We will also be evaluating the utilization of this line for human transplantation and in collaboration with the FDA; we will investigate whether further development of this cell line will make it appropriate for the treatment of brain neurodegeneration and spinal cord repair.

Furthermore, U.S. BioDefense, Inc. has been granted an extension of six months on the option to license world patent application WO 03/054202 A1 and US patient application 5,958,767 entitled "Generation of Human Neural Crest Stem Cell Line and Its Utilization in Human Transplantation" and related applications with the University of British Columbia. U.S. BioDefense will release more detailed information about the neural crest stem cell technology and potential applications, including gene therapy, immediately after finalizing its evaluation and successful exercise of its option agreement.

Director of Research, Dr. Cyndi Chen, Ph.D. stated "This is exciting news for us and the medical community. This is the first step that will eventually allow us to pursue neural stem cell therapies and treatments for a number of degenerative diseases such as Parkinson's disease and Duchenne muscular dystrophy. The neural crest stem cells will be beneficial to the research and medical community as well as patients."

CEO David Chin stated that, "We are pleased to announce to shareholders that the company has received the neural crest stem cells that may prove useful for brain and spinal cord repair. Currently, the existence of immature multi-potent stem cells has been identified in the embryonic and adult human brain and several groups have generated stable, perpetual neural stem cell lines that were utilized for cell replacement or gene transfer therapies in animal models of human neurological disorders. To this end, we are to valuate a way to generate permanent cell lines of human neural crest stem cells with the ability to proliferate, exhibit self-renewal, generate a large number of clonally related progeny, retain their multi-lineage potential over time, and produce new cells in response to injury or disease."

U.S. BioDefense is a Department of Defense central contractor that researches, develops, and commercializes leading-edge stem cell biotechnology.

Safe Harbor Statement Forward-Looking Statements
Included in this release are certain "forward-looking" statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the U.S. BioDefense's financial performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, including continued maintenance of favorable license arrangements, success of market research identifying new product opportunities, successful introduction of new products, continued product innovation, the success of enhancements to the U.S. BioDefense's brand image, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important factors that should be considered is contained in the U.S. BioDefense's Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The U.S. BioDefense does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.

Source U.S. BioDefense