ASC has executed an Agreement in Principle for the acquisition of 100% of Lifeline Cell Technology, LLC ("Lifeline"). Lifeline is developing, through the use of human stem cells, what it believes is a reliable source of cells for potential transplant therapies to treat major diseases such as diabetes, liver and retinal disease. It also plans to establish itself as the leading supplier of research products for the production of embryonic stem cells for researchers in that field.

Lifeline already has obtained exclusive licenses to leading technologies known as "Somatic Cell Nuclear Transfer" and "Parthenogenesis," and methods for production of cells free from animal protein contamination. In addition, Lifeline controls key intellectual property relating to the creation of retinal cells from embryonic stem cells. These assets are believed by Lifeline to be key elements in enabling important advances in stem cell applications. Lifeline's first target product will be human retinal cells to treat the blinding diseases of age-related macular degeneration and retinitis pigmentosa.

This investment in American Stem Cell research reinforces Regal One's intent in operating as a Business Development Corporation, as well as capitalizing on the emerging opportunities for stem cell research and related therapies sponsored by the State of California's passage of Proposition 71, passed in 2004, and setting aside $3 billion for California-based stem cell research.

This investment in American Stem Cell Corporation represents another step in Regal One's strategy of investing in young biomedical companies with the potential both of short-term gain for its shareholders and significant long-term capital appreciation.

Except for historic information contained in this release, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future to differ materially from forecasted results. These risks and uncertainties include, among other things, the Company's beliefs regarding the progress made in its discussions with the FDA, attitudes expressed by the FDA and expectations regarding FDA actions and the Company's response to these actions, the Company's ability to resolve questions raised by the FDA and to initiate clinical trials, the timing of such trials, financial resources needed to and other future operations of the Company. The forward-looking statements speak only as of the date of this news release. Stem Cells does not undertake to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof. Such statements reflect management's current views and are based on certain assumptions that may or may not ultimately prove valid. The Company's actual results may vary materially from those contemplated in the forward-looking statements due to risks and uncertainties to which the Company is subject, including uncertainty as to whether the FDA will remove the clinical hold on the Company's proposed initial clinical trial and permit the Company to proceed to clinical testing despite the novel and unproven nature of the Company's technology; uncertainties regarding the Company's ability to satisfy the FDA's concerns, if at all, or without conducting extensive and time consuming additional preclinical studies; uncertainty whether the FDA may at some point raise other concerns not included in its written notification to the Company of the clinical hold on the proposed trial; the risk that, even if approved, the Company's initial clinical trial could be substantially delayed beyond its expected dates; uncertainties regarding the Company's financial ability to continue its current research and development operations and to conduct the research and its ability to obtain the additional capital resources needed to do so, preclinical development and clinical trials necessary for regulatory approvals; the uncertainty regarding the outcome of the Phase I clinical trial and any other trials the Company may conduct in the future; the uncertainty regarding the validity and enforceability of issued patents; the uncertainty whether any products that may be generated in the Company's stem cell programs will prove clinically effective and not cause tumors or other side effects; the uncertainty whether the Company will achieve revenues from product sales or become profitable and other factors that are described in the Company's Annual Report on Form 10-K under the heading "Cautionary Factors Relevant to Forward-Looking Statements."

Contacts


The Rose Group
Jeff Rose, 310-280-3710
jeff@therosegrp.com