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International Stem Cell Corporation's Lifeline Cell Technology Subsidiary Expands Sales and Distribution While Enhancing Manufacturing Capability and Clinical Product Opportunities

International Stem Cell Corporation (OTCBB:ISCO) (www.intlstemcell.com), the first company to perfect a method of creating human "parthenogenetic" stem cells derived from unfertilized human eggs, reports that its wholly owned subsidiary, Lifeline Cell Technology (Lifeline), grew 2011 first quarter product sales by 35% and gained well over 200 new customers compared with the prior year through new product introductions and the development of worldwide distribution channels. Lifeline also made significant progress in its strategy to expand its product applications into manufacturing human tissues and cells for clinical use. Lifeline Cell Technology develops, manufactures and markets the Lifeline® brand of cell culture products used by researchers to grow human cells for basic and pre-clinical research. Lifeline also fulfills an important role in parent ISCO's long-term strategy to be a leading developer and manufacturer of human cells and human-cell-based products for clinical applications.

Lifeline's chief executive officer, Jeffrey Janus, stated, "Our product sales growth was largely due to the development and launch of more than 30 new products in 2010, including products that allow researchers to study human stem cells. Lifeline also opened new distribution channels in Japan, India, Taiwan, South Korea and Singapore and has achieved significant sales in those new markets. Importantly, we have also moved closer to validating the feasibility of ISCO's strategic plan as our proprietary FibroLife® media is being used to cultivate tissue-engineered blood vessels for Cytograft Tissue Engineering in Novato, California. Cytograft's vessels are expected to be used as coronary grafts for coronary bypass procedures, as peripheral grafts to prevent lower limb amputations and as living tissue shunts for hemodialysis patients."

Cytograft's technology was recently featured at the American Heart Association's conference of emerging technology and can be viewed on the AHA's "Emerging Science Series Webinar" at scientificsessions.org/emergingscience.

Cytograft's chief executive officer, Todd McAllister, Ph.D., said, "Cytograft's clinical programs are going forward in Phase III trials and we are excited to be working with Lifeline as one of our key media developers and suppliers as we transition to commercialization and as we develop our next generation platform."

In anticipation of producing clinical grade products, Lifeline recently moved into new laboratory facilities that are capable of cGMP level manufacturing. Said Janus, "Lifeline Cell Technology provides ISCO the capacity to develop and manufacture human cell-based products for growing field of regenerative medicine, while at the same time generating revenue in the research market. The Cytograft opportunity is but one example of many potential clinical applications for Lifeline's products."

About International Stem Cell Corporation

International Stem Cell Corporation is focused on the therapeutic applications of human parthenogenetic stem cells and the development and commercialization of cell-based research and cosmetic products. ISCO's core technology, parthenogenesis, results in the creation of pluripotent human stem cells from unfertilized oocytes (eggs). hpSCs avoid ethical issues associated with the use or destruction of viable human embryos. ISCO scientists have created the first parthenogenic, homozygous stem cell line that can be a source of therapeutic cells with minimal immune rejection after transplantation into hundreds of millions of individuals of differing genders, ages and racial background. This offers the potential to create the first true stem cell bank, UniStemCell™. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary Lifeline Cell Technology, and cell-based skin care products through its subsidiary Lifeline Skin Care. More information is available at www.internationalstemcell.com.

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Forward-looking Statements

Statements pertaining to anticipated developments, product development and marketing plans, 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, competition, 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.

International Stem Cell Corporation
Jeffrey Janus
President and CEO, Lifeline Cell Technology
760-940-6383
jjanus@lifelinecelltech.com
or:
Lippert/Heilshorn & Associates
Don Markley
310-691-7100
dmarkley@lhai.com