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NeoStem's Suzhou Erye Pharmaceutical Subsidiary Receives Approval to Manufacture Generic Cloxacillin

Monday, April 5, 2010 General News J E 4
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NEW YORK, April 5 NeoStem, Inc. ("NeoStem" or the "Company") (NYSE Amex: NBS), an international biopharmaceutical company with operations in the U.S. and China, announced that its Suzhou Erye Pharmaceutical subsidiary ("Erye") recently received approval from the State Food and Drug Administration (SFDA) in China to manufacture the sterile active pharmaceutical ingredient (API) of the anti-infective cloxacillin sodium. Cloxacillin sodium, a generic form Cloxapen, in finished dosage form is listed in China's National Medical Reimbursement Insurance List and thus is eligible for reimbursement by the government's healthcare programs.

NeoStem's Chairman and CEO, Robin Smith, commented, "Cloxacillin sodium is the second of seven drugs in Erye's pipeline to be approved since the acquisition of our 51% interest in Erye and is an important addition to the company's product offerings. As a result of China's healthcare reform, there will be an increase in access to healthcare professionals and medical products for the 1.3 billion people in China with a planned 30,000 new clinics and hospitals. This unprecedented government effort to provide universal healthcare coverage should undoubtedly increase demand for prescription antibiotics, many of which are covered as 'essential medicines' under the new healthcare insurance system."

"While there are many other manufactures in China approved to manufacture generic antibiotics, China's large market is more than sufficient to provide a significant opportunity for Erye," said Madam Jian Zhang, Erye's General Manager. "It is an important part of our strategy to expand our offerings of generic drugs and we hope to commercially launch the drug in the summer, along with generic omeprazole that was approved in November 2009."

NeoStem acquired its 51% interest in Erye through its acquisition of China Biopharmaceutical Holdings, Inc. in October 2009.

About NeoStem, Inc.

NeoStem, Inc. is engaged in the development of stem cell-based therapies and building of a network of adult stem cell collection centers in the U.S. and China that are focused on enabling people to donate and store their own (autologous) stem cells for their personal use in times of future medical need. The Company is also the licensee of various stem cell technologies, including a worldwide exclusive license to VSEL(TM) technology which uses very small embryonic-like stem cells, shown to have several physical characteristics that are generally found in embryonic stem cells, and is pursuing the licensing of other technologies for therapeutic use. NeoStem's majority-controlled Chinese pharmaceutical operation, Suzhou Erye, manufactures and distributes generic antibiotics in China. For more information, please visit: http://www.neostem.com .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Forward looking statements include statements herein with respect to the market potential of cloxacillin sodium and the launch timing of new drugs, about which no assurances can be given. The Company's actual results could differ materially from those anticipated in these forward- looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the "Risk Factors" described in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2010, as well as periodic filings made with the Securities and Exchange Commission. The Company's further development is highly dependent on future medical and research developments and market acceptance, which is outside its control.

NeoStem, Inc. CCG Investor Relations, Inc. Robin Smith, CEO Lei Huang, Account Manager Phone: +1 (212) 584-4174 Phone: +1 (646) 833-3417 E-mail: rsmith@neostem.com E-mail: lei.huang@ccgir.com http://www.neostem.com http://www.ccgirasia.com Crocker Coulson, President Phone: +1 (646) 213-1915 E-mail: crocker.coulson@ccgir.com

SOURCE Neostem, Inc.
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