StemCells Announces Proposed Public Offering of Common Stock and Warrants

StemCells, Inc.

today announced that it intends to offer and sell common stock and warrants, subject to market and other conditions, in an underwritten public offering. The shares and warrants are being offered under the Company's effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC). StemCells intends to use the net proceeds of the offering for general corporate purposes, including working capital and operational purposes, including product development.