Dr. Alan Lewis takes the reins as Medistem's new CEO

Dear Friends and Colleagues,

It is my great pleasure to announce that our company Medistem has been fortunate to recruit a leader in the field of drug development to join us as CEO. Dr. Alan Lewis has grown companies to the point of exit in our space, as well as led the Juvenile Diabetes Research Foundation (JDRF), the largest supporter of diabetes research. Most importantly, Alan has watched Medistem grow since my joining in 2007, when I would periodically seek his advice on corporate direction and strategy. I will work closely with Alan in the position of President and Chief Scientific Officer.

Below please find the press release that we issued today.

Sincerely

Tom

Thomas Ichim, Ph.D
President and Chief Scientific Officer

Medistem Inc
9255 Towne Centre Drive
Suite 450
San Diego
CA 92121

858 349 3617
twitter: @thomasichim
www.medisteminc.com

Biopharmaceutical Executive Dr. Alan Lewis Appointed as CEO of Medistem
World-Class Industry Expert to Accelerate Commercialization of Universal Donor Stem Cell Drug for Heart Failure, Critical Limb Ischemia and Type 1 Diabetes

SAN DIEGO, CA--(Marketwire - Oct 9th 2012) - Medistem Inc. (PINKSHEETS: MEDS) announced today appointment of Dr. Alan Lewis to the position of Chief Executive Officer and Member of the Board. Since January, Dr. Lewis has been functioning in the capacity of Scientific Advisory Board Member for Medistem.

"We are enthusiastic that Dr. Lewis is taking the helm to help accelerate clinical development of the Endometrial Regenerative Cell (ERC) universal donor stem cell product, which is already a Phase I and Phase II studies for critical limb ischemia and congestive heart failure, respectively." Said Dr. Vladimir Bogin, Chairman of Medistem. "Dr. Thomas Ichim is assuming the role as the company's President and Chief Scientific Officer."

Dr. Lewis spent 15 years at the pharmaceutical company Wyeth-Ayerst, where he was Vice President of Research, leading translational research efforts in diabetes, CNS, cardiovascular, inflammatory, allergy and bone metabolism diseases. He subsequently became CEO of Signal Pharmaceuticals, a drug development company that he successfully merged with Celgene. He became CEO of Novocell Inc (Viacyte) and subsequently served as CEO of the Juvenile Diabetes Research Foundation, the largest research funding body for diabetes. Most recently he was CEO of Ambit Biosciences. He currently serves on the board of BioMarin (BMRN) and a number of private biotechnology companies.

"To date the Medistem team has demonstrated remarkable accomplishments by taking a stem cell from discovery to FDA clearance in the short span of 4 years; thus positioning the company as having the longest patent life among clinical-stage stem cell companies." Said Dr. Lewis. "In contrast to other types of stem cells, Medistem's ERC appears to be the most potent at stimulating production of new blood vessels. In addition, ERC's proven ability to differentiate into multiple tissue types has a potential to treat numerous indications."

Medistem has licensed intellectual property from Yale University related to using ERC to treat Type 1 Diabetes, which the company plans to develop into its third area of clinical trials.

About Medistem Inc. Medistem Inc. is a biotechnology company developing technologies related to adult stem cell extraction, manipulation, and use for treating inflammatory and degenerative diseases. The company's lead product, the endometrial regenerative cell (ERC), is a "universal donor" stem cell being developed for critical limb ischemia and congestive heart failure. A publication describing the support for use of ERC for this condition may be found at http://www.translational-medicine.com/content/pdf/1479-5876-6-45.pdf. ERC can be purchased for scientific use through Medistem's collaborator, General Biotechnology http://www.gnrlbiotech.com/?page=catalog_endometrial_regenerative_cells.

Cautionary Statement This press release does not constitute an offer to sell or a solicitation of an offer to buy any of our securities. This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information. Factors which may cause actual results to differ from our forward-looking statements are discussed in our Form 10-K for the year ended December 31, 2007 as filed with the Securities and Exchange Commission.

Contacts
Medistem Inc.
Thomas Ichim
President and Chief Scientific Officer
858-349-3617
Thomas.ichim@medisteminc.com
www.medisteminc.com
twitter: @thomasichim

Salute to Courage: Stem Cell Recipient Chris Niles earns award for his inspiration

Chris underwent stem cell therapy for spinal cord injury at the Stem Cell Institute in Panama City, Panama. It's great to see he's doing so well. Go Chris!

Patrick E. Litowitz
New Castle News
www.ncnewsonline.com

NEW CASTLE — A physician wanted to be clear with his patient — he would never walk again. The doctor repeated himself.

Chris Niles heard him the first time and knew he was moving forward regardless of the prognosis. The tree that crushed his spine on March 3, 2011, in the back yard of his Hickory Township home created a detour in his life. It didn’t end it.

Niles’ foundation of strength comes from numerous sources: his wife, Jennifer, and two sons, Christopher and Braden; family, friends and strangers; intense physical therapy; and stem cell treatments.

“Chris’ courage amazes me,” Jennifer said. “He still wakes up and faces every day with smile.”

Initially, he was paralyzed from his shoulder blades down. Today, the improvement has extended along the spinal cord to L1 vertebrae, the area near the large intestines. His feet and hip flexors contract, although he doesn’t control their motions. Then there are the tingling and burning sensations he feels in his lower extremities.

Along the journey, his willpower inspires others.

“He is a rock to many people without even knowing,” Jennifer said. “He makes this life look easy because he wants to prove to the world life can go on.”

Last night, her husband was honored as the New Castle Community YMCA’s Salute to Courage award recipient. A dinner in his honor took place at the Villa Banquet Center. The annual award goes to a Lawrence County resident demonstrating courage in recovering from an accident, injury or illness, in living with a disability or through an act of heroism, according to the Y.

More than 350 people attended.

“Chris got contagious,” his brother-in-law Raymond Omer said. “The fact that he has the injury is part of his motivation.

“This whole thing serves as an inspiration to this county. It’s awakened people that we are our brothers’ keepers.”

Chris’ lifelong friend, Carlo DiNardo, said he didn’t pity himself when the accident occurred.

“From Day One, whether he’s going to walk again or not, Chris is going to be OK. He’s not going to throw in the towel. … He can’t give up.

“He started thinking ahead — ‘Now what am I going to do?’ It wasn’t something that stopped him from life.”

Carlo said his friend’s drive is phenomenal.

“He wants to go to work. He wants to be a productive member of society. He also wants to give back.”

Raymond said assistance has come in layers. His family and friends remained steadfast in their support.

“Immediately after the injury, it was those people who had the most intimate relationship with Chris — people he worked with, people he saw every day.

“Now, we have those added layers of people who see this as a story of inspiration that want to participate in some way in Chris’ story. Their assistance is providing relief to those who were with Chris since that day of his injury.”

Although treatments will continue, Raymond and Carlo said Chris wants to take the attention away from him.

“We’re awestruck by the acts of kindness of the Lawrence County community and beyond,” Raymond said. “We’re ready to take this to the next step.

“Chris said to me, ‘I want to shut this down. I’m ready for my name and my fund to go to start helping other people.’ ”