Aastrom Announces Common Stock Exchange for December 2010 Warrants

Aastrom Biosciences, Inc.

announced today that it plans to exchange for common stock up to 10,000,000 of its outstanding warrants issued in December 2010. The warrants have an exercise price of $3.22 and an expiration date of December 15, 2015. Aastrom is exchanging one (1) share of common stock for every two (2) December 2010 warrants surrendered by the warrant holders. The purpose of the exchange is to improve the company's capital structure by reducing the number of outstanding warrants which have complex and dilutive features, and by reducing the number of fully diluted Aastrom shares by over five percent if all of the 10,000,000 December 2010 warrants are exchanged.