutic cells for millions of people. Two ISCO therapeutic
programs from this platform are CytoCor and CytoRet that offer first-in-class opportunities to treat
diseases in the front and the back of the eye where surgery and traditional small molecule and protein
therapeutics are not options. ISCO also markets and sells cell culture research products through its
Lifeline affiliate and international distributors, including in Asia. Lifeline is interested in leveraging its
expertise to develop live human cell systems for drug screening in India.

G.R.K. Reddy, MARG Group's founder and chairman, says, 'MARG Group and IBVI have formed Biofund
to leverage our resources and network of cutting-edge research and clinical institutes, corporate entities
and government agencies in India. We believe ISCO India's unique combination of novel therapeutics to
address large unmet medical needs and current and near-term research product businesses will be a
first successful Biofund investment and set the stage for subsequent ventures.'

The agreed financial and structural terms will enable formation of ISCO India as a majority-owned Indian
affiliate of ISCO, initially with laboratories in India's first clinical research facility (CRF) for stem cells and
regenerative medicine in Hyderabad with the intent to relocate to India's first platinum-rated research
center, MARG Science Park (www.margsciencepark.com), in Chennai. The park is a member of
International Association of Sciences Parks (IASP) and has established networking and alliances with
renowned institutes and organizations. The affiliate will be managed jointly by a team of experienced
managers in India and ISCO executives.

ISCO expects that manufacturing of Lifeline media products and shipping of cell products from this
central Indian base will be established to supply the growing network of Lifeline's Asian distributors with
access to leading eye care researchers, patients and regulatory agencies in India and advance the
CytoCor and CytoRet cellular ophthalmology programs towards the clinic and through safety-efficacy
trials.

Central to the operation will be continued collaboration with the ophthalmology scientists and clinicians
at Sankara Nethralaya (www.sankaranethralaya.org) in Chennai established last spring. ISCO India will
also collaborate with the Centre for Cellular and Molecular Biology (CCMB, www.ccmb.res.in) in
Hyderabad that was instrumental in the establishment of the CRF and will be a joint CRF tenant with
ISCO India. Both institutions are respected worldwide for their research in cellular science and therapy.
According to Dr. Jayaraman Packirisamy, Executive Director of IBVI, 'As we launch Biofund, ISCO India
will provide an opportunity to address large unmet medical needs while establishing an ecosystem for
the well-educated work force, world-class research and development facilities and investors in India. By
combining manufacturing of existing and development of new research products with well-defined
therapeutic development, we create an attractive risk-reward profile that is rarely seen in our industry.'
Brian Lundstrom, ISCO's President, adds 'ISCO wishes to collaborate with leading research and clinical
groups like CCMB and Sankara Nethralaya for our cellular ophthalmology programs. Moreover, we have
to manufacture our Lifeline media in Asia and ship those with our primary human cells from an Asian
location in order to supply that fast-growing market with the highest possible quality products in a cost-
efficient manner. The combination of well-proven Indian research and clinical institutes, world-class
facilities, and funding from the Insight-MARG Biofund provides ISCO with a unique way to advance our
programs and businesses without additional US capital investment or issuance of equity shares.'

ABOUT INSIGHT BIOVENTURES INDIA

Insight Bioventures Private Limited (IBVI) is the Asian member of Insight Bioventures founded in 1997 to
apply a multidimensional approach to value creation in the international life sciences community while
placing client's interests first. IBVI operates through a team of experienced associates and partners from
the pharmaceutical industry, academic research and the financial sector. The company maintains long-
standing relationships with opinion leaders in different therapeutic areas that assist in evaluation and
advancement of innovative product concepts and medical businesses. IBVI has made tissue engineering
and cell therapy a major technology focus and works with recognized leaders in these areas, e.g. Sristi
Biosciences and International Stem Cell Corporation. IBVI has partnered with strong Indian corporations
and high net worth individuals to establish a dedicated 'Biofund' to finance the best novel technologies
for Indian development and with potential to address large unmet medical needs in the Asian market.
More information is available on IBVI's website: www.insightbioventures.in.

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB)

International Stem Cell Corporation is a California-based biotechnology company focused on therapeutic
and research products. ISCO's core technology, parthenogenesis, results in creation of pluripotent
human stem cells from unfertilized oocytes (eggs). These proprietary cells avoid ethical issues associated
with use or destruction of viable human embryos and, unlike most other major stem cell types, can be
immune matched and be a source of therapeutic cells with minimal rejection after transplantation into
hundreds of millions of individuals of differing racial groups. ISCO also produces and markets specialized
cells and growth media for therapeutic research worldwide through its subsidiary, Lifeline Cell
Technology, and is developing a line of cosmeceutical products via its subsidiary, Lifeline Skin Care. ISCO
is advancing novel human stem cell-based therapies where cells have been proven to be efficacious but
traditional small molecule and protein therapeutics have not. More information is available on ISCO's
website.
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FORWARD-LOOKING STATEMENTS
Statements pertaining to anticipated developments and therapeutic applications, the potential benefits
of collaborations, affiliations, and other opportunities for the company and its subsidiaries, along with
other statements about the future expectations, beliefs, goals, plans, or prospects expressed by
management constitute forward-looking statements. Any statements that are not historical fact
(including, but not limited to statements that contain words such as "will," "believes," "plans,"
"anticipates," "expects," "estimates,") should also be considered to be forward-looking statements.
Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent
in the development and/or commercialization of potential products and the management of
collaborations, uncertainty in the results of clinical trials or regulatory approvals, need and ability to
obtain future capital, application of capital resources among competing uses, and maintenance of
intellectual property rights. Actual results may differ materially from the results anticipated in these
forward-looking statements and as such should be evaluated together with the many uncertainties that
affect the company's business, particularly those mentioned in the cautionary statements found in the
company's Securities and Exchange Commission filings. The company disclaims any intent or obligation
to update forward-looking statements.
Key Words: Stem cells, parthenogenesis, cornea, retina, research products, biotechnology, India

International Stem Cell Corporation

Brian Lundstrom, President
+1-510-220-5599
bl@intlstemcell.com
or
Insight Bioventures India Private Limited
Dr. Jayaraman Packirisamy, Executive Director
+91-98489-12260
jayaram@insightbioventures.in